Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter one year earlier, but free cash flow turned negative as operating cash flow weakened sharply. Capital expenditure increased relative to both the prior quarter and the year-ago quarter, contributing to the cash flow decline.
- Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the same quarter last year, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, causing free cash flow to be negative.
- Compared to the prior quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was similar, but operating cash flow and free cash flow were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$291.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$220.0M
Cash generated by operations before capital spending.
CapEx
$511.0M
Capital spending and related asset purchases.
FCF margin
-1.6%
The share of revenue converted into free cash flow.
TTM FCF yield
4.8%
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 | $18.2B | $201.0M | $351.0M | -$150.0M | -0.8% |
| 2025-09-28 | $18.6B | $3.7B | $381.0M | $3.3B | 18.0% |
| 2025-12-31 | $20.3B | $3.2B | $463.0M | $2.8B | 13.6% |
| 2026-03-29 | $18.0B | $220.0M | $511.0M | -$291.0M | -1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -19.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.8B | 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 Weakness
Operating cash flow was significantly lower than both the prior quarter and the year-ago quarter, despite revenue being stable year over year. This decline was the strongest observable driver of the negative free cash flow.
The weakened operating cash flow, combined with higher capital expenditure, resulted in a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the same quarter last year, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, causing free cash flow to be negative.
Compared to the prior quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was similar, but operating cash flow and free cash flow were both lower.
Monitor whether operating cash flow recovers toward historical levels, as it was the primary factor behind the negative free 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 | $118.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 24.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.