Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as free cash flow margin rose to a level higher than both prior periods. Operating cash flow increased while revenue declined sequentially, leading to a stronger cash generation rate.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially compared to both periods, and capital expenditure rose moderately. The resulting free cash flow and margin were higher than both comparisons.
- Compared to the immediately preceding quarter, free cash flow margin improved significantly, driven by a large increase in operating cash flow despite lower revenue. Versus the same quarter last year, both operating cash flow and free cash flow margin were higher, with revenue also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$374.0M
Capital spending and related asset purchases.
FCF margin
28.0%
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 | $9.2B | $2.3B | $100.0M | $2.2B | 23.8% |
| 2025-03-31 | $8.9B | $597.0M | $190.0M | $407.0M | 4.6% |
| 2025-06-30 | $11.2B | $1.3B | $364.0M | $955.0M | 8.5% |
| 2025-09-30 | $10.4B | $3.3B | $374.0M | $2.9B | 28.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.2B | 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 rose markedly from the prior quarter and the year-ago quarter, more than offsetting a sequential revenue decline and a moderate increase in capital spending.
This drove free cash flow margin to a level higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially compared to both periods, and capital expenditure rose moderately. The resulting free cash flow and margin were higher than both comparisons.
Compared to the immediately preceding quarter, free cash flow margin improved significantly, driven by a large increase in operating cash flow despite lower revenue. Versus the same quarter last year, both operating cash flow and free cash flow margin were higher, with revenue also higher.
Monitor the trajectory of capital expenditure, which increased relative to both prior periods, as it affects future free cash flow conversion.