Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly this quarter, with free cash flow turning strongly positive after a negative prior quarter. Revenue rose slightly compared with both the prior quarter and the same quarter last year.
- Free cash flow margin strengthened to a positive figure, supported by operating cash flow that was substantially higher than both the preceding quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved significantly. Versus the same quarter one year earlier, all three metrics were also higher, though the improvement was less pronounced from the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.3B
Cash generated by operations before capital spending.
CapEx
$235.0M
Capital spending and related asset purchases.
FCF margin
8.2%
The share of revenue converted into free cash flow.
TTM FCF yield
7.0%
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 | $49.8B | $2.1B | $267.0M | $1.8B | 3.6% |
| 2025-09-30 | $50.7B | $1.1B | $360.0M | $775.0M | 1.5% |
| 2025-12-31 | $49.7B | $84.0M | $293.0M | -$209.0M | -0.4% |
| 2026-03-31 | $50.2B | $4.3B | $235.0M | $4.1B | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 232.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.5B | 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 rose substantially from both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin.
This was the strongest observable driver, as it directly transformed free cash flow from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow margin strengthened to a positive figure, supported by operating cash flow that was substantially higher than both the preceding quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved significantly. Versus the same quarter one year earlier, all three metrics were also higher, though the improvement was less pronounced from the year-ago level.
Monitor whether the elevated operating cash flow can be sustained in subsequent quarters given the large swing from the prior period.
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 | $92.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 17.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.