Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's operating cash flow improved from the previous quarter and was higher than the same quarter last year, while its revenue was slightly lower sequentially but stable year over year. Free cash flow margin strengthened compared to both the prior quarter and the year-ago quarter.
- Revenue was slightly lower sequentially and unchanged year over year, yet operating cash flow was significantly higher than the previous quarter and higher than the year-ago quarter. With capital expenditure higher than both comparison periods, free cash flow was substantially higher than the prior quarter and moderately higher than the year-ago quarter, resulting in an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow margin improved as operating cash flow increased more than capital expenditure. Versus the same quarter one year earlier, the free cash flow margin strengthened due to higher operating cash flow and a relatively smaller increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5B
Cash generated by operations before capital spending.
CapEx
$3.1B
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $13.9B | $3.5B | $3.1B | $398.0M | 2.9% |
| 2025-03-31 | $13.7B | $4.2B | $2.4B | $1.8B | 13.4% |
| 2025-06-30 | $13.8B | $3.6B | $2.9B | $726.0M | 5.3% |
| 2025-09-30 | $13.7B | $4.5B | $3.1B | $1.4B | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$94.7B | 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 Growth
Operating cash flow was the strongest observable driver, increasing notably from the previous quarter and also higher than the year-ago quarter. This gain occurred even as revenue was slightly lower sequentially, suggesting a shift in the cash conversion pattern within the quarter.
The higher operating cash flow directly supported a stronger free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower sequentially and unchanged year over year, yet operating cash flow was significantly higher than the previous quarter and higher than the year-ago quarter. With capital expenditure higher than both comparison periods, free cash flow was substantially higher than the prior quarter and moderately higher than the year-ago quarter, resulting in an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow margin improved as operating cash flow increased more than capital expenditure. Versus the same quarter one year earlier, the free cash flow margin strengthened due to higher operating cash flow and a relatively smaller increase in capital expenditure.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.