Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter and rebounded strongly from a negative year-ago period. Revenue was stable sequentially while operating cash flow and free cash flow both rose.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than the prior quarter and well above the negative level a year ago. Revenue was unchanged sequentially, so the improvement in free cash flow was driven entirely by stronger cash generation from operations.
- Compared to the immediately preceding quarter, free cash flow and its margin were higher, driven by a notable increase in operating cash flow with only a modest rise in capital expenditure. Versus the same quarter one year earlier, all cash flow metrics turned from negative to positive, while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.0B
Cash generated by operations before capital spending.
CapEx
$479.0M
Capital spending and related asset purchases.
FCF margin
36.6%
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 | $11.5B | $4.0B | $803.0M | $3.1B | 27.3% |
| 2025-03-28 | $11.1B | -$5.2B | $309.0M | -$5.5B | -49.5% |
| 2025-06-27 | $12.5B | $3.8B | $442.0M | $3.4B | 26.9% |
| 2025-09-26 | $12.5B | $5.0B | $479.0M | $4.6B | 36.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Strength
Operating cash flow rose substantially from the prior quarter and reversed a negative year-ago result, while capital expenditure remained relatively stable. This was the strongest observable driver of free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow and its margin to a positive level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than the prior quarter and well above the negative level a year ago. Revenue was unchanged sequentially, so the improvement in free cash flow was driven entirely by stronger cash generation from operations.
Compared to the immediately preceding quarter, free cash flow and its margin were higher, driven by a notable increase in operating cash flow with only a modest rise in capital expenditure. Versus the same quarter one year earlier, all cash flow metrics turned from negative to positive, while revenue was slightly higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.