Infineon Sees €20 Billion in 2027 Revenue as Shares Rise 9.05%
Key Facts
Infineon reported results on November 10, 2026, for the fourth quarter and fiscal year ended September 30, and forecast revenue of nearly €20 billion in fiscal 2027. The company said revenue from power supplies for data centers could approach €4 billion that year. Following the announcement, its shares rose 9.05% to $55.8 in premarket trading, according to Investing.com, citing Reuters. The new guidance puts data-center sales at the forefront of the growth drivers identified by the company, amid broader demand for structural growth areas. Infineon also forecast a significant increase in revenue and profitability as the cyclical recovery continues.
In the fourth quarter of fiscal 2026, the company posted revenue of €4.706 billion and segment result of €1.119 billion, with a segment result margin of 23.8%. For the full fiscal year, revenue reached €16.353 billion, up 12% year over year, while adjusted earnings per share were €1.73. Annual segment result was €3.223 billion, with a margin of 19.7%, according to the company’s statement. This compares with 2027 guidance calling for revenue growth of more than 20%, with profitability expected to increase by around 5 percentage points. Chief Executive Jochen Hanebeck said, "The ongoing cyclical recovery and strong demand in structural growth areas support expectations for a significant increase in revenue and profitability in fiscal 2027."
The company expects combined revenue from power supply solutions for conventional and AI data centers to rise from €2.2 billion in 2026 to nearly €4 billion in 2027. Revenue from power solutions for AI data centers alone reached €1.7 billion in fiscal 2026, according to the conference transcript cited by Investing.com. The guidance reflects an expansion in power business serving data centers, accounting for demand from conventional and AI facilities together. The CEO named data-center power supplies among the areas contributing to expected growth. He also cited power infrastructure upgrades, electric mobility and software-defined cars as key contributors, alongside emerging opportunities in robotics and edge AI.
On profitability, the segment result margin rose to 19.7% in fiscal 2026 from 17.5% a year earlier, according to figures reported by Investing.com. Infineon expects the margin to reach the mid-20% range in 2027, in line with its forecast for profitability to increase by around 5 percentage points. Meanwhile, the company forecast free cash flow of around €1.8 billion in 2027, compared with analysts’ estimates of €2.26 billion. It estimated adjusted free cash flow at around €2.2 billion, compared with analysts’ estimates of €2.74 billion, according to Investing.com. The company plans investments of between €3.0 billion and €3.5 billion in fiscal 2027 as it targets sales growth and margin improvement.
Near-term guidance includes revenue of around €4.6 billion and a segment result margin of around 23% in the first quarter of fiscal 2027. The revenue estimate is based on an assumed exchange rate of $1.15 to the euro, according to the company’s statement. On shareholder returns, management intends to propose a €0.03 increase in the dividend to €0.38 per share at the annual general meeting in February 2027. The proposal comes alongside the announced investment plan for the next fiscal year and guidance for higher revenue and profitability. The dividend proposal is scheduled to be put to the meeting in February, while first-quarter fiscal 2027 guidance covers the period following the results announcement.