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 was higher than the same period last year but lower than the prior quarter. The free cash flow margin remained stable compared with the year-ago level, while revenue and operating cash flow both increased year over year.
- Revenue decreased from the prior quarter but increased from a year ago. Operating cash flow followed a similar pattern and was higher year over year, while capital expenditure increased compared with the year-ago period. As a result, free cash flow declined sequentially but improved relative to last year, and the margin was essentially unchanged from the prior year's quarter.
- Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, while margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
14.3%
The share of revenue converted into free cash flow.
TTM FCF yield
4.4%
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 | $20.9B | $5.0B | $996.0M | $4.0B | 19.1% |
| 2025-09-30 | $22.4B | $5.4B | $1.2B | $4.2B | 18.8% |
| 2025-12-31 | $22.2B | $5.0B | $1.2B | $3.8B | 17.1% |
| 2026-03-31 | $21.2B | $4.0B | $1.0B | $3.0B | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Year-over-Year Cash Flow Growth
Operating cash flow and free cash flow both increased versus the prior year, supported by higher revenue. The free cash flow margin remained stable, indicating consistent cash conversion efficiency.
This year-over-year improvement in cash generation provides a stronger base for the company's capital allocation decisions.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter but increased from a year ago. Operating cash flow followed a similar pattern and was higher year over year, while capital expenditure increased compared with the year-ago period. As a result, free cash flow declined sequentially but improved relative to last year, and the margin was essentially unchanged from the prior year's quarter.
Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all were lower. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, while margin was stable.
Monitor capital expenditure levels, as they rose year over year but declined sequentially, which may influence future 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 | $344.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.