Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter after a negative prior quarter, driven by a sharp increase in operating cash flow. Revenue was slightly lower sequentially but higher year-over-year, while free cash flow margin improved versus both comparison periods.
- Operating cash flow rose substantially from the prior quarter, more than offsetting a moderate increase in capital expenditure, resulting in a large positive free cash flow. The free cash flow margin recovered to a level close to the year-ago quarter, reflecting improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow was significantly higher, capital expenditure was lower, and free cash flow swung from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were essentially stable, and free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.9B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
19.6%
The share of revenue converted into free cash flow.
TTM FCF yield
4.3%
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $23.6B | $3.7B | $1.8B | $1.9B | 8.0% |
| 2025-09-27 | $22.5B | $4.5B | $1.9B | $2.6B | 11.4% |
| 2025-12-27 | $26.0B | $735.0M | $3.0B | -$2.3B | -8.8% |
| 2026-03-28 | $25.2B | $6.9B | $2.0B | $4.9B | 19.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.7B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, reversing a period of weakness and driving the return to positive free cash flow. This was the strongest observable factor in the quarter's cash conversion performance.
The improvement in operating cash flow was the primary reason free cash flow turned positive and the margin recovered.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially from the prior quarter, more than offsetting a moderate increase in capital expenditure, resulting in a large positive free cash flow. The free cash flow margin recovered to a level close to the year-ago quarter, reflecting improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow was significantly higher, capital expenditure was lower, and free cash flow swung from negative to positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were essentially stable, and free cash flow margin was slightly lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.
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 | $166.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 29.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.