Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved markedly compared with both the preceding quarter and the same quarter one year earlier. Revenue was higher than both prior periods.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow and an improved margin. The conversion from revenue to free cash flow strengthened relative to both the prior quarter and the year-ago period.
- Compared with the preceding quarter, free cash flow and margin improved while revenue was slightly higher. Versus the same quarter last year, both free cash flow and margin improved substantially, supported by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$997.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2024-05-31 | $22.1B | $2.7B | $1.2B | $1.5B | 6.8% |
| 2024-08-31 | $21.6B | $1.2B | $767.0M | $420.0M | 1.9% |
| 2024-11-30 | $22.0B | $1.3B | $818.0M | $500.0M | 2.3% |
| 2025-02-28 | $22.2B | $2.0B | $997.0M | $1.0B | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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.
Free Cash Flow Strength
Free cash flow and margin improved to levels above both prior periods, reflecting higher revenue and operating cash flow and reduced capital expenditure relative to the year-ago quarter.
This provides greater financial flexibility for the company's operations and investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow and an improved margin. The conversion from revenue to free cash flow strengthened relative to both the prior quarter and the year-ago period.
Compared with the preceding quarter, free cash flow and margin improved while revenue was slightly higher. Versus the same quarter last year, both free cash flow and margin improved substantially, supported by higher operating cash flow and lower capital expenditure.
Monitor whether free cash flow can sustain at these improved levels given that capital expenditure increased from the prior quarter.