Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially from both the prior quarter and the year-ago quarter, driven by stronger cash generation in the current period. The free cash flow margin widened as operating cash flow rose while capital expenditure declined.
- Revenue remained stable while operating cash flow increased, leading to higher cash conversion. With capital expenditure reduced, free cash flow expanded and free cash flow margin rose compared to both the prior and year-ago quarters.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was significantly higher. Versus the same quarter one year earlier, revenue was similar, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
13.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $13.7B | $3.9B | $2.9B | $1.0B | 7.3% |
| 2024-09-30 | $13.8B | $3.9B | $2.6B | $1.3B | 9.7% |
| 2024-12-31 | $13.9B | $3.5B | $3.1B | $398.0M | 2.9% |
| 2025-03-31 | $13.7B | $4.2B | $2.4B | $1.8B | 13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$93.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, while revenue was stable. This improvement, combined with lower capital expenditure, drove a significant rise in free cash flow and margin.
The higher operating cash flow was the primary observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable while operating cash flow increased, leading to higher cash conversion. With capital expenditure reduced, free cash flow expanded and free cash flow margin rose compared to both the prior and year-ago quarters.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was significantly higher. Versus the same quarter one year earlier, revenue was similar, operating cash flow was higher, capital expenditure was lower, and free cash flow was substantially higher.
Monitor whether the reduced level of capital expenditure persists, as it was a key factor in the improved free cash flow this quarter.