Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin improved significantly compared to both the prior quarter and the same quarter last year, driven by stronger operating cash flow despite lower revenue. The company's cash conversion from revenue to free cash flow strengthened.
- Operating cash flow as a proportion of revenue was higher than in the preceding periods, leading to a free cash flow margin that expanded from the prior quarter and the year-ago quarter after capital expenditure remained relatively stable.
- Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier, but operating cash flow was higher in both comparisons, resulting in a higher free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.6B
Cash generated by operations before capital spending.
CapEx
$3.7B
Capital spending and related asset purchases.
FCF margin
11.0%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $48.9B | $9.7B | $4.1B | $5.6B | 11.5% |
| 2024-12-31 | $48.3B | $8.7B | $4.3B | $4.4B | 9.0% |
| 2025-03-31 | $46.1B | $5.2B | $3.9B | $1.3B | 2.7% |
| 2025-06-30 | $44.4B | $8.6B | $3.7B | $4.9B | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | 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 generation
Operating cash flow increased from the prior quarter and the year-ago quarter, even as revenue declined, indicating a stronger cash conversion efficiency.
This improvement was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than in the preceding periods, leading to a free cash flow margin that expanded from the prior quarter and the year-ago quarter after capital expenditure remained relatively stable.
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier, but operating cash flow was higher in both comparisons, resulting in a higher free cash flow and margin.
Monitor the trend in capital expenditure, which was slightly lower than in both comparison periods.