Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved sharply relative to the preceding quarter, driven by higher operating cash flow and lower capital expenditure, though it was slightly lower than the same quarter one year earlier. The free cash flow margin strengthened sequentially but weakened modestly year over year.
- Operating cash flow was substantially higher than capital expenditure, resulting in positive free cash flow and a free cash flow margin that reflected strong cash conversion. Revenue was higher than the preceding quarter, and the margin improved as operating cash flow grew while capital expenditure declined.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both higher, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were slightly lower, while revenue was a bit lower and operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$885.0M
Capital spending and related asset purchases.
FCF margin
7.2%
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 |
|---|---|---|---|---|---|
| 2025-05-03 | $23.8B | $275.0M | $790.0M | -$515.0M | -2.2% |
| 2025-08-02 | $25.2B | $2.1B | $1.1B | $1.0B | 4.0% |
| 2025-11-01 | $25.3B | $1.1B | $978.0M | $149.0M | 0.6% |
| 2026-01-31 | $30.5B | $3.1B | $885.0M | $2.2B | 7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Higher Operating Cash Flow
Operating cash flow rose significantly from the prior quarter, while capital expenditure declined. This combination drove the substantial sequential increase in free cash flow and free cash flow margin.
Free cash flow and free cash flow margin both strengthened compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in positive free cash flow and a free cash flow margin that reflected strong cash conversion. Revenue was higher than the preceding quarter, and the margin improved as operating cash flow grew while capital expenditure declined.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were both higher, supported by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were slightly lower, while revenue was a bit lower and operating cash flow was lower.
Monitor whether operating cash flow can sustain its sequential improvement, as its level relative to capital expenditure was the primary driver of free cash flow during the quarter.