Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow and free cash flow improved. Free cash flow margin strengthened, driven by higher operating cash flow relative to revenue.
- Revenue was unchanged from the previous quarter and higher than a year ago. Operating cash flow was higher sequentially and significantly higher year over year. Capital expenditure was higher than both periods. Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow margin was higher, driven by operating cash flow improvement. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$389.0M
Capital spending and related asset purchases.
FCF margin
25.0%
The share of revenue converted into free cash flow.
TTM FCF yield
0.9%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-28 | $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% |
| 2026-03-28 | $10.3B | $3.0B | $389.0M | $2.6B | 25.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.4B | 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 Expansion
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, while revenue was stable sequentially. This improvement in cash generation directly strengthened free cash flow and margin.
Higher operating cash flow was the strongest observable driver of improved free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter and higher than a year ago. Operating cash flow was higher sequentially and significantly higher year over year. Capital expenditure was higher than both periods. Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, free cash flow margin was higher, driven by operating cash flow improvement. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor capital expenditure trends, as it increased notably from both the prior quarter and the year-ago quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $909.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 105.8x | A quick valuation bridge, not a full DCF. |