The walk (FY25 reported figures)
Net cash provided by operating activities$64,089
Less: purchases of property and equipment, intangibles($3,236)
FCF (Standard)$60,853
SBC relative to FCF
SBC was approximately $4.7B in FY25, about 8% of FCF. Damodaran-school analysts would mark down FCF by this amount before applying P/FCF multiples.
Conversion ratio
Net income FY25 ~$72.9B; FCF / NI = 60.9 / 72.9 = 84%. Below 100% because of working-capital build (inventory ramping with AI-system shipments).
Concentration caveat
Hyperscaler customers represented an outsized share of FY25 revenue. The FCF margin trajectory is sustainable only if hyperscaler CapEx commitments hold; treat the current margin as a peak-cycle reading, not a trend.