Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter on higher revenue and operating cash flow. Compared with the same quarter last year, free cash flow and margin were stable.
- Operating cash flow as a share of revenue was higher than in the prior quarter but similar to the year-ago level. With capital expenditure slightly larger than a year earlier, free cash flow margin held level.
- Revenue, operating cash flow, and free cash flow all increased from the immediately preceding quarter. Versus the same quarter one year earlier, revenue was higher; operating cash flow, capital expenditure, and free cash flow were also higher, while the free cash flow margin was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$12.9B
Cash generated by operations before capital spending.
CapEx
$6.4B
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2024-10-31 | $168.0B | $6.6B | $6.2B | $372.0M | 0.2% |
| 2025-01-31 | $178.8B | $13.5B | $7.1B | $6.4B | 3.6% |
| 2025-04-30 | $164.0B | $5.4B | $5.0B | $425.0M | 0.3% |
| 2025-07-31 | $175.8B | $12.9B | $6.4B | $6.5B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth supported cash generation
Revenue was higher than both the prior quarter and the year-ago quarter, contributing to a significant sequential increase in operating cash flow. This was the most observable factor behind the improvement in free cash flow.
Higher revenue provided the basis for stronger cash conversion in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in the prior quarter but similar to the year-ago level. With capital expenditure slightly larger than a year earlier, free cash flow margin held level.
Revenue, operating cash flow, and free cash flow all increased from the immediately preceding quarter. Versus the same quarter one year earlier, revenue was higher; operating cash flow, capital expenditure, and free cash flow were also higher, while the free cash flow margin was unchanged.
Monitor the relationship between revenue growth and operating cash flow in future quarters for consistency.