Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Operating cash flow and free cash flow improved sequentially and year-over-year, while free cash flow margin increased notably.
- Operating cash flow as a share of revenue strengthened versus both prior periods, rising from the preceding quarter and from the year-ago quarter. Capital expenditure declined sequentially and year-over-year, supporting a stronger free cash flow conversion.
- Compared with the immediately preceding quarter, revenue was lower yet operating cash flow and free cash flow were higher, with margin improving. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
20.8%
The share of revenue converted into free cash flow.
TTM FCF yield
17.9%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $16.6B | $1.9B | $1.0M | $1.9B | 11.3% |
| 2025-09-30 | $17.3B | $3.3B | $48.0M | $3.2B | 18.8% |
| 2025-12-31 | $17.3B | $3.0B | $89.0M | $2.9B | 16.7% |
| 2026-03-31 | $16.9B | $3.6B | $40.0M | $3.5B | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Operating Cash Flow Growth
Operating cash flow increased sequentially and year-over-year, outpacing the change in revenue. This improvement occurred alongside lower capital expenditure, yielding a free cash flow margin that was higher in both comparisons.
Free cash flow and free cash flow margin reached levels higher than both the preceding quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue strengthened versus both prior periods, rising from the preceding quarter and from the year-ago quarter. Capital expenditure declined sequentially and year-over-year, supporting a stronger free cash flow conversion.
Compared with the immediately preceding quarter, revenue was lower yet operating cash flow and free cash flow were higher, with margin improving. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor capital expenditure levels, which were lower in the current quarter compared with both prior periods.
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 | $64.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 17.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.