Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to the prior quarter and the same quarter last year. The free cash flow margin remained stable sequentially but improved relative to the year-ago period.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was stable sequentially, indicating consistent cash conversion efficiency.
- Compared to the prior quarter, revenue and free cash flow were higher, while the margin was unchanged. Versus the same quarter a year ago, all metrics were higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$1.3B
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $19.2B | $4.4B | $1.3B | $3.1B | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Growth in Operating Cash Flow
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, supported by higher net income and a decline in income tax payments as noted in the filing.
The increase in operating cash flow directly contributed to the higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was stable sequentially, indicating consistent cash conversion efficiency.
Compared to the prior quarter, revenue and free cash flow were higher, while the margin was unchanged. Versus the same quarter a year ago, all metrics were higher and the margin improved.
Monitor the impact of the negative working capital position, which the filing attributes primarily to increased short-term borrowings and other accrued expenses.