Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter, while free cash flow margin weakened slightly. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow all increased significantly, though margin was lower.
- Operating cash flow as a share of revenue was higher than in the same quarter a year ago, but lower than the prior quarter. Capital expenditure increased relative to the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was lower than both comparable periods.
- Compared to the immediately preceding quarter, revenue and free cash flow were lower. Relative to the same quarter one year earlier, all operating metrics were higher except for free cash flow margin, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$48.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$32.2B
Cash generated by operations before capital spending.
CapEx
$19.0B
Capital spending and related asset purchases.
FCF margin
23.5%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $47.5B | $25.6B | $16.5B | $9.0B | 19.0% |
| 2025-09-30 | $51.2B | $30.0B | $18.8B | $11.2B | 21.8% |
| 2025-12-31 | $59.9B | $36.2B | $21.4B | $14.8B | 24.8% |
| 2026-03-31 | $56.3B | $32.2B | $19.0B | $13.2B | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 33.7% | 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.
Capital Expenditure Growth
Capital expenditure was higher compared to both the prior quarter and the same quarter a year earlier. This increase was the strongest observable factor affecting free cash flow, as it consumed a larger portion of operating cash flow.
Higher capital expenditure reduced free cash flow despite a year-over-year increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in the same quarter a year ago, but lower than the prior quarter. Capital expenditure increased relative to the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was lower than both comparable periods.
Compared to the immediately preceding quarter, revenue and free cash flow were lower. Relative to the same quarter one year earlier, all operating metrics were higher except for free cash flow margin, which was lower.
The trajectory of capital expenditure relative to operating cash flow is a concrete item to monitor.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |