Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter a year earlier, supported by lower capital expenditure relative to operating cash flow. The free cash flow margin was higher than in both comparison periods.
- The company generated operating cash flow that exceeded capital expenditure, producing a positive free cash flow. The resulting free cash flow margin was higher than both the prior quarter and the same quarter a year earlier.
- Compared to the prior quarter, revenue was slightly lower and operating cash flow decreased, but capital expenditure declined more sharply, leading to a higher free cash flow. Relative to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin showing a notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$851.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$650.0M
Capital spending and related asset purchases.
FCF margin
13.7%
The share of revenue converted into free cash flow.
TTM FCF yield
3.5%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.5B | Cash generated by operations before capital spending. |
| Capital expenditures | $650.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $851.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.0B | $1.0B | $550.0M | $497.0M | 9.9% |
| 2022-09-30 | $5.1B | $1.2B | $757.0M | $425.0M | 8.4% |
| 2022-12-31 | $4.9B | $1.0B | $862.0M | $187.0M | 3.8% |
| 2023-03-31 | $4.9B | $1.0B | $660.0M | $384.0M | 7.8% |
| 2023-06-30 | $5.1B | $1.0B | $520.0M | $510.0M | 10.0% |
| 2023-09-30 | $5.2B | $1.3B | $673.0M | $590.0M | 11.4% |
| 2023-12-31 | $5.2B | $1.4B | $1.0B | $340.0M | 6.5% |
| 2024-03-31 | $5.2B | $1.4B | $668.0M | $699.0M | 13.5% |
| 2024-06-30 | $5.4B | $1.2B | $667.0M | $487.0M | 9.0% |
| 2024-09-30 | $5.6B | $1.4B | $781.0M | $577.0M | 10.3% |
| 2024-12-31 | $5.9B | $1.5B | $1.1B | $396.0M | 6.7% |
| 2025-03-31 | $6.0B | $1.2B | $831.0M | $377.0M | 6.3% |
| 2025-06-30 | $6.4B | $1.5B | $732.0M | $813.0M | 12.6% |
| 2025-09-30 | $6.4B | $1.6B | $776.0M | $816.0M | 12.7% |
| 2025-12-31 | $6.3B | $1.7B | $888.0M | $810.0M | 12.8% |
| 2026-03-31 | $6.2B | $1.5B | $650.0M | $851.0M | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.4% | 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.
Free cash flow improvement
The current quarter's free cash flow benefited from operating cash flow that was higher than a year ago while capital expenditure was lower, resulting in a significantly improved free cash flow margin compared to the year-ago quarter.
This strengthened the company's cash generation capacity relative to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated operating cash flow that exceeded capital expenditure, producing a positive free cash flow. The resulting free cash flow margin was higher than both the prior quarter and the same quarter a year earlier.
Compared to the prior quarter, revenue was slightly lower and operating cash flow decreased, but capital expenditure declined more sharply, leading to a higher free cash flow. Relative to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin showing a notable improvement.
The level of future share repurchases under the remaining board authorization, as disclosed in the filing.
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 | $93.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.5% | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |