Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position one year earlier, though it was lower than the preceding quarter. Operating cash flow improved significantly year-over-year but decreased sequentially, while capital expenditure rose slightly.
- Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow as a proportion of revenue weakened sequentially but improved markedly from a year ago, driving a positive free cash flow margin compared to a negative margin one year earlier.
- Compared to the preceding quarter, free cash flow and operating cash flow were lower, and capital expenditure was higher. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$25.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$11.2B
Cash generated by operations before capital spending.
CapEx
$6.2B
Capital spending and related asset purchases.
FCF margin
8.0%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $59.4B | $10.9B | $4.3B | $6.6B | 11.2% |
| 2025-06-30 | $61.4B | $10.1B | $4.9B | $5.2B | 8.5% |
| 2025-09-30 | $63.7B | $13.8B | $5.6B | $8.2B | 12.9% |
| 2025-12-31 | $62.7B | $11.2B | $6.2B | $5.0B | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.9% | 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.
Strong year-over-year cash flow recovery
Operating cash flow was substantially higher than the same quarter last year, turning free cash flow from negative to positive. This was the strongest observable change among the supplied metrics.
The quarter achieved positive free cash flow after a negative result one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow as a proportion of revenue weakened sequentially but improved markedly from a year ago, driving a positive free cash flow margin compared to a negative margin one year earlier.
Compared to the preceding quarter, free cash flow and operating cash flow were lower, and capital expenditure was higher. Compared to the same quarter one year earlier, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
Monitor the trend in operating cash flow relative to revenue, as it weakened sequentially despite a year-over-year improvement.