Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved in the first quarter, with free cash flow higher than both the prior quarter and the same quarter a year ago. Operating cash flow increased while capital expenditure decreased compared with both periods.
- Revenue was lower than the preceding quarter but higher than a year earlier. Despite lower revenue sequentially, operating cash flow rose and capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin relative to both comparison periods.
- Compared with the previous quarter, revenue was lower while free cash flow and margin were higher. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.2B
Cash generated by operations before capital spending.
CapEx
$232.0M
Capital spending and related asset purchases.
FCF margin
31.0%
The share of revenue converted into free cash flow.
TTM FCF yield
6.4%
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 | $17.0B | $1.7B | $210.0M | $1.5B | 8.8% |
| 2025-09-30 | $16.3B | $3.1B | $255.0M | $2.8B | 17.3% |
| 2025-12-31 | $19.7B | $4.0B | $382.0M | $3.7B | 18.6% |
| 2026-03-31 | $15.9B | $5.2B | $232.0M | $4.9B | 31.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 406.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, contributing to the increase in free cash flow. The improvement occurred despite lower revenue sequentially.
The higher operating cash flow was the primary observable factor supporting the quarter's stronger free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than a year earlier. Despite lower revenue sequentially, operating cash flow rose and capital expenditure declined, resulting in a higher free cash flow and an improved free cash flow margin relative to both comparison periods.
Compared with the previous quarter, revenue was lower while free cash flow and margin were higher. Versus the same quarter one year ago, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor the trend in capital expenditure, which was lower in the current quarter than in both the prior quarter and the year-ago quarter.
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 | $202.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.4% | 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.