Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose from the prior quarter and from a year ago. Free cash flow improved sharply from the prior quarter but was slightly lower than the same quarter one year earlier.
- Free cash flow margin widened versus the prior quarter as operating cash flow scaled with higher revenue and capital expenditure increased moderately. Compared with a year ago, the margin narrowed because operating cash flow grew less than revenue while capital expenditure was higher.
- From the prior quarter, all metrics improved except capital expenditure which was stable. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow and margin were slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.1B
Cash generated by operations before capital spending.
CapEx
$8.0B
Capital spending and related asset purchases.
FCF margin
3.2%
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 |
|---|---|---|---|---|---|
| 2025-04-30 | $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% |
| 2026-01-31 | $188.9B | $14.1B | $8.0B | $6.1B | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Improved Operating Cash Flow
Operating cash flow rose compared to both the prior quarter and a year ago, driving a meaningful sequential improvement in free cash flow.
Stronger operating cash flow supported higher free cash flow generation relative to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin widened versus the prior quarter as operating cash flow scaled with higher revenue and capital expenditure increased moderately. Compared with a year ago, the margin narrowed because operating cash flow grew less than revenue while capital expenditure was higher.
From the prior quarter, all metrics improved except capital expenditure which was stable. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow and margin were slightly lower.
Monitor the trend in free cash flow margin given it weakened year over year despite higher revenue.