Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to the prior quarter, but free cash flow remained unchanged, resulting in a slightly lower free cash flow margin. Compared to the same quarter last year, both revenue and free cash flow were lower, and the margin also weakened. The filing notes that cash and equivalents increased from the prior year-end and that operating cash flow for the first nine months was higher than the year-ago period, while capital spending was in line.
- Operating cash flow improved compared to the previous quarter, though capital spending also increased. Free cash flow remained steady, causing the margin to narrow.
- Compared to the immediately preceding quarter, revenue and operating cash flow improved, but capital expenditure increased more sharply, resulting in flat free cash flow and a lower margin. Versus the same quarter one year earlier, all metrics except capital expenditure were weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.4B
Cash generated by operations before capital spending.
CapEx
$4.4B
Capital spending and related asset purchases.
FCF margin
10.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $48.2B | $9.4B | $4.4B | $4.9B | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.2% | 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.
Revenue growth and capital spending balance
Revenue rose from the prior quarter, driving higher operating cash flow. However, capital expenditure increased by a larger amount, leaving free cash flow unchanged.
The unchanged free cash flow indicates that the company's cash conversion efficiency weakened slightly due to higher investment spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved compared to the previous quarter, though capital spending also increased. Free cash flow remained steady, causing the margin to narrow.
Compared to the immediately preceding quarter, revenue and operating cash flow improved, but capital expenditure increased more sharply, resulting in flat free cash flow and a lower margin. Versus the same quarter one year earlier, all metrics except capital expenditure were weaker.
Monitor the relationship between capital expenditure and operating cash flow, as higher spending this quarter offset revenue gains.