Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose from a year ago. Operating cash flow improved sequentially and year-over-year, leading to free cash flow that was stable sequentially and higher year-over-year.
- Operating cash flow as a percentage of revenue increased, resulting in a higher free cash flow margin. The conversion of revenue into cash improved compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, keeping free cash flow unchanged. Versus the year-ago quarter, all metrics improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
6.5%
The share of revenue converted into free cash flow.
TTM FCF yield
0.5%
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 | $22.5B | $2.5B | $2.4B | $146.0M | 0.6% |
| 2025-09-30 | $28.1B | $6.2B | $2.2B | $4.0B | 14.2% |
| 2025-12-31 | $24.9B | $3.8B | $2.4B | $1.4B | 5.7% |
| 2026-03-31 | $22.4B | $3.9B | $2.5B | $1.4B | 6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 302.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $9.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
The free cash flow margin was higher than the prior quarter and the year-ago quarter, as operating cash flow increased while capital expenditure also rose.
The higher margin indicates improved efficiency in converting revenue into free cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue increased, resulting in a higher free cash flow margin. The conversion of revenue into cash improved compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, keeping free cash flow unchanged. Versus the year-ago quarter, all metrics improved significantly.
Capital expenditure increased both sequentially and year-over-year; its trend relative to operating cash flow warrants attention.
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 | $1.5T | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 217.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
GM
General Motors Company
FCF margin
3.7%
FCF yield
21.0%
F
Ford Motor Company
FCF margin
-2.5%
FCF yield
18.3%