Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter last year. The improvement was driven by higher operating cash flow while capital expenditure remained relatively stable.
- Revenue was higher than the prior quarter and the same quarter last year. Operating cash flow also increased, while capital expenditure was slightly lower than the prior quarter but higher than the year-ago period. As a result, free cash flow and free cash flow margin were both higher.
- Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter last year, free cash flow and margin were significantly higher, reflecting stronger cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.0B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
21.7%
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 | $20.2B | $6.1B | $2.0B | $4.2B | 20.7% |
| 2024-12-31 | $21.9B | $5.5B | $2.2B | $3.3B | 15.3% |
| 2025-03-31 | $20.9B | $6.8B | $2.5B | $4.4B | 21.0% |
| 2025-06-30 | $21.1B | $7.0B | $2.4B | $4.6B | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.3% | 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 increased compared to both the prior quarter and the same quarter last year, while capital expenditure saw only modest changes. This was the primary factor behind the improvement in free cash flow.
The higher operating cash flow enabled free cash flow margin to expand.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the same quarter last year. Operating cash flow also increased, while capital expenditure was slightly lower than the prior quarter but higher than the year-ago period. As a result, free cash flow and free cash flow margin were both higher.
Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter last year, free cash flow and margin were significantly higher, reflecting stronger cash generation.
Monitor the trend in capital expenditure relative to operating cash flow, as it influences free cash flow sustainability.