Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the prior quarter and the same quarter last year. Operating cash flow was the primary driver of the increase.
- Revenue was higher than both comparison periods, and operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, all metrics also showed improvement, with operating cash flow and free cash flow notably higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$662.0M
Capital spending and related asset purchases.
FCF margin
27.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $9.5B | -$1.6B | $256.0M | -$1.8B | -19.2% |
| 2025-06-30 | $10.4B | $868.0M | $231.0M | $637.0M | 6.2% |
| 2025-09-30 | $10.4B | $1.6B | $301.0M | $1.3B | 12.1% |
| 2025-12-31 | $11.7B | $3.9B | $662.0M | $3.2B | 27.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 226.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.3B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin.
The higher operating cash flow was the strongest observable factor behind the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both comparison periods, and operating cash flow rose substantially, leading to a higher free cash flow and an improved free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter last year, all metrics also showed improvement, with operating cash flow and free cash flow notably higher.
Monitor the trend in capital expenditure, which was higher sequentially but lower year over year.