Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened significantly compared to both the prior quarter and the same quarter last year. Operating cash flow was substantially lower, while capital expenditure also decreased.
- Revenue was slightly lower than the prior quarter but higher than last year's same quarter. However, a substantially lower operating cash flow led to a weaker free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and its margin both weakened. Relative to the same quarter one year earlier, free cash flow declined despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
6.1%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 |
|---|---|---|---|---|---|
| 2025-06-29 | $23.7B | $3.9B | $1.0B | $2.8B | 11.9% |
| 2025-09-28 | $24.0B | $9.2B | $1.2B | $8.0B | 33.4% |
| 2025-12-28 | $24.6B | $7.3B | $1.8B | $5.5B | 22.3% |
| 2026-03-29 | $24.1B | $2.5B | $1.0B | $1.5B | 6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Decline in Operating Cash Flow
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, driving a sharp reduction in free cash flow.
This resulted in a free cash flow margin that was significantly lower compared to both periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than last year's same quarter. However, a substantially lower operating cash flow led to a weaker free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and its margin both weakened. Relative to the same quarter one year earlier, free cash flow declined despite higher revenue.
Monitor changes in accounts receivable and inventories, which increased during the quarter as noted in the filing.
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 | $603.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | 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.