Revenue for the twelve months to Q3 2026 stood at $44.13 billion, a decline of 0.9% compared to the prior year. This growth rate represents a drop of 3.5 percentage points from the rate recorded a quarter earlier.

Capital spending fell 17.7% over the period. Operating cash flow declined by 32.0%.

The trailing gross margin was 12.6%. The trailing operating margin fell to 0.4%, down 2.6 percentage points from a year earlier. The trailing net margin turned negative, standing at −0.1%. This resulted in a net loss of $48.0 million over the twelve months.

Operating cash flow over the twelve months was $331.0 million, down 32.0% on the year before. Capital spending totaled $93.0 million, which is 0.2% of revenue. Subtracting capital spending from operating cash flow yields free cash flow of $238.0 million. This figure is down 36.5% on the year before. Despite the absolute decline, the free-cash-flow margin improved to 0.5% of revenue. This is up 1.8 percentage points from a year earlier. The average diluted share count fell 6.1% over the year.

In context

Current performance sits near the lower end of historical ranges. Today’s free-cash-flow margin of 0.5% is higher than 21% of the company’s own past quarterly readings. Those historical readings have ranged from −2.9% to 10.8%. Today’s operating margin of 0.4% is higher than 10% of the company’s own past quarterly readings. Those historical readings have ranged from −2.8% to 6.8%. Today’s twelve-month revenue growth rate of −0.9% is higher than 12% of the company’s own past quarterly readings. Those historical readings have ranged from −10.9% to 54.1%.

Guidance

The company has maintained its targets for the full year. Full year 2026 guidance for premium revenue remains at $42.0 billion. Full year 2026 guidance for adjusted earnings per diluted share remains at $5.25.

What it means for value

Our model shows high sensitivity to growth assumptions. A decrease in growth by 5 percentage points would lower the value by 22.8%. An increase in growth by 5 percentage points would raise the value by 30.0%.

What to watch

The next filing will clarify whether the decline in operating cash flow continues. It will also show if capital spending remains low relative to revenue. Investors should look for changes in the net margin to see if the loss persists.