Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased, leading to higher free cash flow and margin compared to both periods.
- The company converted a higher proportion of revenue into operating cash flow, resulting in improved free cash flow margin despite stable capital expenditure.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with margin improved. Versus the same quarter last year, all metrics were higher except capital expenditure which was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.5B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
3.7%
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 |
|---|---|---|---|---|---|
| 2024-05-12 | $58.5B | $3.0B | $1.1B | $1.9B | 3.3% |
| 2024-11-24 | $62.2B | $3.3B | $1.3B | $2.0B | 3.2% |
| 2025-02-16 | $63.7B | $2.7B | $1.1B | $1.6B | 2.5% |
| 2025-05-11 | $63.2B | $3.5B | $1.1B | $2.3B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $7.9B | 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 increased at a faster rate than revenue, driving the improvement in free cash flow margin.
This enabled a higher free cash flow generation for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow, resulting in improved free cash flow margin despite stable capital expenditure.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with margin improved. Versus the same quarter last year, all metrics were higher except capital expenditure which was stable.
Monitor the level of unsettled credit and debit card receivables, as they represent a significant portion of cash equivalents and may affect short-term cash flows.