Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow was higher year-over-year but lower than the previous quarter, driven by changes in operating cash flow and capital expenditure.
- Operating cash flow converted into free cash flow after capital expenditure, yielding a positive but modest free cash flow margin. The margin weakened from the prior quarter but improved compared to the same quarter a year ago.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with a weaker free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.1B
Cash generated by operations before capital spending.
CapEx
$7.2B
Capital spending and related asset purchases.
FCF margin
1.1%
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 |
|---|---|---|---|---|---|
| 2025-01-31 | $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% |
| 2025-10-31 | $177.8B | $9.1B | $7.2B | $1.9B | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.4B | 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
Revenue increased compared to both the prior quarter and the same quarter last year, providing a broader base for cash generation.
Higher revenue supported higher operating cash flow and free cash flow compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure, yielding a positive but modest free cash flow margin. The margin weakened from the prior quarter but improved compared to the same quarter a year ago.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with a weaker free cash flow margin. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.