Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, lifting free cash flow and margin. Revenue was slightly lower than the preceding quarter but higher than the same quarter last year.
- Revenue was slightly lower than the prior quarter, yet operating cash flow rose substantially, resulting in a higher free cash flow margin. Capital expenditure was modest relative to operating cash flow, supporting strong cash conversion.
- Compared to the prior quarter, free cash flow and margin improved significantly, driven by higher operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, with revenue and operating cash flow both increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.6B
Cash generated by operations before capital spending.
CapEx
$324.0M
Capital spending and related asset purchases.
FCF margin
44.3%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $11.5B | $4.3B | $330.0M | $3.9B | 34.2% |
| 2024-03-31 | $11.9B | $2.8B | $284.0M | $2.5B | 21.5% |
| 2024-06-30 | $12.2B | $2.3B | $262.0M | $2.1B | 16.9% |
| 2024-09-30 | $11.9B | $5.6B | $324.0M | $5.3B | 44.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 434.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.7B | 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 Surge
Operating cash flow rose substantially from the prior quarter, more than offsetting a slight decline in revenue. This was the strongest observable driver of the improvement in free cash flow and margin.
The increase in operating cash flow directly lifted free cash flow and margin to levels higher than both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, yet operating cash flow rose substantially, resulting in a higher free cash flow margin. Capital expenditure was modest relative to operating cash flow, supporting strong cash conversion.
Compared to the prior quarter, free cash flow and margin improved significantly, driven by higher operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, with revenue and operating cash flow both increased.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.