Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened as free cash flow margin improved compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than the prior quarter but higher than a year ago.
- Operating cash flow increased relative to revenue, while capital expenditure decreased, leading to higher free cash flow and an improved margin.
- Compared to the prior quarter, free cash flow and margin improved despite a slight decline in revenue. Versus the same quarter last year, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher or improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$107.9M
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $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% |
| 2025-08-31 | $17.6B | $3.9B | $107.9M | $3.8B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 269.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the same quarter last year, directly contributing to the increase in free cash flow.
The reduction in capital spending was the strongest observable driver of the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, while capital expenditure decreased, leading to higher free cash flow and an improved margin.
Compared to the prior quarter, free cash flow and margin improved despite a slight decline in revenue. Versus the same quarter last year, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher or improved.
Monitor the trend in capital expenditure, as its reduction was a notable factor in the current quarter's free cash flow improvement.