Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened sequentially and year-over-year, reflecting higher cash generation relative to revenue.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as operating cash flow grew faster than revenue, while capital expenditure increased moderately.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.7B
Cash generated by operations before capital spending.
CapEx
$3.1B
Capital spending and related asset purchases.
FCF margin
18.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-06-30 | $30.3B | $7.8B | $2.7B | $5.1B | 16.9% |
| 2025-09-30 | $31.2B | $8.7B | $3.1B | $5.6B | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.8% | 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.
Operating Cash Flow Growth
Operating cash flow rose both sequentially and year-over-year, outpacing revenue growth and supporting a higher free cash flow margin.
This was the strongest observable driver of free cash flow improvement in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as operating cash flow grew faster than revenue, while capital expenditure increased moderately.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase this quarter partially offset cash conversion gains.