Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to the prior quarter and the same quarter last year. Revenue increased, but operating cash flow declined and capital expenditure rose, resulting in lower free cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter. However, operating cash flow was lower, and capital expenditure was higher, leading to free cash flow and free cash flow margin that were lower than both comparative periods. Per the filing, operating cash flow was supported by net earnings and non-cash adjustments.
- Sequentially, free cash flow and margin decreased from the prior quarter. Year-over-year, both metrics also declined compared to the same quarter last year. Revenue was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $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% |
| 2025-06-29 | $23.7B | $3.9B | $1.0B | $2.8B | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Decline
Operating cash flow decreased both sequentially and year-over-year, while capital expenditure increased. This combination drove the reduction in free cash flow and margin.
The lower cash conversion may signal reduced efficiency in generating cash from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. However, operating cash flow was lower, and capital expenditure was higher, leading to free cash flow and free cash flow margin that were lower than both comparative periods. Per the filing, operating cash flow was supported by net earnings and non-cash adjustments.
Sequentially, free cash flow and margin decreased from the prior quarter. Year-over-year, both metrics also declined compared to the same quarter last year. Revenue was higher in both comparisons.
Monitor the trend in operating cash flow relative to revenue, as it declined despite higher sales.