Free cash flow is the cash a business generates from operations after paying for the capital spending needed to maintain and grow it. It is what remains for dividends, buybacks, debt repayment or acquisitions. There is no single definition, and companies calculate it differently.
Profit and free cash flow are different things. A profitable company can show thin free cash flow while it invests heavily, and the figure can swing with the timing of payments and collections. Because definitions vary, compare only on the same basis.
Microsoft's operating cash flow was $58.0 billion in the quarter to September 2026, up 29%, but free cash flow fell 27% to $18.6 billion, according to Investing.com. That equals operating cash flow less the $39.4 billion of cash paid for property and equipment, while headline capital expenditure was $45.2 billion because it includes $7.4 billion of finance leases. Management said it expects to stay free cash flow positive in fiscal 2027. SK hynix said it will return more than half of its free cash flow to shareholders.
Read how free cash flow is calculated, whether leases are included, and compare it across several periods.