Gasgoo Munich - On February 4, Infineon Technologies AG released its financial report for the first quarter of fiscal 2026 (covering October 1 to December 31, 2025). The results show revenue of 3.66 billion euros and a profit of 655 million euros for the quarter, yielding a profit margin of 17.9% and marking a smooth start to the fiscal year.
Image source: Infineon (same below)
Looking ahead, Infineon projects second-quarter revenue of roughly 3.8 billion euros, assuming a euro-to-dollar exchange rate of 1.15. The company forecasts a profit margin between 14% and 19% for the quarter. For the full fiscal year, revenue is expected to achieve mild growth compared to the previous year, with an adjusted gross margin of 40% to 43% and a profit margin maintained between 17% and 19%.
On the investment front, Infineon plans to raise its annual spending to 2.7 billion euros, up from a previous target of 2.2 billion, focusing on expanding capacity for power solutions in artificial intelligence data centers. Revenue in this sector is projected to reach 2.5 billion euros in fiscal 2027, compared to about 1.5 billion euros this fiscal year. Adjusted free cash flow is now seen at around 1.4 billion euros, down from a prior forecast of 1.6 billion, while free cash flow is expected to land at 1 billion euros, compared to an earlier estimate of 1.1 billion.
Robust demand in the artificial intelligence sector has become a core engine for growth, offsetting a relative downturn in other markets, according to Infineon CEO Jochen Hanebeck. He noted that power solutions for AI data centers remain a top priority, adding that the expansion of grid infrastructure is set to become a key focus area in the coming years.
Hanebeck pointed out that Infineon is adjusting manufacturing capacity to meet this sustained demand, investing early in the sector. "A significant portion will be used to accelerate the mass production process at our new Smart Power Fab in Dresden," he said. "The facility will officially open this summer, a timing that aligns perfectly with market developments."
