Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened compared to both periods, as capital expenditure increased from the prior quarter while operating cash flow improved modestly.
- Operating cash flow as a proportion of revenue improved from the prior quarter, but capital expenditure rose, resulting in a lower free cash flow margin. Compared to the same quarter last year, operating cash flow was stable while revenue was higher, leading to a weaker conversion rate.
- Relative to the prior quarter, free cash flow was lower due to higher capital expenditure, despite slightly higher operating cash flow. Versus the same quarter last year, free cash flow was unchanged, but the margin declined as revenue grew.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
7.8%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $16.6B | $1.9B | $1.2B | $648.0M | 3.9% |
| 2025-09-30 | $16.7B | $1.8B | $1.2B | $687.0M | 4.1% |
| 2025-12-31 | $16.0B | $2.3B | $907.0M | $1.4B | 8.5% |
| 2026-03-31 | $15.9B | $2.4B | $1.2B | $1.2B | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -426.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | 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 Increase
Capital expenditure rose compared to the prior quarter, absorbing a larger share of operating cash flow.
This increase was the primary factor behind the decline in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved from the prior quarter, but capital expenditure rose, resulting in a lower free cash flow margin. Compared to the same quarter last year, operating cash flow was stable while revenue was higher, leading to a weaker conversion rate.
Relative to the prior quarter, free cash flow was lower due to higher capital expenditure, despite slightly higher operating cash flow. Versus the same quarter last year, free cash flow was unchanged, but the margin declined as revenue grew.
Monitor the trend in capital expenditure relative to operating cash flow.