Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow despite a sequential decline in revenue. The company generated more cash from operations relative to its revenue, leading to a stronger free cash flow margin.
- Revenue converted into operating cash flow at a higher rate than in the preceding quarter and the year-ago period. After accounting for capital expenditure, free cash flow also increased, reflecting improved cash generation efficiency.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, resulting in a higher free cash flow and an improved margin. Versus the same quarter one year earlier, all metrics except capital expenditure were higher, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$712.0M
Capital spending and related asset purchases.
FCF margin
17.1%
The share of revenue converted into free cash flow.
TTM FCF yield
4.5%
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 | $9.2B | $2.3B | $369.0M | $1.9B | 20.8% |
| 2025-09-30 | $9.6B | $4.7B | $436.0M | $4.2B | 44.4% |
| 2025-12-31 | $9.9B | $1.6B | $642.0M | $961.0M | 9.7% |
| 2026-03-31 | $8.6B | $2.2B | $712.0M | $1.5B | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.3B | 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 strength
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This supported a higher free cash flow and margin.
The improvement in operating cash flow was the primary factor behind the enhanced free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow at a higher rate than in the preceding quarter and the year-ago period. After accounting for capital expenditure, free cash flow also increased, reflecting improved cash generation efficiency.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, resulting in a higher free cash flow and an improved margin. Versus the same quarter one year earlier, all metrics except capital expenditure were higher, with free cash flow margin showing improvement.
Monitor the trend in capital expenditure, which increased from both comparison 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 | $191.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 27.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.