Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin improved relative to both the prior quarter and the same period last year, driven by higher revenue and operating cash flow. The company's liquidity sources remain supported by cash from operations and short-term investments.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin reflects the share of revenue converted to free cash flow after capital spending.
- Revenue, operating cash flow, capital expenditure, and free cash flow were all higher than in the previous quarter and the year-ago quarter. The free cash flow margin also improved compared to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 2024-11-24 | $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% |
| 2025-11-23 | $67.3B | $4.7B | $1.5B | $3.2B | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $10.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue increased compared to the prior quarter and the same quarter last year, providing a stronger base for cash generation.
Higher revenue contributed to the increase in operating cash flow and free cash flow.
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 reflects the share of revenue converted to free cash flow after capital spending.
Revenue, operating cash flow, capital expenditure, and free cash flow were all higher than in the previous quarter and the year-ago quarter. The free cash flow margin also improved compared to both periods.
Monitor the level of capital expenditure, which increased from both prior periods.