Infineon Q3 Profit Up, Sees Revenue Growth In Q4, Updates FY26 Revenue View On AI Demand; Stock Down

Infineon Technologies AG (IFNNY,IFX.DE,1IFX.MI), a German maker of semiconductor devices, on Wednesday reported higher net profit and segment result in its third quarter, as revenues were mainly driven by high demand for power supply solutions for AI data centers.

Looking ahead for the fourth quarter, the company projects revenue to rise by 13 percent year-over-year to around 4.7 billion euros. On this basis, the Segment Result Margin is forecast to be around 23 percent.

For fiscal 2026, Infineon now expects revenue of around 16.3 billion euros, corresponding to an annual growth rate of around 11 percent. The previous outlook was significantly rising revenue compared with the prior year.

The adjusted gross margin is expected to remain in the low-to-mid-forties percentage range and the Segment Result Margin to continue to be around 20 percent.

The ATV segment is expected to grow slower than the Group average. While positive momentum in software-defined vehicles continues, it is offset by subdued demand for high-voltage components in the field of electromobility.

Jochen Hanebeck, CEO of Infineon, stated, "An increasing number of our target markets are showing a positive trend. Our power supply solutions for AI data centers remain in very high demand and continue to be our most important growth driver. In addition, rising investment worldwide in grid infrastructure is providing tailwinds. Automotive orders are also picking up noticeably."

In the third quarter, the company's bottom line totaled 423 million euros, up 39 percent from 305 million euros last year. On a continuing operations basis, profit grew 44 percent from last year's 293 million euros.

Earnings per share from continuing operations were 0.32 euro, up 45 percent from 0.22 a year earlier.

Adjusted earnings from continuing operations were 576 million or 0.44 euro per share for the period, compared to 0.37 euro last year.

Segment Result grew 19 percent from last year to 797 million euros, and segment result margin improved to 19.1 percent from prior year's 18 percent.

The company's revenue for the period rose 12.6 percent to 4.172 billion euros from 3.704 billion euros a year ago.

On the XETRA in Germany, Infineon shares were trading 3.20 percent lower, at 61.68 euros.

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