Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than the same quarter one year earlier and stable compared with the previous quarter. The free cash flow margin improved versus the year-ago period but weakened slightly from the prior quarter.
- Operating cash flow was higher than both the previous quarter and the same quarter one year earlier, while capital expenditure also increased. Free cash flow, derived as operating cash flow less capital expenditure, was higher year-over-year and essentially flat sequentially, with the margin reflecting a similar pattern.
- Compared with the previous quarter, revenue was higher and operating cash flow increased, while capital expenditure expanded and free cash flow remained nearly unchanged. Versus the same quarter one year earlier, all metrics were higher, leading to a notable improvement in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$78.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$25.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$45.1B
Cash generated by operations before capital spending.
CapEx
$19.4B
Capital spending and related asset purchases.
FCF margin
33.0%
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 | $69.6B | $22.3B | $15.8B | $6.5B | 9.3% |
| 2025-03-31 | $70.1B | $37.0B | $16.7B | $20.3B | 29.0% |
| 2025-06-30 | $76.4B | $42.6B | $17.1B | $25.6B | 33.4% |
| 2025-09-30 | $77.7B | $45.1B | $19.4B | $25.7B | 33.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.4B | 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 compared with both the prior quarter and the same quarter one year earlier, marking the strongest observable driver of free cash flow performance.
Higher operating cash flow directly supported free cash flow, which improved year-over-year and stayed steady sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the previous quarter and the same quarter one year earlier, while capital expenditure also increased. Free cash flow, derived as operating cash flow less capital expenditure, was higher year-over-year and essentially flat sequentially, with the margin reflecting a similar pattern.
Compared with the previous quarter, revenue was higher and operating cash flow increased, while capital expenditure expanded and free cash flow remained nearly unchanged. Versus the same quarter one year earlier, all metrics were higher, leading to a notable improvement in free cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as both have increased sequentially.