The latest
Infineon Technologies expects revenue of about €16.3 billion in its fiscal year ending September, compared with €14.66 billion in fiscal 2025, as demand accelerates for power-supply chips used in artificial-intelligence data centers. The German chip maker had previously projected significant growth without specifying a figure. Chief Executive Jochen Hanebeck described AI data-center power solutions as Infineon’s most important growth driver, amid heavy spending by major technology companies on energy-intensive infrastructure.
Details
- AI outlook: The company raised its fiscal 2026 AI revenue forecast to more than €1.6 billion from approximately €1.5 billion. Its current projection for AI revenue in the following fiscal year is about €2.5 billion, a figure Hanebeck said would be upgraded.
- Capacity agreements: Infineon said it had secured multiyear capacity agreements for AI data centers with several customers and was discussing additional deals. Signed agreements cover a cumulative revenue volume in the high-single-digit billions of euros, with some customers also providing prepayments.
- Quarterly revenue: Revenue for the three months through June increased 13% from a year earlier to €4.17 billion. That exceeded the €4.13 billion expected by analysts surveyed by Vara Research and reflected the strengthening demand environment.
- Profit measures: Net profit rose to €423 million from €305 million but missed analysts’ €452 million forecast. Segment result increased to €797 million from €668 million, producing a 19.1% margin, below expectations of €809 million and 19.6%, respectively.
- Near-term guidance: For the quarter ending September, Infineon expects revenue of approximately €4.7 billion, up from €3.94 billion a year earlier. It projects a segment result margin of about 23%, compared with 18.2% previously and a 23.7% analyst consensus.
- Cars and shares: Hanebeck said automotive chip orders were picking up noticeably after carmakers spent recent years reducing inventories accumulated during the pandemic. Infineon shares fell more than 3% in Frankfurt as investors focused on the margin shortfall, although the stock remained more than 60% higher since January.
- Peer comparison: The revision mirrors a wider semiconductor trend. Rival STMicroelectronics, a SpaceX supplier, raised its data-center revenue target in July for the second time in 2026, just over a month after its first increase, as chip makers benefited from expanding AI infrastructure spending.
Between the lines
The share decline despite stronger revenue guidance indicates that investors are assessing the AI expansion through profitability as well as sales. Infineon’s quarterly revenue beat forecasts, but its principal profit measures and projected September-quarter margin fell short of consensus.
What’s next
Infineon plans to update its approximately €2.5 billion AI revenue projection for the next fiscal year in November. The announcement will show how much additional demand is supported by signed capacity agreements and continuing customer negotiations.
