Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year ago. However, operating cash flow was lower than the prior quarter, resulting in a free cash flow and margin that weakened sequentially but were stable compared to the same quarter last year.
- Operating cash flow was lower than the prior quarter despite higher revenue, while capital expenditure was slightly lower. Consequently, free cash flow and its margin both declined from the prior quarter's figures but matched the year-ago levels.
- Sequentially, free cash flow and margin weakened notably due to the drop in operating cash flow. Year-over-year, free cash flow improved slightly and margin was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
2.5%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 2025-02-16 | $63.7B | $2.7B | $1.1B | $1.6B | 2.5% |
| 2025-05-11 | $63.2B | $3.5B | $1.1B | $2.3B | 3.7% |
| 2025-11-23 | $67.3B | $4.7B | $1.5B | $3.2B | 4.7% |
| 2026-02-15 | $69.6B | $3.0B | $1.3B | $1.7B | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.6B | 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 the prior quarter even though revenue was higher, reducing free cash flow and margin.
This decline in cash conversion weakened the quarter's free cash flow generation relative to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter despite higher revenue, while capital expenditure was slightly lower. Consequently, free cash flow and its margin both declined from the prior quarter's figures but matched the year-ago levels.
Sequentially, free cash flow and margin weakened notably due to the drop in operating cash flow. Year-over-year, free cash flow improved slightly and margin was unchanged.
Monitor the relationship between revenue growth and operating cash flow trends, as the quarter exhibited a decline in cash conversion efficiency.