Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved versus the prior quarter, reaching the same level as one year ago. Operating cash flow rose while capital expenditure decreased, driving the increase in free cash flow.
- Revenue was higher than both the prior quarter and the year-ago period. Operating cash flow grew more than revenue, contributing to a higher free cash flow margin compared to the prior quarter, while the margin was stable relative to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure slightly lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, while operating cash flow was marginally higher and capital expenditure was lower, resulting in an unchanged free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$496.0M
Capital spending and related asset purchases.
FCF margin
20.2%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $11.0B | $2.9B | $720.0M | $2.1B | 19.6% |
| 2025-03-31 | $10.4B | $1.4B | $484.0M | $933.0M | 9.0% |
| 2025-06-30 | $11.1B | $2.0B | $502.0M | $1.5B | 13.9% |
| 2025-09-30 | $11.4B | $2.8B | $496.0M | $2.3B | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 Improvement
Operating cash flow rose from the prior quarter, driven by higher segment operating earnings as noted in the filing. This increase, combined with a slight reduction in capital expenditure, led to a higher free cash flow.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago period. Operating cash flow grew more than revenue, contributing to a higher free cash flow margin compared to the prior quarter, while the margin was stable relative to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure slightly lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, while operating cash flow was marginally higher and capital expenditure was lower, resulting in an unchanged free cash flow margin.
Monitor changes in trade receivables and inventory, as the filing notes increases in both during the first nine months of the year.