Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially this quarter, with a much higher margin. The gain was driven by stronger operating cash flow and reduced capital spending.
- Operating cash flow increased while capital expenditure declined, leading to a more efficient conversion of revenue into free cash flow.
- Compared to the preceding quarter, revenue was slightly lower but free cash flow was markedly higher, with both operating cash flow improving and capital expenditure decreasing. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.1B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
10.6%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $44.1B | $6.0B | $2.6B | $3.4B | 7.7% |
| 2024-09-30 | $44.7B | $6.9B | $2.2B | $4.6B | 10.3% |
| 2024-12-31 | $43.6B | $4.1B | $3.2B | $907.0M | 2.1% |
| 2025-03-31 | $39.9B | $6.1B | $1.8B | $4.2B | 10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Stronger Operating Cash Flow
Operating cash flow rose compared to both the prior quarter and the year-ago period, providing the primary lift to free cash flow.
If operating cash flow remains at elevated levels, free cash flow generation should continue to be solid.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased while capital expenditure declined, leading to a more efficient conversion of revenue into free cash flow.
Compared to the preceding quarter, revenue was slightly lower but free cash flow was markedly higher, with both operating cash flow improving and capital expenditure decreasing. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow all improved.
Monitor capital expenditure trends, as the reduction in spending was a key factor behind the free cash flow improvement this quarter.