Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose but remained a manageable portion of operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened further.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$271.0M
Capital spending and related asset purchases.
FCF margin
24.2%
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 |
|---|---|---|---|---|---|
| 2024-12-27 | $3.8B | $878.0M | $205.0M | $673.0M | 17.5% |
| 2025-03-28 | $4.1B | $653.0M | $230.0M | $423.0M | 10.2% |
| 2025-06-27 | $4.5B | $1.2B | $230.0M | $957.0M | 21.1% |
| 2025-09-26 | $4.7B | $1.4B | $271.0M | $1.1B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 from both the prior quarter and the year-ago quarter, outpacing revenue growth and directly lifting free cash flow.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose but remained a manageable portion of operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with the free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened further.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it increased from both comparison periods.