Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was slightly lower than the prior quarter despite higher revenue, as operating cash flow remained stable and capital expenditure increased. Compared with the same quarter last year, free cash flow improved alongside higher revenue and operating cash flow.
- Revenue increased while operating cash flow held steady, leading to a lower free cash flow margin as capital expenditure rose. The conversion from revenue to free cash flow weakened relative to both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, free cash flow was slightly lower and the margin narrowed, as operating cash flow was unchanged and capital expenditure was higher. Versus the same quarter one year earlier, free cash flow and revenue were both higher, though the margin was slightly lower.
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
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$186.2M
Capital spending and related asset purchases.
FCF margin
19.2%
The share of revenue converted into free cash flow.
TTM FCF yield
14.7%
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 |
|---|---|---|---|---|---|
| 2025-08-31 | $17.6B | $3.9B | $107.9M | $3.8B | 21.6% |
| 2025-11-30 | $18.7B | $1.7B | $156.6M | $1.5B | 8.0% |
| 2026-02-28 | $18.0B | $3.8B | $149.7M | $3.7B | 20.3% |
| 2026-05-31 | $18.7B | $3.8B | $186.2M | $3.6B | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.9% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Operating cash flow remained stable, supporting free cash flow improvement year over year.
Higher revenue was the strongest observable driver of the year-over-year free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow held steady, leading to a lower free cash flow margin as capital expenditure rose. The conversion from revenue to free cash flow weakened relative to both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, free cash flow was slightly lower and the margin narrowed, as operating cash flow was unchanged and capital expenditure was higher. Versus the same quarter one year earlier, free cash flow and revenue were both higher, though the margin was slightly lower.
Monitor the trend in capital expenditure, as its increase contributed to the margin decline this quarter.
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 | $85.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 14.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.