Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined slightly from the prior quarter but grew compared to the same quarter last year. Operating cash flow rose sharply sequentially and improved year over year, driving free cash flow higher and expanding the free cash flow margin.
- Despite a small dip in revenue from the previous quarter, operating cash flow increased significantly, resulting in a higher free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago period, supporting the conversion of revenue into free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both improved substantially, while revenue was slightly lower. Versus the same quarter last year, revenue was higher and free cash flow increased, though operating cash flow was only marginally higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$691.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$852.0M
Cash generated by operations before capital spending.
CapEx
$161.0M
Capital spending and related asset purchases.
FCF margin
3.4%
The share of revenue converted into free cash flow.
TTM FCF yield
4.7%
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 | $21.1B | $1.2B | $374.0M | $819.0M | 3.9% |
| 2025-09-27 | $21.1B | $86.0M | $160.0M | -$74.0M | -0.3% |
| 2025-12-27 | $20.8B | $525.0M | $140.0M | $385.0M | 1.9% |
| 2026-03-28 | $20.5B | $852.0M | $161.0M | $691.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 203.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Surge
Operating cash flow rose sharply from the prior quarter, more than offsetting a slight revenue decline and a modest increase in capital expenditure. This was the primary factor behind the improvement in free cash flow and margin.
The stronger operating cash flow lifted free cash flow well above both the prior quarter and the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite a small dip in revenue from the previous quarter, operating cash flow increased significantly, resulting in a higher free cash flow margin. Capital expenditure was modestly higher than the prior quarter but lower than the year-ago period, supporting the conversion of revenue into free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both improved substantially, while revenue was slightly lower. Versus the same quarter last year, revenue was higher and free cash flow increased, though operating cash flow was only marginally higher.
Monitor the trajectory of operating cash flow, given its substantial sequential increase and its central role in free cash flow generation.
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 | $38.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.