Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow turned negative as operating cash flow contracted while capital expenditure remained substantial. Revenue and operating cash flow both decreased from the prior quarter, although revenue was higher than the same quarter last year.
- The conversion of revenue into operating cash flow weakened, with operating cash flow declining relative to both the prior quarter and the year-ago quarter. Capital expenditure stayed elevated, resulting in a negative free cash flow margin, compared to positive margins in the comparative periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was slightly lower, leading to a significantly lower free cash flow. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure increased, producing a lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$6.7B
Capital spending and related asset purchases.
FCF margin
-1.1%
The share of revenue converted into free cash flow.
TTM FCF yield
1.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-07-31 | $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% |
| 2026-04-30 | $175.7B | $4.7B | $6.7B | -$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 | -36.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.1B | 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 decline
Operating cash flow fell from both the prior quarter and the same quarter last year, while capital expenditure remained at a significant level. The filing context includes a discussion on liquidity and capital resources, but no specific causal factors are provided for the quarter's movements.
The reduction in operating cash flow, combined with sustained capital spending, drove free cash flow into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow weakened, with operating cash flow declining relative to both the prior quarter and the year-ago quarter. Capital expenditure stayed elevated, resulting in a negative free cash flow margin, compared to positive margins in the comparative periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while capital expenditure was slightly lower, leading to a significantly lower free cash flow. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure increased, producing a lower free cash flow.
Monitor the trend of operating cash flow generation relative to the level of capital expenditure.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $895.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 73.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.