Glossary
Free cash flow
Cash from operations minus capital expenditures.
Free cash flow is the cash a business generates from its operations minus what it spends on property and equipment (capital expenditures). It is the cash left over that can pay dividends, buy back stock, pay down debt or fund acquisitions.
Free cash flow = cash from operations − capital expenditures
Microsoft’s cash flow statement for fiscal 2026 shows $182.9B of cash from operations and $115.9B spent on property and equipment, much of it data centers. That leaves $67.0B of free cash flow.
Free cash flow isn’t defined by accounting rules, so companies that report it can calculate it differently. The two inputs above are standard lines in every cash flow statement.
Longer explainer: Free cash flow
Related terms: Stock buyback, Gross margin
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Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
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- Sources
- The SEC filings linked next to each figure.
- Last updated
- Nov 11, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn’t consider your situation.