Infineon Sees Revenue Near €20 Billion in 2027, With Growth Above 20%
Key Facts
Infineon reported results on November 10 for the fourth quarter and fiscal 2026, which ended on September 30, and forecast revenue of about €20 billion in fiscal 2027, with growth above 20% and an increase of about 5 percentage points in profitability. Fourth-quarter revenue was €4.706 billion, while segment result reached €1.119 billion, with a margin of 23.8%. Adjusted diluted earnings per share from continuing operations rose to €0.60, compared with €0.44 in the third quarter and €0.34 a year earlier. But net income for the period was €532 million, below analysts’ estimate of €677 million, while adjusted earnings per share also missed their estimate of €0.64. The results put stronger operating performance and a robust growth outlook alongside disappointment on some earnings measures.
Quarterly revenue accelerated 13% from €4.172 billion in the third quarter, and segment result rose 40% from €797 million. The segment result margin climbed to 23.8% from 19.1%, while the adjusted gross margin increased to 45.1% from 42.8% and the reported gross margin rose to 41.8% from 40.8%. Year on year, fourth-quarter revenue grew 19% from €3.943 billion, and segment result increased 56% from €717 million. The segment result margin in the year-earlier quarter was 18.2%. Adjusted earnings per share rose 36% quarter on quarter and 76% year on year, according to company data.
Revenue rose in the automotive, green industrial power, and power and sensing systems segments in the fourth quarter, while revenue declined in connected and secure systems. In its third-quarter results, Chief Executive Jochen Hanebeck said demand for power supply solutions for AI data centers remained “very high,” describing them as the company’s most important growth drivers. He added at the time that automotive orders “had started to improve clearly.” In its 2027 outlook, the company named data center power solutions, upgrades to energy infrastructure, electric mobility and software-defined vehicles as key contributors. It also cited robotics and edge AI as emerging applications, amid strong demand in areas of structural growth and ongoing cyclical recovery.
For fiscal 2027, Infineon expects revenue from data center power supply to approach €4 billion. It set its adjusted gross margin target in the mid-to-high 40s and its segment result margin in the mid-20s. In its segment outlook, automotive revenue is expected to rise by a mid-teens percentage, while revenue from edge systems is expected to grow at a low double-digit rate. The company expects power systems to grow much faster than group revenue. For the first quarter of fiscal 2027, it forecasts revenue of about €4.6 billion and a segment result margin of about 23%, based on an assumed exchange rate of $1.15 per euro. The company described this outlook as clearly better than typical seasonality, with stable revenue in automotive and power systems and a moderate decline in edge systems.
The company plans investments of between €3.0 billion and €3.5 billion in fiscal 2027, and expects adjusted free cash flow of about €2.2 billion and free cash flow of about €1.8 billion. It aims to direct spending toward the growth phase it expects, while cash flow remains part of the results picture alongside revenue and profitability. Reuters said the investments would focus mainly on production in Dresden, Kulim and Villach. In fiscal 2026, revenue was €16.353 billion, up 12% year on year, and adjusted earnings per share were €1.73. That annual performance provides the comparison base for the company’s forecast of revenue near €20 billion in the following fiscal year.
The management board proposed increasing the annual dividend by €0.03 to €0.38 per share for fiscal 2026. The proposal is scheduled to be put to the annual general meeting in February 2027. The company’s shares, listed under the ticker IFNNY, closed at $55.64 on November 9, 2026, according to EL7 data. The first-quarter and fiscal 2027 outlooks remain the next key milestones for investors following the results announcement. The company links those forecasts to expanding data center power supply and demand in the automotive, energy and edge systems segments.