Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved strongly from both the prior quarter and the same quarter last year, driven by higher revenue conversion. Free cash flow margin widened meaningfully, reinforcing a solid cash generation profile.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, and capital expenditure was broadly stable, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow margin improved from a lower level to a higher level. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin was stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$212.0M
Capital spending and related asset purchases.
FCF margin
14.7%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $13.3B | $2.2B | $355.0M | $1.8B | 13.5% |
| 2025-03-30 | $12.2B | -$148.0M | $142.0M | -$290.0M | -2.4% |
| 2025-06-29 | $13.0B | $1.6B | $198.0M | $1.4B | 10.7% |
| 2025-09-28 | $12.9B | $2.1B | $212.0M | $1.9B | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 179.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 Expansion
Operating cash flow was materially higher than both the prior quarter and the year-ago quarter, with only a modest change in capital expenditure. This drove free cash flow higher and expanded the free cash flow margin.
The improvement in cash conversion was the most observable driver of the quarter's performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both periods, and capital expenditure was broadly stable, resulting in a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow margin improved from a lower level to a higher level. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin was stronger.
Monitor whether revenue can sustain the year-ago level while maintaining the higher cash conversion efficiency.