Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sharply versus the prior quarter and the year-ago quarter. The free cash flow margin strengthened significantly, reflecting a higher conversion of revenue into cash.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from both periods, and capital expenditure decreased versus the prior quarter while rising slightly from a year ago. The resulting free cash flow and free cash flow margin were markedly higher than both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure moderately higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$203.0M
Capital spending and related asset purchases.
FCF margin
14.5%
The share of revenue converted into free cash flow.
TTM FCF yield
6.3%
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 |
|---|---|---|---|---|---|
| 2025-06-29 | $13.0B | $1.6B | $198.0M | $1.4B | 10.7% |
| 2025-09-28 | $12.9B | $2.1B | $212.0M | $1.9B | 14.7% |
| 2025-12-31 | $14.4B | $1.6B | $609.0M | $952.0M | 6.6% |
| 2026-04-05 | $13.5B | $2.2B | $203.0M | $2.0B | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving a significant increase in free cash flow despite lower revenue sequentially.
The strong operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from both periods, and capital expenditure decreased versus the prior quarter while rising slightly from a year ago. The resulting free cash flow and free cash flow margin were markedly higher than both comparison periods.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure moderately higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter's lower capex contributed to the free cash flow improvement.
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 | $98.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 16.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.