Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the previous quarter and the same quarter a year earlier, driven by stable operating cash flow combined with reduced capital expenditure. The free cash flow margin strengthened relative to both prior periods.
- Revenue was nearly flat versus the prior quarter and slightly higher than the year-ago period. Operating cash flow matched the year-ago level and increased sequentially, while capital expenditure declined year-over-year but held steady quarter-over-quarter. The result was higher free cash flow and a stronger free cash flow margin compared with both comparison periods.
- Compared with the immediate preceding quarter, free cash flow and free cash flow margin improved; versus the same quarter a year earlier, free cash flow and margin also strengthened. Operating cash flow was stable sequentially and unchanged annually. Capital expenditure was unchanged sequentially but lower year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.2B
Cash generated by operations before capital spending.
CapEx
$4.9B
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $30.7B | $10.2B | $4.9B | $5.3B | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.5% | 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.
Capital Expenditure Reduction
Capital expenditure was lower than the year-ago quarter while operating cash flow remained stable, contributing to higher free cash flow and margin. The capital expenditure level was unchanged from the prior quarter.
The reduction in capital spending relative to the prior year was the strongest observable driver of improved free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly flat versus the prior quarter and slightly higher than the year-ago period. Operating cash flow matched the year-ago level and increased sequentially, while capital expenditure declined year-over-year but held steady quarter-over-quarter. The result was higher free cash flow and a stronger free cash flow margin compared with both comparison periods.
Compared with the immediate preceding quarter, free cash flow and free cash flow margin improved; versus the same quarter a year earlier, free cash flow and margin also strengthened. Operating cash flow was stable sequentially and unchanged annually. Capital expenditure was unchanged sequentially but lower year over year.
Monitor the level of cash and cash equivalents, which the filing notes was elevated in anticipation of announced transactions, as this may affect future capital allocation.