Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by lower operating cash flow. The free cash flow margin also narrowed over both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter. The resulting free cash flow and margin weakened sequentially and year-over-year.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased, while capital expenditure also fell. Versus the same quarter last year, revenue increased, but operating cash flow, free cash flow, and margin declined, with capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.9B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
14.4%
The share of revenue converted into free cash flow.
TTM FCF yield
42.6%
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 | $30.3B | $7.8B | $2.7B | $5.1B | 16.9% |
| 2025-09-30 | $31.2B | $8.7B | $3.1B | $5.6B | 18.0% |
| 2025-12-31 | $32.3B | $8.8B | $3.7B | $5.1B | 15.8% |
| 2026-03-31 | $31.5B | $6.9B | $2.4B | $4.5B | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 208.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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 was lower than both the prior quarter and the same quarter last year, which directly reduced free cash flow despite lower capital expenditure.
The decline in operating cash flow was the primary factor behind the weakened free cash flow and margin.
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 higher than a year ago. Operating cash flow declined from both comparison periods, while capital expenditure was lower than the prior quarter but slightly higher than the year-ago quarter. The resulting free cash flow and margin weakened sequentially and year-over-year.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased, while capital expenditure also fell. Versus the same quarter last year, revenue increased, but operating cash flow, free cash flow, and margin declined, with capital expenditure slightly higher.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and 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 | $47.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 42.6% | 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.