Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was level versus the prior quarter and the same quarter one year earlier. Free cash flow margin improved sharply compared with both periods, driven by a significant increase in operating cash flow while capital expenditure remained stable.
- Operating cash flow exceeded revenue proportionally more than in the preceding quarter and the year-ago quarter, leading to a higher free cash flow margin. Capital expenditure was lower than the year-ago level and similar to the prior quarter, supporting cash conversion.
- Compared with the immediately preceding quarter, revenue was essentially stable while free cash flow and free cash flow margin improved substantially. Versus the same quarter one year earlier, revenue was also stable, and both operating cash flow and free cash flow were higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$687.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$882.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$955.7M
Cash generated by operations before capital spending.
CapEx
$72.8M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $3.7B | -$420.0M | $65.0M | -$485.0M | -13.0% |
| 2025-06-28 | $3.9B | $214.3M | $79.6M | $134.7M | 3.4% |
| 2025-09-27 | $3.8B | $221.2M | $65.9M | $155.3M | 4.1% |
| 2026-01-03 | $3.7B | $955.7M | $72.8M | $882.9M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 558.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 markedly higher than both the prior quarter and the year-ago quarter, while revenue remained essentially unchanged. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and margin without requiring revenue growth or a reduction in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue proportionally more than in the preceding quarter and the year-ago quarter, leading to a higher free cash flow margin. Capital expenditure was lower than the year-ago level and similar to the prior quarter, supporting cash conversion.
Compared with the immediately preceding quarter, revenue was essentially stable while free cash flow and free cash flow margin improved substantially. Versus the same quarter one year earlier, revenue was also stable, and both operating cash flow and free cash flow were higher, with capital expenditure lower.
Monitor the sustainability of the elevated operating cash flow level relative to revenue in future periods.