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 from the prior quarter and from the same period one year earlier. The cash conversion cycle strengthened as free cash flow margin widened compared to both prior periods.
- Operating cash flow rose against the immediate prior quarter while capital expenditure also increased, yet free cash flow and its margin improved, indicating more efficient cash conversion from revenue.
- Compared to the immediately preceding quarter, revenue and free cash flow margin were higher. Versus the same quarter one year earlier, all main metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$978.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$145.0M
Capital spending and related asset purchases.
FCF margin
29.3%
The share of revenue converted into free cash flow.
TTM FCF yield
1.6%
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 |
|---|---|---|---|---|---|
| 2025-06-27 | $2.6B | $746.0M | $71.0M | $675.0M | 25.9% |
| 2025-10-03 | $2.8B | $672.0M | $73.0M | $599.0M | 21.3% |
| 2026-01-02 | $3.0B | $745.0M | $92.0M | $653.0M | 21.6% |
| 2026-04-03 | $3.3B | $1.1B | $145.0M | $978.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $469.0M | 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 Expansion
Operating cash flow showed a notable increase compared to both the prior quarter and the year-ago period. This expansion was the strongest observable driver of the improvement in free cash flow and its margin.
Higher operating cash flow directly supported a wider free cash flow margin and a larger absolute free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose against the immediate prior quarter while capital expenditure also increased, yet free cash flow and its margin improved, indicating more efficient cash conversion from revenue.
Compared to the immediately preceding quarter, revenue and free cash flow margin were higher. Versus the same quarter one year earlier, all main metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
The increase in capital expenditure relative to the prior quarter, though smaller than the rise in operating cash flow, should be monitored for its effect on future free cash flow margin.
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 | $177.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 60.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.