Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the quarter was higher than the preceding quarter but lower than the same quarter one year earlier. Operating cash flow and free cash flow both improved significantly from the previous quarter and were comparable to the year-ago level, resulting in a free cash flow margin that was substantially higher than the prior quarter and similar to the prior year.
- Operating cash flow was significantly higher than the prior quarter, while capital expenditure also increased. The resulting free cash flow and free cash flow margin both improved markedly from the prior quarter, reflecting a stronger cash conversion relative to revenue.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from a low level. Compared with the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were stable, and the free cash flow margin was nearly unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$923.0M
Capital spending and related asset purchases.
FCF margin
7.7%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-05-04 | $24.5B | $1.1B | $674.0M | $427.0M | 1.7% |
| 2024-08-03 | $25.5B | $2.2B | $639.0M | $1.6B | 6.3% |
| 2024-11-02 | $25.7B | $739.0M | $655.0M | $84.0M | 0.3% |
| 2025-02-01 | $30.9B | $3.3B | $923.0M | $2.4B | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Recovery
Operating cash flow rebounded sharply from the prior quarter, rising to a level matching the year-ago quarter. This recovery was the primary observable factor behind the improvement in free cash flow and margin.
The substantial increase in operating cash flow drove free cash flow higher and strengthened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than the prior quarter, while capital expenditure also increased. The resulting free cash flow and free cash flow margin both improved markedly from the prior quarter, reflecting a stronger cash conversion relative to revenue.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from a low level. Compared with the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were stable, and the free cash flow margin was nearly unchanged.
Capital expenditure increased relative to both the prior quarter and the year-ago quarter, warranting monitoring of its trend.