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, driven by a substantial increase in operating cash flow. Although revenue declined from the prior quarter, the free cash flow margin improved markedly versus both the prior quarter and the same quarter last year.
- Revenue was lower than the previous quarter but above the year-ago level. Operating cash flow expanded considerably, more than offsetting a moderate capital expenditure increase from a year ago. As a result, free cash flow and free cash flow margin improved sharply versus both comparison periods.
- Compared with the immediately preceding quarter, revenue decreased but operating cash flow and free cash flow were significantly higher, causing the free cash flow margin to improve. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, capital expenditure (moderately), free cash flow, and margin all showed higher levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.2B
Cash generated by operations before capital spending.
CapEx
$397.0M
Capital spending and related asset purchases.
FCF margin
51.3%
The share of revenue converted into free cash flow.
TTM FCF yield
2.7%
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 | $9.1B | $367.0M | $173.0M | $194.0M | 2.1% |
| 2025-09-30 | $10.0B | $980.0M | $247.0M | $733.0M | 7.4% |
| 2025-12-31 | $11.0B | $2.5B | $671.0M | $1.8B | 16.5% |
| 2026-03-31 | $9.3B | $5.2B | $397.0M | $4.8B | 51.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 Surge
Operating cash flow was the strongest observable driver. It rose sharply from both the prior quarter and the year-ago period, far outpacing the change in revenue and capital expenditure.
The surge in operating cash flow directly elevated free cash flow and margin to levels well above recent history.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but above the year-ago level. Operating cash flow expanded considerably, more than offsetting a moderate capital expenditure increase from a year ago. As a result, free cash flow and free cash flow margin improved sharply versus both comparison periods.
Compared with the immediately preceding quarter, revenue decreased but operating cash flow and free cash flow were significantly higher, causing the free cash flow margin to improve. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, capital expenditure (moderately), free cash flow, and margin all showed higher levels.
Monitor the sustainability of the elevated operating cash flow level, as the quarter-on-quarter swing was pronounced.
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 | $275.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.7% | 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.