Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue and operating cash flow both increased, while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened relative to both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin notably higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$641.0M
Capital spending and related asset purchases.
FCF margin
43.0%
The share of revenue converted into free cash flow.
TTM FCF yield
9.0%
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 | $5.3B | $2.4B | $674.0M | $1.7B | 32.2% |
| 2025-09-30 | $5.5B | $2.3B | $727.0M | $1.6B | 28.4% |
| 2025-12-31 | $6.8B | $3.6B | $808.0M | $2.8B | 41.3% |
| 2026-03-31 | $7.3B | $3.8B | $641.0M | $3.1B | 43.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $3.7B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, providing the primary support for the improvement in free cash flow.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased, while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened relative to both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin notably higher.
Monitor the trend in capital expenditure, which decreased from 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 | $102.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 9.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 10.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.