Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased and operating cash flow rose versus the prior quarter, while capital expenditure decreased, resulting in a substantial improvement in free cash flow and margin. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly lower, but lower capital expenditure led to higher free cash flow and an improved margin.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but slightly lower than the year-ago quarter. With lower capital expenditure in both comparisons, free cash flow margin improved significantly.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue was higher, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.2B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
14.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $25.7B | $4.8B | $2.8B | $2.0B | 7.9% |
| 2025-03-31 | $19.3B | $2.2B | $1.5B | $664.0M | 3.4% |
| 2025-06-30 | $22.5B | $2.5B | $2.4B | $146.0M | 0.6% |
| 2025-09-30 | $28.1B | $6.2B | $2.2B | $4.0B | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 290.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $12.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
Revenue increased while operating cash flow remained stable relative to the prior quarter, and capital expenditure decreased, leading to a higher free cash flow and an improved margin.
The free cash flow margin improved compared to both the prior quarter and the same quarter last year, reflecting stronger cash generation relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the prior quarter but slightly lower than the year-ago quarter. With lower capital expenditure in both comparisons, free cash flow margin improved significantly.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue was higher, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow and margin were higher.
Monitor capital expenditure levels, as the company has the flexibility to adjust spending based on business conditions, which directly impacts free cash flow.