Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly lower than the prior quarter and higher than a year ago, resulting in free cash flow that was higher year-over-year but lower sequentially.
- Compared to the prior quarter, revenue increased while operating cash flow and free cash flow both decreased, causing free cash flow margin to weaken. Compared to the same quarter last year, all metrics improved, with free cash flow margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
17.2%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $20.9B | $6.8B | $2.5B | $4.4B | 21.0% |
| 2025-06-30 | $21.1B | $7.0B | $2.4B | $4.6B | 21.7% |
| 2025-09-30 | $22.0B | $7.5B | $2.6B | $4.8B | 21.9% |
| 2025-12-31 | $24.3B | $6.7B | $2.5B | $4.2B | 17.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$80.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow growth
Free cash flow was higher than the same quarter last year, supported by a larger increase in operating cash flow relative to the increase in capital expenditure.
This driver contributed to a higher free cash flow margin compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly lower than the prior quarter and higher than a year ago, resulting in free cash flow that was higher year-over-year but lower sequentially.
Compared to the prior quarter, revenue increased while operating cash flow and free cash flow both decreased, causing free cash flow margin to weaken. Compared to the same quarter last year, all metrics improved, with free cash flow margin higher.
Monitor the trend in operating cash flow, which declined sequentially despite higher revenue.