Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago period, but operating cash flow fell sharply, resulting in negative free cash flow and margin for the quarter.
- Despite higher revenue, operating cash flow was significantly lower, while capital expenditure remained relatively stable. This combination led to free cash flow turning negative, with a corresponding negative margin.
- Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow was lower than both comparison periods, and capital expenditure was lower than the prior quarter but similar to the year-ago level. Free cash flow moved from positive in both prior periods to negative in the current quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$4.1B
Capital spending and related asset purchases.
FCF margin
-3.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
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 | $44.4B | $8.6B | $3.7B | $4.9B | 11.0% |
| 2025-09-30 | $48.2B | $9.4B | $4.4B | $4.9B | 10.3% |
| 2025-12-31 | $45.8B | $10.8B | $5.3B | $5.5B | 12.1% |
| 2026-03-31 | $47.6B | $2.5B | $4.1B | -$1.5B | -3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | 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 weakened significantly from both the prior quarter and the year-ago period, while revenue increased. The filing attributes the decline primarily to higher working capital outflows.
The reduction in operating cash flow was the strongest driver of the negative free cash flow, as capital expenditure remained stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was significantly lower, while capital expenditure remained relatively stable. This combination led to free cash flow turning negative, with a corresponding negative margin.
Revenue was higher than both the preceding quarter and the same quarter one year earlier. Operating cash flow was lower than both comparison periods, and capital expenditure was lower than the prior quarter but similar to the year-ago level. Free cash flow moved from positive in both prior periods to negative in the current quarter.
Monitor operating cash flow recovery, as the filing notes that higher working capital outflows were a primary factor in the decline.
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 | $362.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | 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.