Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but was slightly below the same quarter a year earlier. The free cash flow margin increased sequentially, driven by higher operating cash flow relative to revenue.
- Revenue was higher than both the prior quarter and the same quarter a year earlier. Operating cash flow matched the year-ago level and was above the prior quarter, while capital expenditure increased compared with both periods, resulting in free cash flow that was higher than the prior quarter but lower than a year ago.
- Compared with the prior quarter, operating cash flow and free cash flow both improved significantly, and the free cash flow margin strengthened. Versus the same quarter a year earlier, operating cash flow was stable but capital expenditure was higher, leading to a slightly lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$404.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $11.4B | $3.3B | $480.0M | $2.8B | 24.7% |
| 2025-03-29 | $10.4B | $723.0M | $362.0M | $361.0M | 3.5% |
| 2025-06-28 | $10.9B | $1.4B | $294.0M | $1.1B | 10.2% |
| 2025-09-27 | $11.1B | $2.2B | $404.0M | $1.8B | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$33.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential free cash flow improvement
Operating cash flow rose relative to the prior quarter, while capital expenditure increased at a lesser rate, resulting in higher free cash flow and an improved free cash flow margin. Revenue growth supported the higher operating cash generation.
The stronger operating cash flow more than compensated for the increase in capital spending, leading to improved free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter a year earlier. Operating cash flow matched the year-ago level and was above the prior quarter, while capital expenditure increased compared with both periods, resulting in free cash flow that was higher than the prior quarter but lower than a year ago.
Compared with the prior quarter, operating cash flow and free cash flow both improved significantly, and the free cash flow margin strengthened. Versus the same quarter a year earlier, operating cash flow was stable but capital expenditure was higher, leading to a slightly lower free cash flow and margin.
The level of capital expenditure, which increased from both the prior quarter and the year-ago quarter, should be monitored for its effect on future free cash flow.