Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the preceding quarter as operating cash flow increased while capital expenditure rose modestly. Cash generation weakened compared with the same quarter a year earlier, when operating cash flow was substantially higher.
- Revenue increased sequentially and was higher than the year-ago period. Operating cash flow rose from the prior quarter but fell versus the prior year, leading to a free cash flow margin that was improved sequentially but lower year over year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved significantly. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.5B
Cash generated by operations before capital spending.
CapEx
$7.1B
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2024-04-30 | $159.9B | $4.2B | $4.7B | -$427.0M | -0.3% |
| 2024-07-31 | $167.8B | $12.1B | $5.8B | $6.3B | 3.7% |
| 2024-10-31 | $168.0B | $6.6B | $6.2B | $372.0M | 0.2% |
| 2025-01-31 | $178.8B | $13.5B | $7.1B | $6.4B | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Volatility
The strongest observable driver was the sequential increase in operating cash flow, which rose from the prior quarter. However, operating cash flow remained well below the year-ago level, causing free cash flow to decline year over year.
Free cash flow was higher than the prior quarter but lower than the year-ago quarter, driven entirely by the change in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially and was higher than the year-ago period. Operating cash flow rose from the prior quarter but fell versus the prior year, leading to a free cash flow margin that was improved sequentially but lower year over year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved significantly. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were weaker.
Monitor operating cash flow trends, as the current quarter’s level was notably lower than the year-ago quarter despite higher revenue.