Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Free cash flow margin improved compared to last year but weakened from the immediate previous quarter.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin was roughly in line with the year-ago level but notably lower than the preceding quarter.
- Compared to the preceding quarter, both operating cash flow and free cash flow were lower, and the margin contracted. Versus the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and the margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$795.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $22.4B | $5.6B | $976.0M | $4.7B | 20.7% |
| 2024-09-29 | $22.5B | $8.0B | $1.0B | $7.0B | 31.0% |
| 2024-12-29 | $22.5B | $7.0B | $1.6B | $5.4B | 23.8% |
| 2025-03-30 | $21.9B | $4.2B | $795.0M | $3.4B | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 generation
Operating cash flow was the primary source of free cash flow, exceeding capital expenditure and supporting a positive margin. The cash balance increased significantly from the end of the prior fiscal year.
The cash conversion cycle remains funded by operating cash flows, with capital expenditure a smaller draw.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin was roughly in line with the year-ago level but notably lower than the preceding quarter.
Compared to the preceding quarter, both operating cash flow and free cash flow were lower, and the margin contracted. Versus the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was higher, and the margin improved modestly.
Monitor the level of operating cash flow relative to revenue, as it declined sequentially despite revenue being stable.