Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow improved sequentially and weakened year-over-year, with the margin showing a similar pattern.
- Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter and the year-ago quarter. The resulting free cash flow was higher than the prior quarter but lower than the year-ago quarter, and the free cash flow margin improved sequentially but weakened year-over-year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.2B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
19.9%
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 | $21.1B | $7.0B | $2.4B | $4.6B | 21.7% |
| 2025-09-30 | $22.0B | $7.5B | $2.6B | $4.8B | 21.9% |
| 2025-12-31 | $24.3B | $6.7B | $2.5B | $4.2B | 17.2% |
| 2026-03-31 | $23.1B | $7.2B | $2.6B | $4.6B | 19.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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.
Operating Cash Flow Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supported by an increase in net income adjusted for non-cash items and a decrease in net cash outflows from working capital changes, as noted in the filing.
This was the strongest observable driver, as it enabled free cash flow to improve sequentially despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the prior quarter and the year-ago quarter. The resulting free cash flow was higher than the prior quarter but lower than the year-ago quarter, and the free cash flow margin improved sequentially but weakened year-over-year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow and free cash flow margin were lower.
Monitor the trend in free cash flow margin, which improved sequentially but declined year-over-year.
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 | $203.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 9.0% | 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.