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 decreased from the prior quarter and the year-ago quarter, as capital expenditure rose sharply. The free cash flow margin narrowed significantly compared with both periods.
- Revenue was lower sequentially but higher than a year ago. Operating cash flow decreased versus both periods, and the free cash flow margin contracted because capital expenditure consumed a much larger share of operating cash flow.
- Compared with the preceding quarter, operating cash flow was lower and capital expenditure was higher, resulting in a smaller free cash flow and a lower margin. Versus the same quarter last year, operating cash flow improved modestly, but a far larger capital expenditure caused free cash flow to decline and margin to weaken.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$64.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$10.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$45.8B
Cash generated by operations before capital spending.
CapEx
$35.7B
Capital spending and related asset purchases.
FCF margin
9.2%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $96.4B | $27.7B | $22.4B | $5.3B | 5.5% |
| 2025-09-30 | $102.3B | $48.4B | $24.0B | $24.5B | 23.9% |
| 2025-12-31 | $113.8B | $52.4B | $27.9B | $24.6B | 21.6% |
| 2026-03-31 | $109.9B | $45.8B | $35.7B | $10.1B | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure rose substantially from both the prior quarter and the year-ago period, outpacing the change in operating cash flow. This shift was the most prominent observable factor behind the decline in free cash flow and margin.
The higher capital expenditure directly reduced free cash flow and compressed the free cash flow margin compared with both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially but higher than a year ago. Operating cash flow decreased versus both periods, and the free cash flow margin contracted because capital expenditure consumed a much larger share of operating cash flow.
Compared with the preceding quarter, operating cash flow was lower and capital expenditure was higher, resulting in a smaller free cash flow and a lower margin. Versus the same quarter last year, operating cash flow improved modestly, but a far larger capital expenditure caused free cash flow to decline and margin to weaken.
Monitor whether capital expenditure remains at the current elevated level in relation to operating cash flow, as this directly pressures free cash flow generation.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |