Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated a substantial free cash flow with a healthy margin, driven by strong operating cash flow relative to revenue. Capital expenditure increased but remained well covered by operating cash flow, resulting in positive free cash flow for the quarter.
- Operating cash flow was significantly higher than revenue, yielding a free cash flow margin that improved from the preceding quarter. Capital expenditure consumed a portion of operating cash flow, but the resulting free cash flow was still substantial.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved slightly. Versus the same quarter one year earlier, all metrics strengthened substantially, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$11.9B
Cash generated by operations before capital spending.
CapEx
$6.4B
Capital spending and related asset purchases.
FCF margin
23.1%
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 |
|---|---|---|---|---|---|
| 2025-05-29 | $9.3B | $4.6B | $2.9B | $1.7B | 18.0% |
| 2025-08-28 | $11.3B | $5.7B | $5.7B | $72.0M | 0.6% |
| 2025-11-27 | $13.6B | $8.4B | $5.4B | $3.0B | 22.2% |
| 2026-02-26 | $23.9B | $11.9B | $6.4B | $5.5B | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.8% | 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 Expansion
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This strong cash generation was the primary factor behind the improved free cash flow margin.
The expansion in operating cash flow provided ample coverage for higher capital expenditure and still delivered a healthy free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than revenue, yielding a free cash flow margin that improved from the preceding quarter. Capital expenditure consumed a portion of operating cash flow, but the resulting free cash flow was still substantial.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved slightly. Versus the same quarter one year earlier, all metrics strengthened substantially, with free cash flow turning from negative to positive.
Monitor the trend in capital expenditure relative to operating cash flow, as the current level of investment, though covered, may influence future free cash flow generation.