Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow improved compared to both periods, driven by a higher operating cash flow and a lower capital expenditure.
- Operating cash flow as a percentage of revenue was higher than both the prior quarter and the year-ago quarter. With capital expenditure lower than both comparison periods, free cash flow margin improved significantly.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and free cash flow margin both improved. Compared to the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher; capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.3B
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
20.2%
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 | $29.7B | $4.7B | $2.7B | $2.0B | 6.7% |
| 2024-09-30 | $32.1B | $7.0B | $2.9B | $4.1B | 12.8% |
| 2024-12-31 | $31.9B | $8.1B | $3.9B | $4.2B | 13.1% |
| 2025-03-31 | $29.9B | $8.3B | $2.3B | $6.0B | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, which directly supported the improvement in free cash flow and free cash flow margin.
This was the strongest 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.
Operating cash flow as a percentage of revenue was higher than both the prior quarter and the year-ago quarter. With capital expenditure lower than both comparison periods, free cash flow margin improved significantly.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow and free cash flow margin both improved. Compared to the same quarter one year earlier, revenue was slightly lower, while operating cash flow, free cash flow, and free cash flow margin were all higher; capital expenditure was lower.
Monitor whether the lower capital expenditure level is sustained or reverts toward prior levels in upcoming quarters.