Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year-over-year due to higher operating cash flow, though it weakened sharply from the preceding quarter. The cash conversion rate declined sequentially as capital expenditure rose while revenue remained stable.
- With revenue essentially flat and operating cash flow lower than the prior quarter, free cash flow fell to a level far below the preceding quarter’s result. The free cash flow margin narrowed significantly from both the prior quarter and the year-ago quarter showed a narrower margin.
- Compared to the prior quarter, operating cash flow decreased while capital expenditure increased, causing free cash flow to drop substantially. Versus the same quarter one year earlier, operating cash flow rose and capital expenditure rose slightly, leading to a modest improvement in free cash flow.
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
$426.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$3.3B
Capital spending and related asset purchases.
FCF margin
3.1%
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 | $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% |
| 2025-12-31 | $13.6B | $3.8B | $3.3B | $426.0M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$94.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth Outpacing Cash Flow
Capital expenditure rose compared to the prior quarter while operating cash flow declined, resulting in the weakest free cash flow of the three periods shown. The free cash flow margin dropped sharply from the previous quarter.
Higher capital spending without a corresponding increase in operating cash flow compressed free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue essentially flat and operating cash flow lower than the prior quarter, free cash flow fell to a level far below the preceding quarter’s result. The free cash flow margin narrowed significantly from both the prior quarter and the year-ago quarter showed a narrower margin.
Compared to the prior quarter, operating cash flow decreased while capital expenditure increased, causing free cash flow to drop substantially. Versus the same quarter one year earlier, operating cash flow rose and capital expenditure rose slightly, leading to a modest improvement in free cash flow.
Monitor the relationship between operating cash flow and capital expenditure, as the increase in capital spending relative to cash generation constrained free cash flow in this quarter.