Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined from the prior quarter, while free cash flow margin weakened. Compared to the same quarter last year, revenue was higher and free cash flow margin was broadly stable.
- Operating cash flow as a proportion of revenue decreased from the prior quarter, leading to a lower free cash flow margin. Capital expenditure was also lower, but the decline in operating cash flow was the primary factor in the reduced cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were broadly similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$237.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 |
|---|---|---|---|---|---|
| 2025-06-27 | $5.9B | $1.3B | $248.0M | $1.1B | 18.4% |
| 2025-09-26 | $6.1B | $1.7B | $292.0M | $1.4B | 22.6% |
| 2025-12-31 | $6.8B | $2.1B | $371.0M | $1.7B | 25.5% |
| 2026-03-27 | $6.0B | $1.3B | $237.0M | $1.1B | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 decreased from the prior quarter, while revenue also declined. This combination drove the reduction in free cash flow and free cash flow margin.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow margin this quarter.
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 decreased from the prior quarter, leading to a lower free cash flow margin. Capital expenditure was also lower, but the decline in operating cash flow was the primary factor in the reduced cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were broadly similar.
Monitor whether operating cash flow can sustain its level relative to revenue, as it was the primary factor behind the quarter's free cash flow margin.
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 | $140.9B | 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.