Infineon gives upbeat forecast | Electronics Weekly

For the current quarter it expects revenue of €4.1 billion at a margin in the high-teens percent range

For FY 2026, revenue is now expected to rise significantly YoY with an adjusted gross margin in the low-to-mid forties percent range (previously low forties percent range) and a profit of around 20% (previously high-teens.

Adjusted Free Cash Flow is now expected to be around €1.65billion (previously €1.4 billion) and Free Cash Flow should reach around €1.25 billion (previously €1.0 billion)

Effective from Q4 FY 2026, the number of business segments will be reduced from four to three. 

“Infineon fully achieved its targets in the first half of the fiscal year,” said CEO Jochen Hanebeck (pictured), “in the second half, we will grow more strongly than previously expected, with a broader upcycle across many end markets now in sight. The AI boom strengthens further, and our power supply solutions for AI datacentres are in very high demand. The expansion of power infrastructure is gaining momentum and is becoming an increasingly important growth driver for our industrial business.”

“In Automotive, we are seeing positive developments, especially in software-defined vehicles, dampened by a challenging high-voltage business for e-mobility. Further market share gains in Automotive confirm we are overall on the right track. We are entering the second half of the year with confidence, while continuing to closely monitor geopolitical and macroeconomic risks. We are consistently developing and streamlining our organisational structure. With a clearer ownership of focus applications, we bring innovative system solutions to customers faster and accelerate decision-making.”

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