Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened significantly compared with both periods.
- Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter, yet the net effect on free cash flow was positive.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising from a lower level. Versus the same quarter last year, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$851.0M
Capital spending and related asset purchases.
FCF margin
24.4%
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 | $7.9B | $1.2B | $577.0M | $628.0M | 8.0% |
| 2024-11-30 | $5.9B | $911.0M | $592.0M | $319.0M | 5.4% |
| 2025-02-28 | $5.8B | $925.0M | $607.0M | $318.0M | 5.5% |
| 2025-05-31 | $6.3B | $2.4B | $851.0M | $1.5B | 24.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 272.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$25.8B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue showed only a modest increase. This was the strongest observable driver of free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter, yet the net effect on free cash flow was positive.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising from a lower level. Versus the same quarter last year, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow margin improved.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.