Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sequentially, though free cash flow margin remained below the year-ago level. Capital expenditure increased from both the prior quarter and the same quarter last year.
- Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow rose sequentially but was lower than the same quarter last year, while free cash flow followed a similar pattern. The free cash flow margin improved from the prior quarter but weakened compared to the year-ago period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.0B
Cash generated by operations before capital spending.
CapEx
$996.0M
Capital spending and related asset purchases.
FCF margin
19.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $21.7B | $4.3B | $993.0M | $3.3B | 15.2% |
| 2024-12-31 | $21.9B | $4.8B | $925.0M | $3.9B | 17.8% |
| 2025-03-31 | $19.8B | $3.7B | $859.0M | $2.8B | 14.4% |
| 2025-06-30 | $20.9B | $5.0B | $996.0M | $4.0B | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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.
Sequential operating 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 of the quarter's cash conversion performance.
The sequential rise in operating cash flow was the primary factor behind the quarter's improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow rose sequentially but was lower than the same quarter last year, while free cash flow followed a similar pattern. The free cash flow margin improved from the prior quarter but weakened compared to the year-ago period.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher, resulting in a weakened free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending combined with lower operating cash flow year-over-year compressed free cash flow.