Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, free cash flow and margin fell sharply due to higher capital expenditure and lower operating cash flow relative to the prior quarter.
- Cash conversion weakened: operating cash flow declined sequentially while revenue rose, and free cash flow margin contracted to a low level.
- Compared to the prior quarter, operating cash flow and free cash flow decreased substantially, while capital expenditure was higher. Versus the same quarter a year ago, revenue and operating cash flow improved, but free cash flow was lower due to increased capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$70.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$934.0M
Cash generated by operations before capital spending.
CapEx
$864.0M
Capital spending and related asset purchases.
FCF margin
0.7%
The share of revenue converted into free cash flow.
TTM FCF yield
3.9%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $7.9B | $1.5B | $749.0M | $776.0M | 9.8% |
| 2025-09-30 | $8.6B | $1.6B | $804.0M | $820.0M | 9.5% |
| 2025-12-31 | $9.1B | $1.5B | $970.0M | $576.0M | 6.4% |
| 2026-03-31 | $9.6B | $934.0M | $864.0M | $70.0M | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.8B | 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 Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, significantly reducing free cash flow despite higher revenue.
If this level of spending continues, free cash flow may remain pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened: operating cash flow declined sequentially while revenue rose, and free cash flow margin contracted to a low level.
Compared to the prior quarter, operating cash flow and free cash flow decreased substantially, while capital expenditure was higher. Versus the same quarter a year ago, revenue and operating cash flow improved, but free cash flow was lower due to increased capital spending.
Monitor the trajectory of capital expenditure and its impact on free cash flow generation.
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 | $57.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 39.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.