Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened markedly versus both the prior quarter and the same quarter a year earlier. Free cash flow margin improved, supported by higher operating cash flow and relatively stable capital expenditure.
- Revenue increased, operating cash flow rose more than proportionately, and capital expenditure was modestly higher than the prior quarter but lower than a year ago. The combination produced higher free cash flow and an improved free cash flow margin.
- Compared with the preceding quarter, revenue, operating cash flow, free cash flow and margin were all higher. Versus the same quarter a year earlier, each metric was substantially higher, with free cash flow margin improving markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$757.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $22.2B | $2.0B | $997.0M | $1.0B | 4.6% |
| 2025-05-31 | $22.2B | $2.5B | $1.5B | $1.0B | 4.7% |
| 2025-08-31 | $22.2B | $1.7B | $623.0M | $1.1B | 4.9% |
| 2025-11-30 | $23.5B | $2.0B | $757.0M | $1.2B | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Operating Cash Flow Growth
Operating cash flow increased compared with both the prior quarter and the same quarter last year. This was the strongest contributor to free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and margin without requiring a significant increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow rose more than proportionately, and capital expenditure was modestly higher than the prior quarter but lower than a year ago. The combination produced higher free cash flow and an improved free cash flow margin.
Compared with the preceding quarter, revenue, operating cash flow, free cash flow and margin were all higher. Versus the same quarter a year earlier, each metric was substantially higher, with free cash flow margin improving markedly.
Monitor the trend in operating cash flow to see if the improved cash generation can be sustained.