Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sequentially as revenue and operating cash flow both declined, while free cash flow margin narrowed. Compared to the same quarter last year, cash conversion improved with higher revenue, operating cash flow, and free cash flow margin.
- Revenue, operating cash flow, and free cash flow all decreased from the prior quarter, leading to a lower free cash flow margin. Capital expenditure also declined, but the drop in operating cash flow was proportionally larger, weakening cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year ago, all these metrics were higher, with free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$728.0M
Capital spending and related asset purchases.
FCF margin
6.6%
The share of revenue converted into free cash flow.
TTM FCF yield
2.2%
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 | $3.1B | $555.0M | $2.6B | 15.5% |
| 2025-09-30 | $17.6B | $3.7B | $658.0M | $3.1B | 17.5% |
| 2025-12-31 | $19.1B | $3.6B | $898.0M | $2.7B | 14.1% |
| 2026-03-31 | $17.4B | $1.9B | $728.0M | $1.1B | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Decline
Operating cash flow decreased from the prior quarter, while revenue also fell. The filing notes that consolidated operating cash flow for the first three months of 2026 was up compared to the same period a year ago, but the sequential comparison shows a weakening.
The sequential drop in operating cash flow was the primary factor behind the lower free cash flow and narrower margin this quarter.
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 decreased from the prior quarter, leading to a lower free cash flow margin. Capital expenditure also declined, but the drop in operating cash flow was proportionally larger, weakening cash conversion.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year ago, all these metrics were higher, with free cash flow margin improved.
Monitor the trend in operating cash flow relative to revenue, as the sequential decline in cash conversion was driven by a proportionally larger drop in operating cash flow.
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 | $429.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.2% | 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.