Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved both sequentially and versus the same quarter last year, supported by higher operating cash flow and lower capital expenditure year over year. Revenue was higher than the prior quarter but lower than the year-ago period.
- Operating cash flow increased compared to both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than a year earlier. The combination produced a free cash flow margin that strengthened from both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure also increased. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow improved, and capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.9B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
11.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $42.9B | $6.9B | $2.1B | $4.8B | 11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 251.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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.
Operating Cash Flow Strength
Operating cash flow increased both sequentially and year over year, providing the primary support for higher free cash flow. The improvement occurred alongside lower capital expenditure compared to the year-ago quarter, further boosting free cash flow generation.
Stronger operating cash flow allowed free cash flow margins to widen versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than a year earlier. The combination produced a free cash flow margin that strengthened from both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure also increased. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow improved, and capital expenditure decreased.
Monitor capital expenditure trends, as it rose from the prior quarter even though it declined year over year.