Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened from the prior quarter but was higher than the same quarter last year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter and the same quarter last year. Capital expenditure increased significantly from the prior quarter, resulting in a lower free cash flow margin despite higher operating cash flow.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure rose substantially, causing free cash flow and free cash flow margin to be lower. Versus the same quarter last year, all metrics were higher except free cash flow margin, which improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.7B
Cash generated by operations before capital spending.
CapEx
$5.7B
Capital spending and related asset purchases.
FCF margin
0.6%
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 |
|---|---|---|---|---|---|
| 2024-11-28 | $8.7B | $3.2B | $3.2B | $38.0M | 0.4% |
| 2025-02-27 | $8.1B | $3.9B | $4.1B | -$113.0M | -1.4% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 50.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter last year, which supported an increase in operating cash flow. This was the strongest observable driver of cash generation.
Higher revenue contributed to improved operating cash flow, though the impact on free cash flow was offset by elevated capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter and the same quarter last year. Capital expenditure increased significantly from the prior quarter, resulting in a lower free cash flow margin despite higher operating cash flow.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure rose substantially, causing free cash flow and free cash flow margin to be lower. Versus the same quarter last year, all metrics were higher except free cash flow margin, which improved.
Monitor the level of capital expenditure relative to operating cash flow, as the substantial increase this quarter reduced free cash flow.