Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply in the current quarter compared to both the prior quarter and the same quarter a year ago. The decline was driven by a significant reduction in operating cash flow despite higher revenue.
- Revenue increased from the prior quarter, yet operating cash flow decreased substantially, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter, but the cash conversion from revenue to free cash flow weakened.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, with margin declining. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$383.0M
Capital spending and related asset purchases.
FCF margin
23.4%
The share of revenue converted into free cash flow.
TTM FCF yield
12.7%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $10.2B | $6.7B | $421.0M | $6.3B | 62.0% |
| 2025-09-30 | $10.7B | $6.2B | $389.0M | $5.8B | 54.5% |
| 2025-12-31 | $10.9B | $6.8B | $378.0M | $6.4B | 58.7% |
| 2026-03-31 | $11.2B | $3.0B | $383.0M | $2.6B | 23.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.6B | 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 decreased significantly from both the prior quarter and the year-ago quarter, despite higher revenue. This is the most observable factor behind the weaker free cash flow and margin.
The lower operating cash flow directly drove the reduction in free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, yet operating cash flow decreased substantially, resulting in lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly higher than the prior quarter, but the cash conversion from revenue to free cash flow weakened.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were both lower, with margin declining. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as the divergence observed this quarter may affect sustainable cash 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 | $166.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 12.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 8.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.