Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year-over-year. Free cash flow improved versus both the prior quarter and the same quarter one year earlier, with free cash flow margin reaching its highest level among the three periods.
- Although operating cash flow decreased from the preceding quarter, capital expenditure declined proportionally more, resulting in a higher free cash flow. Compared with the year-ago quarter, operating cash flow and free cash flow both increased, while capital expenditure rose moderately.
- Compared with the immediately preceding quarter, revenue and operating cash flow were lower, but lower capital expenditure led to slightly higher free cash flow and an improved margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$895.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
4.7%
The share of revenue converted into free cash flow.
TTM FCF yield
9.5%
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 | $18.6B | $4.2B | $1.2B | $3.0B | 16.3% |
| 2025-09-30 | $19.2B | $4.4B | $1.3B | $3.1B | 16.3% |
| 2025-12-31 | $19.5B | $2.4B | $1.5B | $870.0M | 4.5% |
| 2026-03-31 | $19.1B | $2.0B | $1.1B | $895.0M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved cash generation efficiency
Free cash flow rose sequentially and year-over-year despite a sequential drop in revenue. The free cash flow margin improved in both comparisons, indicating a more efficient conversion of revenue into free cash flow.
The company generated more free cash flow on each dollar of revenue compared with the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Although operating cash flow decreased from the preceding quarter, capital expenditure declined proportionally more, resulting in a higher free cash flow. Compared with the year-ago quarter, operating cash flow and free cash flow both increased, while capital expenditure rose moderately.
Compared with the immediately preceding quarter, revenue and operating cash flow were lower, but lower capital expenditure led to slightly higher free cash flow and an improved margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
Monitor the free cash flow margin trajectory given the sequential decline in revenue and operating 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 | $83.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 9.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 16.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.