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 improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially and was higher than the year-ago period.
- Operating cash flow rose more than revenue, leading to a higher free cash flow margin. Capital expenditure increased in absolute terms but remained stable relative to the larger operating cash flow base.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow showing the largest relative increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$292.0M
Capital spending and related asset purchases.
FCF margin
22.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.5B | $2.0B | $516.0M | $1.5B | 23.0% |
| 2025-03-28 | $5.7B | $1.3B | $245.0M | $1.1B | 18.4% |
| 2025-06-27 | $5.9B | $1.3B | $248.0M | $1.1B | 18.4% |
| 2025-09-26 | $6.1B | $1.7B | $292.0M | $1.4B | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 more than revenue both sequentially and year-over-year, driving the improvement in free cash flow and margin.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue, leading to a higher free cash flow margin. Capital expenditure increased in absolute terms but remained stable relative to the larger operating cash flow base.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with operating cash flow showing the largest relative increase.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while operating cash flow also rose.