Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter and moderately from a year ago, primarily due to a large drop in operating cash flow. Despite lower capital expenditure, the free cash flow margin weakened substantially.
- Revenue was lower than both the previous quarter and the same quarter last year. Operating cash flow decreased significantly, driving free cash flow down even as capital expenditure declined modestly. The free cash flow margin contracted sharply compared to the prior quarter and was also lower year-over-year.
- Compared with the immediately preceding quarter, free cash flow was lower, driven by a substantial reduction in operating cash flow, while capital expenditure was slightly lower. Versus the same quarter one year ago, free cash flow was lower, with operating cash flow down and capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$533.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $10.4B | $2.9B | $294.0M | $2.6B | 24.9% |
| 2025-09-28 | $11.3B | $4.0B | $407.0M | $3.6B | 31.8% |
| 2025-12-28 | $12.3B | $5.0B | $549.0M | $4.4B | 36.0% |
| 2026-03-29 | $10.6B | $2.4B | $533.0M | $1.9B | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.3B | 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 Decline
Operating cash flow was lower sequentially and year-over-year, while revenue also declined in both periods. The free cash flow margin dropped, reflecting a weakened cash conversion efficiency.
The drop in operating cash flow was the strongest observable driver of the lower free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the previous quarter and the same quarter last year. Operating cash flow decreased significantly, driving free cash flow down even as capital expenditure declined modestly. The free cash flow margin contracted sharply compared to the prior quarter and was also lower year-over-year.
Compared with the immediately preceding quarter, free cash flow was lower, driven by a substantial reduction in operating cash flow, while capital expenditure was slightly lower. Versus the same quarter one year ago, free cash flow was lower, with operating cash flow down and capital expenditure higher.
Monitor the trajectory of operating cash flow, as it was the primary factor behind the free cash flow decline in both comparisons.
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 | $187.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 15.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.