Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose compared with both the prior quarter and the same quarter last year. Free cash flow margin was higher than a year ago but slightly lower than the preceding quarter.
- Operating cash flow increased relative to the prior quarter and the year-ago period, while capital expenditure was little changed. The resulting free cash flow improved on both comparisons, though the free cash flow margin contracted slightly from the prior quarter.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin weakened. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing strong improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$258.0M
Capital spending and related asset purchases.
FCF margin
20.6%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $7.7B | $1.3B | $208.0M | $1.1B | 14.2% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.6B | 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 was substantially higher than both the previous quarter and the same quarter a year earlier, driving the increase in free cash flow.
Stronger cash generation from operations provided the primary lift to free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to the prior quarter and the year-ago period, while capital expenditure was little changed. The resulting free cash flow improved on both comparisons, though the free cash flow margin contracted slightly from the prior quarter.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin weakened. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing strong improvement.
Monitor the trend in free cash flow margin, as it declined from the prior quarter despite higher absolute free cash flow.