Infineon Technologies has released its full-year results for fiscal 2025 (ended September 30) and outlined its outlook for fiscal 2026, emphasizing AI power solutions as a core growth area despite currency headwinds.
In FY2025, the company reported revenue of €14.662 billion, down 2% year-on-year, with a profit of €2.56 billion and a 17.5% profit margin. Adjusted earnings per share stood at €1.39. Free cash flow was impacted by the acquisition of Marvell's automotive Ethernet business, reporting -€1.051 billion, though the adjusted figure reached €1.803 billion.
The fourth quarter remained stable, with revenue of €3.943 billion, profit of €717 million, and an 18.2% margin.
For FY2026, assuming a EUR/USD exchange rate of 1:1.15, Infineon expects moderate revenue growth. Q1 revenue is projected at €3.6 billion, with a margin of 14%-19%. Full-year targets include an adjusted gross margin of 41%-43%, profit margin of 17%-19%, planned investments of €2.2 billion, and adjusted free cash flow of €1.6 billion.
Notably, Infineon has prioritized AI as a key growth engine. The company significantly raised its revenue target for AI data center power solutions to €1.5 billion in FY2026. By 2030, the addressable market for this segment is expected to expand to €8-12 billion.
In contrast, the automotive, industrial, and consumer electronics sectors face limited growth, with customers favoring short-term orders amid market caution.
ICgoodFind:Infineon’s strategic focus on AI power aligns with industry trends, positioning the company to leverage robust demand from data center expansion.
