Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior year, but free cash flow margin declined from the preceding quarter. Operating cash flow was lower sequentially, while capital expenditure remained low.
- Cash conversion was supported by operating cash flow representing a large share of revenue, while capital expenditure consumed only a small portion. The resulting free cash flow margin was strong, though lower than the immediate prior quarter.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
45.7%
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 |
|---|---|---|---|---|---|
| 2025-05-30 | $5.9B | $2.2B | $47.0M | $2.1B | 36.5% |
| 2025-08-29 | $6.0B | $2.2B | $72.0M | $2.1B | 35.5% |
| 2025-11-28 | $6.2B | $3.2B | $34.0M | $3.1B | 50.5% |
| 2026-02-27 | $6.4B | $3.0B | $37.0M | $2.9B | 45.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $953.0M | 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 increased from both the preceding quarter and the year-ago quarter, and this higher top-line supported free cash flow despite a lower operating cash flow conversion.
Revenue growth was the strongest observable factor offsetting the decline in operating cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was supported by operating cash flow representing a large share of revenue, while capital expenditure consumed only a small portion. The resulting free cash flow margin was strong, though lower than the immediate prior quarter.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, leading to a weakened free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the level of operating cash flow versus revenue, as the conversion rate declined from the prior quarter.