Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow for the quarter improved from both the prior quarter and the same quarter last year, supported by higher operating cash flow. Cash conversion margin also strengthened slightly.
- Operating cash flow increased relative to revenue, while capital expenditure remained stable, resulting in higher free cash flow and an improved margin.
- Compared to the prior quarter, revenue was higher and operating cash flow improved, lifting free cash flow. Versus the same quarter a year ago, revenue was slightly lower, but operating cash flow was higher and capital expenditure was slightly lower, leading to a notable increase in free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.1B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $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% |
| 2025-09-30 | $44.3B | $7.1B | $2.1B | $5.0B | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 374.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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 Improvement
Operating cash flow increased both sequentially and year‑over‑year, providing the primary lift to free cash flow. Capital expenditure remained largely unchanged, allowing the improvement to flow through.
Sustained growth in operating cash flow underpins the current free cash flow margin trend.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, while capital expenditure remained stable, resulting in higher free cash flow and an improved margin.
Compared to the prior quarter, revenue was higher and operating cash flow improved, lifting free cash flow. Versus the same quarter a year ago, revenue was slightly lower, but operating cash flow was higher and capital expenditure was slightly lower, leading to a notable increase in free cash flow and margin.
Monitor whether capital expenditure stays within the planned full‑year range referenced in the filing.