Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to the same quarter last year, as capital expenditure grew substantially while operating cash flow improved at a slower pace. Sequentially, both revenue and operating cash flow rose, leading to higher free cash flow and an improved margin.
- Revenue and operating cash flow were higher than the prior quarter, but capital expenditure also increased, resulting in free cash flow that was higher than the prior quarter but lower than the same quarter a year earlier. The free cash flow margin improved from the prior quarter but declined from the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure also rose. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was substantially higher, leading to lower free cash flow and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$44.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$30.0B
Cash generated by operations before capital spending.
CapEx
$18.8B
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $48.4B | $28.0B | $14.4B | $13.6B | 28.0% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 412.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.7% | 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 Growth
Operating cash flow increased from the prior quarter and from the same quarter a year earlier, providing the primary support for free cash flow despite higher capital spending.
The higher operating cash flow enabled free cash flow to improve sequentially even as capital expenditure rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were higher than the prior quarter, but capital expenditure also increased, resulting in free cash flow that was higher than the prior quarter but lower than the same quarter a year earlier. The free cash flow margin improved from the prior quarter but declined from the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure also rose. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was substantially higher, leading to lower free cash flow and a weaker margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them has widened compared to the prior year.