Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose versus both the prior quarter and the year-ago quarter. The free cash flow margin improved sequentially but was slightly lower than the same quarter last year.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago period. After deducting capital expenditure, free cash flow retained a strong share of revenue, reflecting consistent cash conversion.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was slightly lower. Versus the same quarter one year ago, revenue and operating cash flow were higher, free cash flow was higher, capital expenditure was higher, and free cash flow margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$169.1M
Capital spending and related asset purchases.
FCF margin
19.8%
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 |
|---|---|---|---|---|---|
| 2024-08-31 | $16.4B | $3.4B | $213.6M | $3.2B | 19.4% |
| 2024-11-30 | $17.7B | $1.0B | $152.2M | $870.3M | 4.9% |
| 2025-02-28 | $16.7B | $2.9B | $170.8M | $2.7B | 16.1% |
| 2025-05-31 | $17.7B | $3.7B | $169.1M | $3.5B | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 growth
Operating cash flow rose sequentially and year-over-year, outpacing revenue growth. This was the strongest observable driver of free cash flow expansion.
Higher operating cash flow directly supported a larger free cash flow despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago period. After deducting capital expenditure, free cash flow retained a strong share of revenue, reflecting consistent cash conversion.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, while capital expenditure was slightly lower. Versus the same quarter one year ago, revenue and operating cash flow were higher, free cash flow was higher, capital expenditure was higher, and free cash flow margin weakened modestly.
The level of capital expenditure relative to the year-ago quarter merits attention as it rose while free cash flow margin edged lower.