Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable versus the same quarter one year earlier, while operating cash flow improved sequentially. The free cash flow margin weakened slightly compared to the prior year but strengthened significantly from the preceding quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased sequentially, leading to higher free cash flow and a stronger free cash flow margin compared to the preceding quarter.
- Compared to the preceding quarter, free cash flow and free cash flow margin were higher, driven by improved operating cash flow. Versus the same quarter one year earlier, free cash flow was stable while the margin was slightly lower, with capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
19.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $8.3B | $2.8B | $1.3B | $1.6B | 18.8% |
| 2025-03-31 | $8.1B | $2.2B | $1.3B | $891.0M | 11.0% |
| 2025-06-30 | $8.5B | $2.2B | $1.3B | $954.0M | 11.2% |
| 2025-09-30 | $8.6B | $2.9B | $1.3B | $1.7B | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.5B | 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
Operating cash flow was higher sequentially, which was the strongest observable driver of the increase in free cash flow and free cash flow margin from the prior quarter.
This improvement directly supported a higher free cash flow margin compared to the preceding quarter.
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. Operating cash flow increased sequentially, leading to higher free cash flow and a stronger free cash flow margin compared to the preceding quarter.
Compared to the preceding quarter, free cash flow and free cash flow margin were higher, driven by improved operating cash flow. Versus the same quarter one year earlier, free cash flow was stable while the margin was slightly lower, with capital expenditure higher.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.