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 was higher than a year ago but lower than the preceding quarter, resulting in a mixed cash conversion performance.
- Operating cash flow rose while capital expenditure increased more sharply than the prior quarter, causing free cash flow to decline sequentially despite higher revenue. The free cash flow margin weakened from the previous quarter but improved compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased and free cash flow was lower. Versus the same quarter one year earlier, all metrics were higher except capital expenditure, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$21.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.8B
Cash generated by operations before capital spending.
CapEx
$3.7B
Capital spending and related asset purchases.
FCF margin
15.8%
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 | $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% |
| 2025-12-31 | $32.3B | $8.8B | $3.7B | $5.1B | 15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 234.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | 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 strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing a solid base for cash generation. This was the strongest observable driver supporting free cash flow.
Higher operating cash flow partially offset the negative effect of increased capital expenditure on free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure increased more sharply than the prior quarter, causing free cash flow to decline sequentially despite higher revenue. The free cash flow margin weakened from the previous quarter but improved compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased and free cash flow was lower. Versus the same quarter one year earlier, all metrics were higher except capital expenditure, which was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as its increase this quarter reduced free cash flow despite higher revenue.