Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was lower than the prior quarter but higher than the same quarter one year earlier, as operating cash flow decreased sequentially while increasing year over year. The free cash flow margin weakened from the preceding quarter but improved compared to a year ago.
- Revenue increased compared to both the prior quarter and the same quarter one year earlier. Operating cash flow decreased from the preceding quarter but rose substantially year over year. Capital expenditure was higher than the prior quarter yet lower than a year ago. Free cash flow declined sequentially but increased markedly from the same quarter one year earlier, resulting in a free cash flow margin that weakened quarter over quarter and strengthened year over year.
- Compared to the immediate preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$463.0M
Capital spending and related asset purchases.
FCF margin
13.6%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $18.0B | $1.4B | $454.0M | $955.0M | 5.3% |
| 2025-06-29 | $18.2B | $201.0M | $351.0M | -$150.0M | -0.8% |
| 2025-09-28 | $18.6B | $3.7B | $381.0M | $3.3B | 18.0% |
| 2025-12-31 | $20.3B | $3.2B | $463.0M | $2.8B | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 205.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Operating cash flow and free cash flow were higher than the same quarter one year earlier, while capital expenditure was lower, resulting in a markedly stronger free cash flow margin year over year.
This positions the company with a substantially improved free cash flow generation compared to the prior year same quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Operating cash flow decreased from the preceding quarter but rose substantially year over year. Capital expenditure was higher than the prior quarter yet lower than a year ago. Free cash flow declined sequentially but increased markedly from the same quarter one year earlier, resulting in a free cash flow margin that weakened quarter over quarter and strengthened year over year.
Compared to the immediate preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved.
Monitor the sequential decline in free cash flow margin from the prior quarter, as operating cash flow decreased despite higher revenue.