Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow each improved compared to both the prior quarter and the same quarter one year ago. Free cash flow margin strengthened sequentially but weakened relative to the year-ago period.
- Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure consumed a larger portion of operating cash flow compared with both periods. The resulting free cash flow margin decreased year-over-year despite a sequential improvement.
- Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were higher, free cash flow was higher, and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$46.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$36.2B
Cash generated by operations before capital spending.
CapEx
$21.4B
Capital spending and related asset purchases.
FCF margin
24.8%
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 | $42.3B | $24.0B | $12.9B | $11.1B | 26.2% |
| 2025-06-30 | $47.5B | $25.6B | $16.5B | $9.0B | 19.0% |
| 2025-09-30 | $51.2B | $30.0B | $18.8B | $11.2B | 21.8% |
| 2025-12-31 | $59.9B | $36.2B | $21.4B | $14.8B | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Free Cash Flow Growth
Free cash flow increased compared to both the prior quarter and the year-ago quarter, driven by higher operating cash flow that more than offset the sequential and year-over-year rise in capital expenditure.
The absolute level of free cash flow improved, indicating enhanced cash generation capacity in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure consumed a larger portion of operating cash flow compared with both periods. The resulting free cash flow margin decreased year-over-year despite a sequential improvement.
Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were higher, free cash flow was higher, and free cash flow margin was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as the higher cap-ex intensity observed this quarter compared to both prior periods may pressure future free cash flow margins.