Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior quarter and the same quarter last year, yet operating cash flow was higher, leading to improved free cash flow and free cash flow margin. Capital expenditure rose from both comparison periods, but the increase in cash generation more than offset the higher spending.
- Operating cash flow as a proportion of revenue was higher than in the preceding quarter and the year-ago quarter, resulting in a stronger free cash flow margin despite moderately higher capital expenditure.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were both higher, yielding an improved margin. Relative to the same quarter one year earlier, revenue was also lower while operating cash flow and free cash flow were again higher, with the margin strengthening from the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.8B
Cash generated by operations before capital spending.
CapEx
$5.3B
Capital spending and related asset purchases.
FCF margin
12.1%
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 | $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% |
| 2025-12-31 | $45.8B | $10.8B | $5.3B | $5.5B | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.5% | 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.
Operating cash flow uplift
Operating cash flow increased from both the prior quarter and the year-ago quarter, even as revenue declined. This improvement was the primary factor behind the higher free cash flow and margin.
The company converted a lower revenue base into higher free cash flow, strengthening its cash conversion efficiency.
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 quarter and the year-ago quarter, resulting in a stronger free cash flow margin despite moderately higher capital expenditure.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were both higher, yielding an improved margin. Relative to the same quarter one year earlier, revenue was also lower while operating cash flow and free cash flow were again higher, with the margin strengthening from the year-ago level.
Monitor the trajectory of capital expenditure, which rose from both the prior quarter and the year-ago quarter, to assess whether cash generation continues to outpace spending.