Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin widened significantly versus both comparable periods.
- Operating cash flow was substantially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin was notably above the levels of both comparison periods, reflecting a higher conversion rate of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved significantly. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
16.3%
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 | $17.5B | $3.5B | $1.2B | $2.3B | 13.3% |
| 2024-12-31 | $18.3B | $2.6B | $1.3B | $1.3B | 7.0% |
| 2025-03-31 | $18.3B | $1.7B | $991.0M | $660.0M | 3.6% |
| 2025-06-30 | $18.6B | $4.2B | $1.2B | $3.0B | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.8B | 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 Surge
Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, while capital expenditure was relatively stable. This drove a significant improvement in free cash flow and free cash flow margin.
The higher operating cash flow was the strongest observable driver of the period's free cash flow expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin was notably above the levels of both comparison periods, reflecting a higher conversion rate of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was higher, free cash flow was higher, and the free cash flow margin improved significantly. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved notably.
The relationship between operating cash flow and capital expenditure should be monitored for sustainability, as the current quarter's free cash flow was substantially above historical levels.