Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened over both periods.
- Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet free cash flow still rose due to the stronger operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Relative to the same quarter one year earlier, all metrics were higher, including capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$222.0M
Capital spending and related asset purchases.
FCF margin
23.2%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $7.4B | $939.0M | $212.0M | $727.0M | 9.8% |
| 2025-06-28 | $7.7B | $2.0B | $282.0M | $1.7B | 22.5% |
| 2025-09-27 | $9.2B | $2.2B | $258.0M | $1.9B | 20.6% |
| 2025-12-27 | $10.3B | $2.6B | $222.0M | $2.4B | 23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.3B | 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 rose substantially compared to both the prior quarter and the same quarter last year, contributing directly to the improvement in free cash flow and margin.
Higher operating cash flow was the strongest observable driver of the improved free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet free cash flow still rose due to the stronger operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Relative to the same quarter one year earlier, all metrics were higher, including capital expenditure.
Monitor the trajectory of capital expenditure, as it was higher than a year ago but lower than the prior quarter.