Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter was lower than the immediately preceding quarter but higher than the same quarter one year earlier. The cash conversion rate weakened sequentially but improved compared to the prior year.
- Revenue, operating cash flow, and free cash flow all moved in the same direction relative to each period. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the prior quarter but higher than the year-ago quarter, reflecting the change in cash generated per dollar of sales.
- Compared to the immediately preceding quarter, all metrics were lower, with a notable reduction in operating cash flow. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$129.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.7B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
24.0%
The share of revenue converted into free cash flow.
TTM FCF yield
2.8%
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $94.0B | $27.9B | $3.5B | $24.4B | 26.0% |
| 2025-09-27 | $102.5B | $29.7B | $3.2B | $26.5B | 25.8% |
| 2025-12-27 | $143.8B | $53.9B | $2.4B | $51.6B | 35.9% |
| 2026-03-28 | $111.2B | $28.7B | $2.0B | $26.7B | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow improvement year over year
Operating cash flow was higher compared to the same quarter one year earlier, a stronger observable change than the sequential decline. This year-over-year increase formed the base for the improvement in free cash flow and free cash flow margin.
The positive year-over-year change in operating cash flow was the primary observable factor supporting higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue, operating cash flow, and free cash flow all moved in the same direction relative to each period. The free cash flow margin, calculated as free cash flow divided by revenue, was lower than the prior quarter but higher than the year-ago quarter, reflecting the change in cash generated per dollar of sales.
Compared to the immediately preceding quarter, all metrics were lower, with a notable reduction in operating cash flow. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the magnitude of capital expenditure, which was lower relative to both the prior quarter and the year-ago quarter.
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 | $4.6T | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 36.1x | A quick valuation bridge, not a full DCF. |