Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was essentially unchanged from the prior quarter, while free cash flow and its margin weakened considerably. Compared to a year earlier, both revenue and free cash flow improved, with the margin widening.
- Revenue remained stable, but operating cash flow fell relative to the previous quarter, leading to a lower free cash flow despite slightly reduced capital expenditure. The free cash flow margin narrowed sequentially but remained higher than the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and its margin declined, driven by a lower operating cash flow. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
8.0%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $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% |
| 2025-06-28 | $23.6B | $3.7B | $1.8B | $1.9B | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$36.9B | 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 Volatility
Operating cash flow decreased from the previous quarter, while revenue was nearly flat. This was the strongest observable driver of the lower free cash flow and the compression of the free cash flow margin.
The reduced operating cash flow compressed the free cash flow margin, highlighting a key area for attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable, but operating cash flow fell relative to the previous quarter, leading to a lower free cash flow despite slightly reduced capital expenditure. The free cash flow margin narrowed sequentially but remained higher than the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and its margin declined, driven by a lower operating cash flow. Versus the same quarter one year earlier, all metrics were higher, and the free cash flow margin widened.
Monitor operating cash flow trends, as the sequential decline was the primary factor behind the drop in free cash flow.