Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as operating cash flow and free cash flow both rose, while the margin strengthened. Compared to the same quarter last year, free cash flow was slightly higher despite a modest decline in margin.
- Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose moderately but remained well below operating cash flow, supporting strong cash conversion.
- Compared to the immediately preceding quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.5B
Cash generated by operations before capital spending.
CapEx
$465.0M
Capital spending and related asset purchases.
FCF margin
24.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $12.2B | $3.5B | $465.0M | $3.0B | 24.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.3B | 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 significantly from the prior quarter and was also higher than the same quarter last year, driving the improvement in free cash flow.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose moderately but remained well below operating cash flow, supporting strong cash conversion.
Compared to the immediately preceding quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin were higher. Versus the same quarter one year earlier, revenue and free cash flow were higher, while the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially and could affect future free cash flow generation.