Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held nearly stable relative to the prior quarter, but free cash flow swung from positive to negative as operating cash flow declined substantially. The free cash flow margin weakened versus both the prior quarter and the year-ago period.
- Operating cash flow fell sharply while capital expenditure rose modestly, resulting in negative free cash flow and a contraction in free cash flow margin. Revenue was essentially unchanged, so the deterioration in cash conversion was driven entirely by lower cash generation from operations.
- Compared with the immediately preceding quarter, operating cash flow was lower and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher and free cash flow was less negative, indicating an improvement in the year-over-year cash position despite the sequential decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$3.6B
Capital spending and related asset purchases.
FCF margin
-18.7%
The share of revenue converted into free cash flow.
TTM FCF yield
-0.6%
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $12.9B | $2.0B | $3.5B | -$1.5B | -11.7% |
| 2025-09-27 | $13.7B | $2.5B | $2.4B | $121.0M | 0.9% |
| 2025-12-27 | $13.7B | $4.3B | $3.5B | $800.0M | 5.9% |
| 2026-03-28 | $13.6B | $1.1B | $3.6B | -$2.5B | -18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.8B | 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 Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite a slight year-over-year revenue increase. This is the strongest observable pressure on free cash flow, as it reversed a positive free cash flow position from the prior quarter.
The weakened cash generation from operations turned free cash flow negative and compressed the margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell sharply while capital expenditure rose modestly, resulting in negative free cash flow and a contraction in free cash flow margin. Revenue was essentially unchanged, so the deterioration in cash conversion was driven entirely by lower cash generation from operations.
Compared with the immediately preceding quarter, operating cash flow was lower and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher and free cash flow was less negative, indicating an improvement in the year-over-year cash position despite the sequential decline.
Operating cash flow relative to capital expenditure, as the gap between the two widened considerably this 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 | $552.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | -0.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -185.9x | A quick valuation bridge, not a full DCF. |