Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose from the same quarter last year. Operating cash flow improved sequentially, yet free cash flow and margin both fell compared to the year-ago period.
- The company converted a portion of revenue into operating cash flow, then after capital expenditure, generated free cash flow. The free cash flow margin reflects the efficiency of this conversion.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, while revenue was lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$849.0M
Capital spending and related asset purchases.
FCF margin
3.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.5%
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 | $98.9B | $1.9B | $607.0M | $1.3B | 1.3% |
| 2025-09-30 | $102.9B | $796.0M | $698.0M | $98.0M | 0.1% |
| 2025-12-31 | $105.7B | $3.4B | $784.0M | $2.6B | 2.5% |
| 2026-03-31 | $100.4B | $4.2B | $849.0M | $3.4B | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Improvement
Operating cash flow rose compared to the prior quarter, even as revenue declined. This indicates stronger cash generation relative to the revenue base.
The higher operating cash flow was the primary factor behind the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of revenue into operating cash flow, then after capital expenditure, generated free cash flow. The free cash flow margin reflects the efficiency of this conversion.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved, while revenue was lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin weakened.
Capital expenditure increased from both the prior quarter and the year-ago quarter, making its trajectory a key item to monitor.
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 | $135.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.5% | 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.