Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter a year earlier. Free cash flow and its margin were slightly above the prior quarter but roughly stable relative to the year-ago period.
- The conversion of revenue into operating cash flow improved from both the prior quarter and the year-ago quarter, while capital expenditure as a share of revenue increased. The resulting free cash flow margin was slightly higher than the prior quarter but slightly lower than the same quarter last year.
- Revenue, operating cash flow, capital expenditure, and free cash flow all increased sequentially, with operating cash flow showing the largest relative improvement. Year-over-year, all metrics were higher except free cash flow margin, which was modestly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.8B
Cash generated by operations before capital spending.
CapEx
$4.9B
Capital spending and related asset purchases.
FCF margin
15.8%
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 | $30.2B | $10.2B | $5.3B | $4.9B | 16.3% |
| 2024-12-31 | $32.3B | $11.9B | $6.8B | $5.1B | 15.6% |
| 2025-03-31 | $30.6B | $9.0B | $4.3B | $4.8B | 15.6% |
| 2025-06-30 | $30.8B | $9.8B | $4.9B | $4.9B | 15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.9% | 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.
Operating Cash Flow Growth
Operating cash flow rose from the prior quarter and from the same quarter a year ago, contributing to the improvement in free cash flow despite higher capital spending.
The higher operating cash flow supported increased investment in capital expenditures while still delivering higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow improved from both the prior quarter and the year-ago quarter, while capital expenditure as a share of revenue increased. The resulting free cash flow margin was slightly higher than the prior quarter but slightly lower than the same quarter last year.
Revenue, operating cash flow, capital expenditure, and free cash flow all increased sequentially, with operating cash flow showing the largest relative improvement. Year-over-year, all metrics were higher except free cash flow margin, which was modestly lower.
Monitor the trend in capital expenditure, which rose both sequentially and year-over-year and may affect future free cash flow.