Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and the year-ago quarter, driven by higher revenue and operating cash flow. The cash conversion rate strengthened as free cash flow margin expanded significantly.
- Revenue and operating cash flow both rose, while capital expenditure increased at a slower pace, leading to a higher free cash flow and an improved free cash flow margin. This indicates stronger cash conversion efficiency during the quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from the prior level. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$26.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$25.4B
Cash generated by operations before capital spending.
CapEx
$7.8B
Capital spending and related asset purchases.
FCF margin
42.4%
The share of revenue converted into free cash flow.
TTM FCF yield
2.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-08-28 | $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% |
| 2026-05-28 | $41.5B | $25.4B | $7.8B | $17.6B | 42.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 62.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.9% | 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.
Revenue Growth
Revenue increased substantially from both the prior quarter and the year-ago quarter, providing a strong base for operating cash flow expansion. This was the most observable driver of free cash flow improvement.
Higher revenue directly supported higher operating cash flow and free cash flow, with free cash flow margin rising accordingly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both rose, while capital expenditure increased at a slower pace, leading to a higher free cash flow and an improved free cash flow margin. This indicates stronger cash conversion efficiency during the quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from the prior level. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin also improved.
Monitor the trend in capital expenditure relative to operating cash flow, as its pace could affect future free cash flow generation.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $1.1T | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |