Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved while capital expenditure increased, resulting in higher free cash flow and a wider margin compared to the prior quarter. Versus the same quarter a year ago, cash generation was lower despite higher revenue.
- Revenue was lower than the prior quarter, but operating cash flow rose, leading to a higher free cash flow margin. Compared to the same period last year, revenue was higher yet operating cash flow and free cash flow margin were significantly lower.
- Free cash flow and margin improved compared to the immediately preceding quarter, driven by a larger increase in operating cash flow relative to capital expenditure. However, both free cash flow and margin weakened substantially versus the same quarter one year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
25.2%
The share of revenue converted into free cash flow.
TTM FCF yield
5.9%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $3.8B | Cash generated by operations before capital spending. |
| Capital expenditures | $1.1B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $2.7B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $8.8B | $4.3B | $452.0M | $3.8B | 43.4% |
| 2022-09-30 | $8.7B | $4.5B | $443.0M | $4.1B | 46.5% |
| 2022-12-31 | $9.1B | $8.4B | $513.0M | $7.9B | 87.3% |
| 2023-03-31 | $8.8B | -$377.0M | $360.0M | -$737.0M | -8.3% |
| 2023-06-30 | $9.4B | $3.9B | $376.0M | $3.5B | 37.6% |
| 2023-09-30 | $9.4B | $8.2B | $401.0M | $7.8B | 83.6% |
| 2023-12-31 | $9.6B | $6.8B | $426.0M | $6.3B | 66.3% |
| 2024-03-31 | $9.3B | $5.6B | $396.0M | $5.2B | 55.2% |
| 2024-06-30 | $9.8B | $4.5B | $565.0M | $4.0B | 40.4% |
| 2024-09-30 | $9.7B | -$1.8B | $455.0M | -$2.3B | -23.3% |
| 2024-12-31 | $10.0B | $5.8B | $495.0M | $5.3B | 53.1% |
| 2025-03-31 | $9.6B | $4.8B | $430.0M | $4.3B | 45.0% |
| 2025-06-30 | $10.3B | $4.4B | $619.0M | $3.7B | 36.3% |
| 2025-09-30 | $10.4B | $6.2B | $654.0M | $5.6B | 53.6% |
| 2025-12-31 | $10.9B | $3.1B | $722.0M | $2.3B | 21.4% |
| 2026-03-31 | $10.5B | $3.8B | $1.1B | $2.7B | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | 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.
Sequential Operating Cash Flow Recovery
Operating cash flow rebounded strongly from the prior quarter, more than offsetting a rise in capital expenditure and lifting free cash flow and margin.
This sequential improvement in cash conversion is the strongest observable driver for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow rose, leading to a higher free cash flow margin. Compared to the same period last year, revenue was higher yet operating cash flow and free cash flow margin were significantly lower.
Free cash flow and margin improved compared to the immediately preceding quarter, driven by a larger increase in operating cash flow relative to capital expenditure. However, both free cash flow and margin weakened substantially versus the same quarter one year ago.
Monitor capital expenditure trends, as the level was higher both sequentially and year-over-year, impacting free cash flow generation.
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 | $242.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.9% | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |