Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow rose, but capital expenditure increased more sharply, causing free cash flow to remain roughly flat and its margin to contract. Free cash flow was stable relative to the prior quarter and lower than the same period last year.
- Operating cash flow grew strongly with higher revenue, yet capital expenditure expanded even faster, so free cash flow barely changed and the free cash flow margin declined.
- Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure rose, and free cash flow was stable. Relative to the same quarter last year, revenue and operating cash flow improved, capital expenditure increased substantially, and free cash flow decreased slightly, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$73.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$52.4B
Cash generated by operations before capital spending.
CapEx
$27.9B
Capital spending and related asset purchases.
FCF margin
21.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $90.2B | $36.1B | $17.2B | $19.0B | 21.0% |
| 2025-06-30 | $96.4B | $27.7B | $22.4B | $5.3B | 5.5% |
| 2025-09-30 | $102.3B | $48.4B | $24.0B | $24.5B | 23.9% |
| 2025-12-31 | $113.8B | $52.4B | $27.9B | $24.6B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure rose substantially compared to both the prior quarter and the year-ago period, outpacing the growth in operating cash flow.
This trend compressed the free cash flow margin despite higher revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew strongly with higher revenue, yet capital expenditure expanded even faster, so free cash flow barely changed and the free cash flow margin declined.
Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure rose, and free cash flow was stable. Relative to the same quarter last year, revenue and operating cash flow improved, capital expenditure increased substantially, and free cash flow decreased slightly, resulting in a lower free cash flow margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its rapid growth is reducing free cash flow generation efficiency.