Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened year-over-year but weakened sequentially.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the prior quarter but significantly higher than the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, all metrics improved, with free cash flow margin rising from a lower level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$970.0M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $20.3B | $1.3B | $513.0M | $792.0M | 3.9% |
| 2025-06-30 | $21.6B | $458.0M | $530.0M | -$72.0M | -0.3% |
| 2025-09-30 | $22.5B | $4.6B | $614.0M | $4.0B | 17.9% |
| 2025-12-31 | $24.2B | $4.2B | $970.0M | $3.2B | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
Year-over-year free cash flow improvement
Free cash flow and free cash flow margin were substantially higher than the same quarter one year earlier, driven by a higher operating cash flow and a lower capital expenditure compared to that period.
This year-over-year strengthening in free cash flow generation supports a stronger cash conversion profile relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the prior quarter but significantly higher than the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, all metrics improved, with free cash flow margin rising from a lower level.
Monitor the relationship between operating cash flow and capital expenditure, as the sequential decline in operating cash flow combined with higher capital expenditure reduced free cash flow.