Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
FedEx generated stable free cash flow in the quarter, matching the prior quarter's level but falling short of the year-ago result. The company's filing discusses liquidity and capital resources and presents an outlook for the upcoming fiscal year.
- Operating cash flow improved compared to the prior quarter, but with higher capital spending, free cash flow remained unchanged sequentially. The free cash flow margin edged up slightly from the prior quarter but was lower than the same quarter last year.
- Revenue was stable versus the prior quarter and moderately higher than a year ago. Operating cash flow strengthened from the prior quarter but weakened from the year-ago period, while capital expenditure increased relative to both quarters. Free cash flow held steady sequentially but declined year over year.
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
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-05-31 | $22.2B | $2.5B | $1.5B | $1.0B | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.4B | 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 and Capital Spending Balance
Operating cash flow improved sequentially, helping to maintain free cash flow at the prior quarter's level even as capital expenditure increased. However, compared to the same quarter last year, the rise in capital spending outpaced the change in operating cash flow, resulting in lower free cash flow.
Free cash flow margin improved slightly from the prior quarter but remained below the year-ago margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved compared to the prior quarter, but with higher capital spending, free cash flow remained unchanged sequentially. The free cash flow margin edged up slightly from the prior quarter but was lower than the same quarter last year.
Revenue was stable versus the prior quarter and moderately higher than a year ago. Operating cash flow strengthened from the prior quarter but weakened from the year-ago period, while capital expenditure increased relative to both quarters. Free cash flow held steady sequentially but declined year over year.
Monitor the trajectory of capital expenditure, which rose this quarter compared to both the prior quarter and the same period last year.