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 sharply from both the prior quarter and the year-ago quarter, but free cash flow remained negative due to capital expenditure exceeding operating cash flow. The free cash flow margin weakened relative to a year ago but improved from the preceding quarter.
- Operating cash flow as a percentage of revenue increased significantly compared to both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. However, capital expenditure remained elevated, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising from negative to less negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was also higher, leading to a more negative free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$23.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$14.6B
Cash generated by operations before capital spending.
CapEx
$16.5B
Capital spending and related asset purchases.
FCF margin
-9.8%
The share of revenue converted into free cash flow.
TTM FCF yield
-5.8%
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 |
|---|---|---|---|---|---|
| 2025-08-31 | $14.9B | $8.1B | $8.5B | -$362.0M | -2.4% |
| 2025-11-30 | $16.1B | $2.1B | $12.0B | -$10.0B | -62.1% |
| 2026-02-28 | $17.2B | $7.2B | $18.6B | -$11.5B | -66.8% |
| 2026-05-31 | $19.2B | $14.6B | $16.5B | -$1.9B | -9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -43.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 86.0% | 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.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure was higher than operating cash flow in the current quarter, continuing a pattern seen in the prior quarter and the year-ago quarter. The filing context notes that capital expenditures were a significant use of cash during fiscal 2026.
This sustained gap between capital expenditure and operating cash flow is the strongest observable driver of negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue increased significantly compared to both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. However, capital expenditure remained elevated, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin rising from negative to less negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was also higher, leading to a more negative free cash flow margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it remains the primary factor keeping free cash flow negative.
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 | $405.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | -5.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |