Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved sequentially and year-over-year.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow and margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$158.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 |
|---|---|---|---|---|---|
| 2025-03-28 | $5.1B | -$42.0M | $59.0M | -$101.0M | -2.0% |
| 2025-06-27 | $5.4B | $640.0M | $88.0M | $552.0M | 10.2% |
| 2025-10-03 | $5.7B | $546.0M | $119.0M | $427.0M | 7.5% |
| 2026-01-02 | $21.9B | $2.0B | $158.0M | $1.8B | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 601.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow improvement.
Higher operating cash flow drove free cash flow and margin higher despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the prior quarter and the year-ago quarter, indicating improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were also higher, with free cash flow and margin showing notable improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially and year-over-year.