Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and from the same quarter last year. Free cash flow was stable compared to a year ago but slightly lower than the preceding quarter, while the free cash flow margin weakened sequentially.
- Operating cash flow as a proportion of revenue improved relative to both the prior quarter and the year-ago quarter. However, capital expenditure rose more than operating cash flow on a sequential basis, resulting in a lower free cash flow margin compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, 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
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
17.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $8.8B | $3.0B | $1.5B | $1.6B | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.4B | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, supporting higher free cash flow compared to a year ago despite a rise in capital expenditure.
The improvement in operating cash flow was the strongest observable driver of free cash flow performance this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved relative to both the prior quarter and the year-ago quarter. However, capital expenditure rose more than operating cash flow on a sequential basis, resulting in a lower free cash flow margin compared to the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow was lower and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, while the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as its sequential increase outpaced operating cash flow growth and compressed free cash flow margin.