Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved significantly compared to both the prior quarter and the year-ago quarter, resulting in a much higher free cash flow margin.
- Operating cash flow was substantially higher than capital expenditure, yielding a free cash flow margin that was notably stronger than in either comparison period. The conversion of revenue into free cash flow improved markedly.
- Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were both higher, and capital expenditure was lower. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, though capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.8B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
20.7%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $23.2B | $2.6B | $1.4B | $1.2B | 5.3% |
| 2024-09-28 | $22.6B | $5.5B | $1.5B | $4.0B | 17.8% |
| 2024-12-28 | $24.7B | $3.2B | $2.5B | $739.0M | 3.0% |
| 2025-03-29 | $23.6B | $6.8B | $1.9B | $4.9B | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 149.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.0B | 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 Strength
Operating cash flow was the strongest observable driver, rising sharply from both the prior quarter and the year-ago quarter. This increase, combined with a lower capital expenditure relative to the prior quarter, drove free cash flow higher.
The improvement in operating cash flow 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 was substantially higher than capital expenditure, yielding a free cash flow margin that was notably stronger than in either comparison period. The conversion of revenue into free cash flow improved markedly.
Compared to the prior quarter, revenue was lower while operating cash flow and free cash flow were both higher, and capital expenditure was lower. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, though capital expenditure was also higher.
Monitor whether the elevated operating cash flow level can be sustained in subsequent quarters.