Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin improved compared to the same period last year but was lower than the prior quarter. The increase in revenue, as noted in the filing, was supported by operational growth and favorable foreign exchange.
- Operating cash flow and free cash flow were both higher than the year-ago quarter, while capital expenditure was lower, resulting in a higher free cash flow margin. Relative to the prior quarter, operating cash flow and free cash flow were lower, and the margin declined.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$436.0M
Capital spending and related asset purchases.
FCF margin
15.1%
The share of revenue converted into free cash flow.
TTM FCF yield
6.7%
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 | $14.7B | -$582.0M | $618.0M | -$1.2B | -8.2% |
| 2025-09-28 | $16.7B | $4.6B | $602.0M | $4.0B | 24.0% |
| 2025-12-31 | $17.6B | $5.3B | $845.0M | $4.5B | 25.6% |
| 2026-03-29 | $14.5B | $2.6B | $436.0M | $2.2B | 15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$62.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth with operational and foreign exchange support
The filing indicates that revenue increased from the prior year, driven by both operational performance and favorable foreign exchange effects.
This revenue growth provided a stronger base for cash generation compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were both higher than the year-ago quarter, while capital expenditure was lower, resulting in a higher free cash flow margin. Relative to the prior quarter, operating cash flow and free cash flow were lower, and the margin declined.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
The trend in operating cash flow relative to revenue will be a key indicator of cash conversion sustainability.
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 | $141.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 21.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.