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 prior quarter and higher than a year ago. Operating cash flow and free cash flow improved sequentially and year-over-year, with free cash flow margin strengthening.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the same quarter last year. After accounting for capital expenditure, free cash flow margin improved to a level above both comparison periods.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$991.0M
Capital spending and related asset purchases.
FCF margin
18.0%
The share of revenue converted into free cash flow.
TTM FCF yield
4.6%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $15.8B | $3.3B | $764.0M | $2.5B | 16.0% |
| 2025-09-30 | $17.3B | $7.8B | $987.0M | $6.8B | 39.6% |
| 2025-12-31 | $16.4B | $2.9B | $1.0B | $1.8B | 11.1% |
| 2026-03-31 | $16.3B | $3.9B | $991.0M | $2.9B | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.8B | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, contributing to a stronger free cash flow margin. The filing notes that cash from operations remains the primary source of funding.
Higher operating cash flow, combined with lower capital expenditure, resulted in free cash flow that was higher than both comparison periods.
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 higher than both the prior quarter and the same quarter last year. After accounting for capital expenditure, free cash flow margin improved to a level above both comparison periods.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
Monitor the level of capital expenditure relative to operating cash flow, as it was lower than 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 | $305.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 24.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.