3 Cash-Flow Machines Investors May Want Heading Into 2026

Group 1: Importance of Cash Flow - Cash flow is a critical financial metric for investors when evaluating a company's shares, reflecting daily operational performance and the ability to meet expenses [2] - Operating cash flow indicates a firm's capacity to generate revenue from sales, while free cash flow represents the cash available after operating expenses and capital expenditures, which can be used for growth initiatives [2][3] - Strong cash flow supports operational continuity, growth potential, and reduces bankruptcy risk, making it a more reliable metric than net income [3] Group 2: Qualcomm's Financial Performance - Qualcomm Inc. reported a record free cash flow of $12.8 billion in the most recent quarter, marking a 15% year-over-year increase and indicating strong cash-generating potential [5] - The company experienced significant growth in operating cash flow, driven by robust sales in its handset and automotive divisions, resulting in approximately $7.8 billion in cash reserves [5] - Qualcomm's financial position remains strong despite substantial capital expenditures, positioning the company favorably for future quarters [5][6]