Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved from both the prior quarter and the year-ago quarter. The free cash flow margin strengthened sequentially from the prior quarter and improved versus the year-ago period.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, leading to free cash flow and free cash flow margin that were improved versus both comparison periods.
- Compared with the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$937.0M
Capital spending and related asset purchases.
FCF margin
24.2%
The share of revenue converted into free cash flow.
TTM FCF yield
3.3%
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 | $6.2B | $2.3B | $936.0M | $1.4B | 22.7% |
| 2025-09-30 | $6.2B | $2.5B | $950.0M | $1.6B | 25.2% |
| 2025-12-31 | $6.1B | $2.2B | $999.0M | $1.2B | 20.1% |
| 2026-03-31 | $6.2B | $2.4B | $937.0M | $1.5B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.1% | 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.
Strong Operating Cash Flow
Operating cash flow increased compared to both the prior quarter and the year-ago quarter. This was the primary factor supporting free cash flow improvement, as free cash flow also rose versus both periods.
The higher operating cash flow drove free cash flow and free cash flow margin higher despite a year-over-year increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, leading to free cash flow and free cash flow margin that were improved versus both comparison periods.
Compared with the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin were higher.
Monitor whether capital expenditure continues to be higher than the year-ago level, as it was in this quarter.
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 | $171.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.3% | 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.