Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased and operating cash flow improved substantially compared to both the prior quarter and the year-ago quarter, leading to a higher free cash flow and a wider free cash flow margin. The quarter's cash conversion strengthened notably.
- Revenue was higher than in the prior quarter. Operating cash flow increased significantly, while capital expenditure rose modestly, resulting in a much higher free cash flow. The free cash flow margin improved from the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, operating cash flow and free cash flow were markedly higher, with free cash flow margin widening. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin was improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$784.0M
Capital spending and related asset purchases.
FCF margin
2.5%
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 | $94.6B | $4.6B | $743.0M | $3.8B | 4.0% |
| 2025-06-30 | $98.9B | $1.9B | $607.0M | $1.3B | 1.3% |
| 2025-09-30 | $102.9B | $796.0M | $698.0M | $98.0M | 0.1% |
| 2025-12-31 | $105.7B | $3.4B | $784.0M | $2.6B | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Improved Operating Cash Flow
Operating cash flow was higher than the preceding quarter and the same quarter last year, contributing to a stronger free cash flow generation.
Free cash flow and its margin improved significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in the prior quarter. Operating cash flow increased significantly, while capital expenditure rose modestly, resulting in a much higher free cash flow. The free cash flow margin improved from the prior quarter and the year-ago quarter.
Compared to the preceding quarter, operating cash flow and free cash flow were markedly higher, with free cash flow margin widening. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin was improved.
Monitor whether operating cash flow can sustain its higher level in future quarters.