Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved from the prior quarter, but free cash flow and margin weakened compared to the same quarter last year. Capital expenditure was higher sequentially but lower year over year.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than a year ago, resulting in a free cash flow margin that improved sequentially yet declined year over year. Capital expenditure consumed a smaller share of operating cash flow compared to the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow were notably lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.3B
Cash generated by operations before capital spending.
CapEx
$845.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $13.7B | $2.3B | $564.0M | $1.8B | 12.9% |
| 2025-06-29 | $14.7B | -$582.0M | $618.0M | -$1.2B | -8.2% |
| 2025-09-28 | $16.7B | $4.6B | $602.0M | $4.0B | 24.0% |
| 2025-12-31 | $17.6B | $5.3B | $845.0M | $4.5B | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -273.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$63.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash flow improvement
Operating cash flow increased from the prior quarter, driving a higher free cash flow and an improved free cash flow margin. This was the strongest observable driver in the current quarter.
The sequential rise in operating cash flow directly supported a higher free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than a year ago, resulting in a free cash flow margin that improved sequentially yet declined year over year. Capital expenditure consumed a smaller share of operating cash flow compared to the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow were notably lower, and the margin weakened.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.