Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Operating cash flow increased while capital expenditure decreased relative to the prior quarter, resulting in a higher free cash flow and a stronger margin. Compared to the same quarter last year, operating cash flow was slightly higher, but a larger capital expenditure led to a lower free cash flow and margin.
- Free cash flow and its margin were higher than the prior quarter but lower than the same quarter last year. Revenue remained stable across both comparison periods, while capital expenditure declined sequentially but increased year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
10.7%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $13.8B | $3.6B | $2.9B | $726.0M | 5.3% |
| 2025-09-30 | $13.7B | $4.5B | $3.1B | $1.4B | 10.5% |
| 2025-12-31 | $13.6B | $3.8B | $3.3B | $426.0M | 3.1% |
| 2026-03-31 | $13.6B | $4.3B | $2.9B | $1.4B | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$93.9B | 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 reduction
Operating cash flow improved sequentially, but the primary observable shift was a reduction in capital expenditure compared to the prior quarter, which directly contributed to a higher free cash flow.
Free cash flow margin strengthened substantially compared to the prior quarter due to lower capital spending combined with stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure decreased relative to the prior quarter, resulting in a higher free cash flow and a stronger margin. Compared to the same quarter last year, operating cash flow was slightly higher, but a larger capital expenditure led to a lower free cash flow and margin.
Free cash flow and its margin were higher than the prior quarter but lower than the same quarter last year. Revenue remained stable across both comparison periods, while capital expenditure declined sequentially but increased year-over-year.
Track the trajectory of capital expenditure, which decreased from the prior quarter but remained elevated versus the year-ago period.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.