Sector Report5 min read
Technology: 29 A-grades and three failures
76% of tech companies grade A. Three burn cash. The sector split tells you where to look.
Mar 16, 2026
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Technology companies including software, hardware, semiconductors, and cloud services
Sector classifications follow the GICS industry standard.
Companies ranked by free cash flow margin
Health grades across the sector
| # | Symbol | Grade | FCF Margin |
|---|---|---|---|
| 1 | PLTR | A | 46.9% |
| 2 | NVDA | A | 44.8% |
| 3 | VEEV | A | 44.3% |
| 4 | AVGO | A | 42.1% |
| 5 | ADBE | A | 41.4% |
| 6 | ZM | A | 39.5% |
| 7 | ADI | A | 38.8% |
| 8 | PANW | A | 37.6% |
| 9 | CRM | A | 34.7% |
| 10 | NOW | A | 34.1% |
| 11 | FTNT | A | 32.7% |
| 12 | KLAC | A | 30.8% |
| 13 | CDNS | A | 30.0% |
| 14 | OKTA | A | 29.6% |
| 15 | LRCX | A | 29.4% |
| 16 | WDAY | A | 29.1% |
| 17 | QCOM | A | 28.9% |
| 18 | ZS | A | 27.2% |
| 19 | TEAM | A | 27.1% |
| 20 | DDOG | A | 26.7% |
| 21 | CRWD | A | 25.8% |
| 22 | MSFT | A | 25.4% |
| 23 | SNOW | A | 23.9% |
| 24 | AAPL | A | 23.7% |
| 25 | CSCO | B | 23.5% |
| 26 | AMAT | A | 20.1% |
| 27 | AMD | A | 19.4% |
| 28 | SNPS | C | 19.1% |
| 29 | NXPI | A | 18.6% |
| 30 | SHOP | A | 17.4% |
| 31 | MRVL | C | 17.0% |
| 32 | IBM | D | 17.0% |
| 33 | ACN | A | 15.6% |
| 34 | TXN | B | 14.7% |
| 35 | NET | D | 12.0% |
| 36 | MU | F | 4.5% |
| 37 | ORCL | F | -0.7% |
| 38 | INTC | F | -9.4% |
76% of tech companies grade A. Three burn cash. The sector split tells you where to look.
Apple generates $98.8 billion in free cash flow with a 23.7% margin — exceptional by any measure. But the current ratio of 0.89 tells a different story about what happens when the bills come due.
MSFT converts 25% of revenue into free cash flow. The A-grade isn't generous. It's arithmetic.