Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly versus the previous quarter and was also higher than the same quarter last year. Cash conversion strengthened markedly.
- Operating cash flow increased sharply relative to revenue, while capital expenditure also rose, resulting in a much higher free cash flow margin.
- Compared to the previous quarter, operating cash flow and free cash flow both improved substantially. Compared to the same quarter last year, free cash flow was higher and the free cash flow margin improved slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.2B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
33.4%
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 |
|---|---|---|---|---|---|
| 2024-12-29 | $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% |
| 2025-09-28 | $24.0B | $9.2B | $1.2B | $8.0B | 33.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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 Improvement
The strongest observable driver was the sharp rise in operating cash flow, which more than offset the increase in capital expenditure.
The higher operating cash flow directly led to the significant improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased sharply relative to revenue, while capital expenditure also rose, resulting in a much higher free cash flow margin.
Compared to the previous quarter, operating cash flow and free cash flow both improved substantially. Compared to the same quarter last year, free cash flow was higher and the free cash flow margin improved slightly.
Monitor the sustainability of operating cash flow given the significant increase from the prior quarter.