Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply as operating cash flow declined considerably, despite slightly lower capital expenditure. Revenue was stable compared to the prior year but declined modestly from the previous quarter.
- Revenue remained broadly stable period over period, yet operating cash flow contracted significantly, leading to a much lower free cash flow and margin. Capital expenditure was reduced, but the drop in operating cash flow outpaced the capex reduction, compressing cash conversion.
- Compared to the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the free cash flow margin declined. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, with the margin narrowing notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
3.7%
The share of revenue converted into free cash flow.
TTM FCF yield
21.1%
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 | $42.9B | $6.9B | $2.1B | $4.8B | 11.1% |
| 2025-09-30 | $44.3B | $7.1B | $2.1B | $5.0B | 11.2% |
| 2025-12-31 | $41.0B | $6.8B | $3.2B | $3.6B | 8.7% |
| 2026-03-31 | $39.3B | $3.0B | $1.5B | $1.4B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Contraction
Operating cash flow decreased substantially relative to both prior periods, while revenue was largely flat. This contraction drove the majority of the decline in free cash flow and margin.
If operating cash flow remains weak, free cash flow generation could continue to be pressured even if capital expenditure stays reduced.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained broadly stable period over period, yet operating cash flow contracted significantly, leading to a much lower free cash flow and margin. Capital expenditure was reduced, but the drop in operating cash flow outpaced the capex reduction, compressing cash conversion.
Compared to the immediately preceding quarter, both operating cash flow and free cash flow were lower, and the free cash flow margin declined. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, with the margin narrowing notably.
Monitor whether operating cash flow can stabilize or improve in the coming quarters, as it was the primary factor behind the sharp decline in free cash flow.
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 | $70.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 21.1% | 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.