Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved both sequentially and versus the prior year, driven by higher operating cash flow. The free cash flow margin strengthened as revenue declined less sharply than operating cash flow rose.
- Revenue contracted from both the prior quarter and the year-ago quarter, yet operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both comparable periods, but the rise in operating cash flow more than offset the increased spending.
- Compared with the prior quarter, revenue was lower while operating cash flow was higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
5.8%
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 | $31.5B | -$64.0M | $663.0M | -$727.0M | -2.3% |
| 2025-06-30 | $33.8B | $2.6B | $695.0M | $1.9B | 5.8% |
| 2025-09-30 | $34.8B | $2.6B | $947.0M | $1.7B | 4.8% |
| 2025-12-31 | $32.6B | $3.1B | $1.2B | $1.9B | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Higher Operating Cash Flow
Operating cash flow rose to a higher level compared with the preceding quarter and the same quarter last year, despite lower revenue. This improvement was the primary factor behind the increase in free cash flow and the expansion of free cash flow margin.
Stronger operating cash flow directly supported higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue contracted from both the prior quarter and the year-ago quarter, yet operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both comparable periods, but the rise in operating cash flow more than offset the increased spending.
Compared with the prior quarter, revenue was lower while operating cash flow was higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trajectory of capital expenditure, which was higher in the current quarter compared with both the prior quarter and the year-ago quarter.