Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by a higher operating cash flow and lower capital spending. The free cash flow margin also strengthened relative to those periods.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow increased relative to both periods, and capital expenditure decreased, resulting in a higher free cash flow and a stronger free cash flow margin.
- Compared to the prior quarter, free cash flow was higher, and the margin improved. Versus the same quarter one year earlier, free cash flow was also higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$907.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $14.0B | $2.4B | $1.2B | $1.2B | 8.2% |
| 2025-06-30 | $16.6B | $1.9B | $1.2B | $648.0M | 3.9% |
| 2025-09-30 | $16.7B | $1.8B | $1.2B | $687.0M | 4.1% |
| 2025-12-31 | $16.0B | $2.3B | $907.0M | $1.4B | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | 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 Improvement
Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower in both comparisons. The combination of higher cash generation and reduced investment led to a higher free cash flow and an improved margin.
This driver was the primary factor behind the quarter's stronger free cash flow and margin, both sequentially and year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow increased relative to both periods, and capital expenditure decreased, resulting in a higher free cash flow and a stronger free cash flow margin.
Compared to the prior quarter, free cash flow was higher, and the margin improved. Versus the same quarter one year earlier, free cash flow was also higher and the margin strengthened.
Monitor the level of capital expenditure, as it was lower in the current quarter.