Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin was lower than the preceding quarter but similar to the same quarter a year earlier. The filing notes that the company's cash and cash equivalents decreased from the prior year end, with operating, investing, and financing activities contributing to the change.
- Operating cash flow relative to revenue weakened compared with the preceding quarter, and capital expenditure was higher, leading to a lower free cash flow margin. Relative to the year-ago quarter, operating cash flow and free cash flow were slightly higher, with a marginally lower margin.
- Compared with the preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher. Compared with the same quarter a year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.3B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
22.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-28 | $24.6B | $7.3B | $1.8B | $5.5B | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.7B | 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 Decrease
Operating cash flow was lower than the preceding quarter, which was the primary observable factor behind the decrease in free cash flow. This occurred even as revenue increased.
The decline in operating cash flow reduced the free cash flow margin compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue weakened compared with the preceding quarter, and capital expenditure was higher, leading to a lower free cash flow margin. Relative to the year-ago quarter, operating cash flow and free cash flow were slightly higher, with a marginally lower margin.
Compared with the preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher. Compared with the same quarter a year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the free cash flow margin was slightly lower.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.