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 was negative as capital expenditure exceeded operating cash flow, despite revenue and operating cash flow being higher than the same quarter last year. Compared to the prior quarter, revenue and operating cash flow declined while capital expenditure increased.
- Revenue and operating cash flow were both lower than the previous quarter but higher than a year ago. Capital expenditure increased sequentially and year over year, resulting in negative free cash flow and a negative free cash flow margin, which widened compared to the same quarter last year.
- The current quarter's free cash flow turned negative from positive in the previous quarter, and the margin reversed from positive to negative. Year over year, free cash flow remained negative but the deficit deepened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$18.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$26.0B
Cash generated by operations before capital spending.
CapEx
$44.2B
Capital spending and related asset purchases.
FCF margin
-10.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-0.1%
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 | $167.7B | $32.5B | $32.2B | $332.0M | 0.2% |
| 2025-09-30 | $180.2B | $35.5B | $35.1B | $430.0M | 0.2% |
| 2025-12-31 | $213.4B | $54.5B | $39.5B | $14.9B | 7.0% |
| 2026-03-31 | $181.5B | $26.0B | $44.2B | -$18.2B | -10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -60.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure in the current quarter was higher than both the prior quarter and the same quarter last year. The filing context notes that operating cash flows primarily come from customer receipts, offset by payments for products, services, and employee compensation.
This increase directly contributed to the negative free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were both lower than the previous quarter but higher than a year ago. Capital expenditure increased sequentially and year over year, resulting in negative free cash flow and a negative free cash flow margin, which widened compared to the same quarter last year.
The current quarter's free cash flow turned negative from positive in the previous quarter, and the margin reversed from positive to negative. Year over year, free cash flow remained negative but the deficit deepened.
Monitor the gap between operating cash flow and capital expenditure, as it has widened sequentially and year over year.
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 | $2.6T | Used as the denominator for FCF yield. |
| TTM FCF yield | -0.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -1076.0x | A quick valuation bridge, not a full DCF. |