Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin weakened compared to both the immediate prior quarter and the same quarter last year. Revenue and operating cash flow increased year-over-year but decreased sequentially.
- Operating cash flow relative to revenue improved year-over-year but declined sequentially, while capital expenditure rose year-over-year and remained stable sequentially, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was flat. Versus the same quarter last year, revenue and operating cash flow were higher, but free cash flow was lower due to higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.0B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
17.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $22.4B | $5.4B | $1.2B | $4.2B | 18.8% |
| 2025-12-31 | $22.2B | $5.0B | $1.2B | $3.8B | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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.
Capital Expenditure Increase
Capital expenditure was higher compared to the same quarter last year, while remaining unchanged from the prior quarter. This increase offset the year-over-year growth in operating cash flow.
The higher capital expenditure reduced free cash flow despite stronger operating cash flow year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue improved year-over-year but declined sequentially, while capital expenditure rose year-over-year and remained stable sequentially, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was flat. Versus the same quarter last year, revenue and operating cash flow were higher, but free cash flow was lower due to higher capital expenditure.
Monitor the trend in capital expenditure, as its year-over-year increase was the primary factor behind the decline in free cash flow.