Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened notably versus both periods.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow, while lower than the prior quarter, was substantially higher than the same quarter last year. Capital expenditure decreased sharply from the prior quarter and was slightly lower than a year ago, resulting in a free cash flow that was much higher than both comparison periods.
- Compared to the prior quarter, free cash flow and free cash flow margin improved markedly as capital expenditure dropped sharply despite a slight decline in revenue and operating cash flow. Versus the same quarter last year, free cash flow and margin strengthened substantially, supported by higher revenue and operating cash flow with slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$697.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$566.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2025-05-31 | $6.3B | $2.4B | $851.0M | $1.5B | 24.4% |
| 2025-08-31 | $8.2B | $1.4B | $647.0M | $736.0M | 9.0% |
| 2025-11-30 | $6.3B | $1.5B | $1.5B | $12.0M | 0.2% |
| 2026-02-28 | $6.2B | $1.3B | $566.0M | $697.0M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 270.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure decreased sharply from the prior quarter and was slightly lower than the same quarter last year, which directly boosted free cash flow despite a modest decline in operating cash flow from the prior quarter.
This reduction in capital expenditure was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow, while lower than the prior quarter, was substantially higher than the same quarter last year. Capital expenditure decreased sharply from the prior quarter and was slightly lower than a year ago, resulting in a free cash flow that was much higher than both comparison periods.
Compared to the prior quarter, free cash flow and free cash flow margin improved markedly as capital expenditure dropped sharply despite a slight decline in revenue and operating cash flow. Versus the same quarter last year, free cash flow and margin strengthened substantially, supported by higher revenue and operating cash flow with slightly lower capital expenditure.
Monitor the trend in capital expenditure, as its sharp decline from the prior quarter was the primary factor behind the free cash flow improvement.