Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from both the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin widened as revenue growth outpaced capital expenditure changes.
- Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, supporting cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
19.5%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $11.5B | $2.3B | $74.0M | $2.3B | 19.5% |
| 2025-06-30 | $12.7B | $2.6B | $89.0M | $2.5B | 19.6% |
| 2025-09-30 | $13.5B | $2.3B | $98.0M | $2.2B | 16.6% |
| 2025-12-31 | $14.4B | $2.9B | $75.0M | $2.8B | 19.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 948.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred alongside higher revenue.
The stronger operating cash flow directly boosted free cash flow and margin, reinforcing cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, supporting cash conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened.
Monitor the trend in capital expenditure relative to operating cash flow, as it influences free cash flow conversion.