EQS-News: Infineon makes a successful start to fiscal year 2026 and accelerates AI Investments in view of further increasing market dynamics

– Q1 FY 2026: Revenue €3.662 billion, Segment Result €655 million, Segment Result Margin 17.9 percent

– Outlook for Q2 FY 2026: Based on an assumed EUR/USD exchange rate of 1.15, revenue is expected to be around €3.8 billion. The Segment Result Margin is expected to be in the mid-to-high-teens percentage range

– Outlook for FY 2026: Based on an assumed EUR/USD exchange rate of 1.15, revenue is still expected to rise moderately compared with the prior year. The adjusted gross margin should be in the low-forties percentage range and Segment Result Margin in the high-teens percentage range. Investments are now planned at around €2.7 billion (previously €2.2 billion) to further accelerate the expansion of manufacturing capacity for power supplies for AI data centers. For fiscal year 2027, revenue of around 2.5 billion is expected in this area after around 1.5 billion in the current fiscal year. Adjusted free cash flow should now amount to around €1.4 billion (previously €1.6 billion), and free cash flow is now expected to reach around €1.0 billion (previously €1.1 billion)

Neubiberg, Germany, February 4, 2026 – Infineon Technologies AG today reported results for the first quarter of fiscal year 2026, which ended on 31 December 2025.

“Infineon has made a successful start to fiscal year 2026,” said Jochen Hanebeck, CEO of Infineon. “The very dynamic demand for AI, against an otherwise subdued market backdrop, is providing strong tailwinds to Infineon. At present, the focus is on power supply solutions for AI data centers; in the coming years, the expansion of grid infrastructure will be added. To serve our customers in the best possible way, we are aligning our manufacturing capacity to meet further rising demand and are bringing forward our investments in this area. A significant portion will go toward accelerating the ramp-up of our new Smart Power Fab in Dresden, which we will open this summer – at exactly the right time.”

Group performance in the first quarter of fiscal year 2026

In the first quarter of fiscal year 2026, due to seasonality Group revenue decreased to €3,662 million, from €3,943 million in the previous quarter. The 7 percent decline in revenue affected all four segments and was moderate in Automotive (ATV) and Power & Sensor Systems (PSS), and significant in Green Industrial Power (GIP) as well as Connected Secure Systems (CSS).

¹ The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at https://www.infineon.com/about/investor/reports-presentations/financial-results.

² The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

Gross margin rose in the first quarter of the current fiscal year significantly to 39.9 percent, from 38.1 percent in the previous quarter. The adjusted gross margin was 43.0 percent, compared with 40.7 percent in the fourth quarter of fiscal year 2025.

The Segment Result decreased by 9 percent in the first quarter of fiscal year 2026 to €655 million, from €717 million in the previous quarter. The Segment Result Margin was 17.9 percent, compared with 18.2 percent in the previous quarter.

Non-Segment Result was minus €267 million in the first quarter of fiscal year 2026, compared with minus €263 million in the previous quarter. Of the total, €113 million related to cost of goods sold, €35 million to research and development expenses, and €77 million to selling, general and administrative expenses. In addition, net other operating expenses amounted to €42 million.

In the first quarter of fiscal year 2026, operating profit amounted to €388 million, compared with €454 million in the previous quarter.

The financial result was minus €56 million in the first quarter of the current fiscal year, compared with minus €64 million in the fourth quarter of fiscal year 2025.

Tax expense stood at €82 million in the first quarter of the current fiscal year, compared with €152 million in the previous quarter which had included valuation effects related to deferred taxes.

Result from continuing operations rose in the first quarter of the current fiscal year to €256 million, from €239 million in the fourth quarter. Result from discontinued operations stood at €0 million, compared with minus €8 million in the previous quarter. As a result, profit for the period improved to €256 million in the first quarter, from €231 million in the fourth quarter.

Basic earnings per share from continuing operations and diluted earnings per share from continuing operations improved in the first quarter of fiscal year 2026 to €0.19 each, from €0.18 each in the previous quarter. Adjusted earnings per share³ (diluted) rose slightly in the first quarter of the current fiscal year to €0.35, from €0.34 in the fourth quarter.

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – amounted to €582 million in the first quarter of the current fiscal year, compared with €451 million in the previous quarter. Depreciation and amortization stood at €478 million in the first quarter of fiscal year 2026, compared with €484 million in the fourth quarter.

Free cash flow was minus €199 million in the first quarter of the current fiscal year, compared with minus €1,276 million in the fourth quarter of fiscal year 2025. The fourth quarter included the purchase price payment for the acquisition of Marvell’s automotive Ethernet business in the amount of €2,180 million equivalent.

At the end of the first quarter of fiscal year 2026, gross cash stood at €1,849 million, compared with €2,102 million at the end of the previous quarter. At the end of December 2025, financial debt amounted to €6,829 million and was unchanged from the level as of September 30, 2025. Net cash stood at minus €4,980 million, compared with minus €4,727 million at the end of the previous quarter.

Outlook for the second quarter of fiscal year 2026

For the second quarter of fiscal year 2026, Infineon expects revenue of around €3.8 billion, based on an assumed EUR/USD exchange rate of 1.15. Revenue in the ATV and CSS segments is expected to remain roughly stable compared with the prior quarter. A moderate increase is expected for the GIP segment and a significant increase for PSS. The Segment Result Margin is expected to be in the mid-to-high-teens percentage range.

Outlook for fiscal year 2026

Based on an assumed exchange rate of US$1.15 to the euro, Infineon expects revenues in the 2026 fiscal year to grow moderately compared with the 2025 fiscal year. Currency effects will have an adverse impact on revenue growth. The growth rate of the ATV segment is expected to be lower than the Group average. Subdued demand in the
e-mobility segment is being offset by strong momentum for software-defined vehicles. In contrast, revenue in the PSS segment is expected to grow at a much faster rate than the Group average, driven by very dynamic demand for products for power supply of AI data centers. Compared with the prior year, revenue in the GIP segment is expected to increase slightly and revenue in the CSS segment should stay flat. The adjusted gross margin should be in the low-forties percentage range and the Segment Result Margin in the high-teens percentage range.

Due to the very dynamic demand in artificial intelligence, investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – will increase by about €500 million in fiscal year 2026. In view of future revenue potential, investments of around €2.7 billion are now planned for the current fiscal year, up from €2.2 billion previously expected. The key focus areas remain completion and production ramp of the fourth fab module at the Dresden site (Germany), as well as additional manufacturing investments aligned with rapidly growing customer demand for power supplies for AI data centers. In this area, revenues of around €2.5 billion are expected in fiscal year 2027, up from around €1.5 billion in the current fiscal year.

Depreciation and amortization in fiscal year 2026 is still expected to total €2.0 billion.
Of that amount, around €400 million relates to depreciation and amortization from purchase price allocations, primarily in connection with the acquisition of Cypress and Marvell’s automotive Ethernet business. Adjusted free cash flow is expected at around €1.4 billion following the increase in investments, compared with €1.6 billion previously. Free cash flow is now expected to reach approximately €1.0 billion (previously €1.1 billion).

Return on capital employed (RoCE) is expected to come in at a mid-single-digit percentage.

The outlook for the 2026 fiscal year excludes the planned acquisition of the  sensor portfolio from ams OSRAM which was announced by press release on 3 February 2026. In particular, it does not take account of the purchase price payment of €570 million, the debt that is intended to be raised to finance the acquisiton as well as the expected revenue for the fiscal year 2026, since the transaction is still subject to customary closing conditions and regulatory approvals. The closing is expected in the second quarter of the calendar year 2026.

³ Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or as superior performance indicator, but rather as additional information to profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS.

Infineon’s segments’ performance in the first quarter of the 2026 fiscal year can be found in the quarterly information at https://www.infineon.com/about/investor/reports-presentations/financial-results

All figures in this quarterly information are preliminary and unaudited.

Press and analyst conference call

On 4 February 2026 the Management Board of Infineon will host a press conference call with the media at 8:00 am (CET), 2:00 am (ET). It can be followed over the Internet in both English and German. In addition, a conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CET), 3:30 am (ET). During both conferences, the Infineon Management Board will present the Company’s results for the first quarter as well as the outlook for the second quarter and the 2026 fiscal year. The conferences will also be available live and as replay on Infineon’s website at https://www.infineon.com/about/investor/reports-presentations/financial-results

The Q1 Investor Presentation is available (in English only) at:

https://www.infineon.com/about/investor/reports-presentations/financial-results

Infineon Financial Calendar (*preliminary)

19 February 2026 Annual General Meeting 2026, Munich

26 February 2026 SIG Fifteenth Annual Technology Conference, New York

3 March 2026 Morgan Stanley TMT Conference, San Francisco

5 – 6 March 2026 Oddo BHF TMT Forum, virtual

9 March 2026 BNP Paribas Exane TMT Conference, London

10 March 2026 Citi TMT Conference, London

19 March 2026 Bernstein ESG Conference, Paris

6 May 2026* Earnings Release for the Second Quarter of the
2026 Fiscal Year

5 August 2026* Earnings Release for the Third Quarter of the
2026 Fiscal Year

10 November 2026* Earnings Release for the Fourth Quarter and the
2026 Fiscal Year

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 57,000 employees worldwide (end of September 2025) and generated revenue of about €14.7 billion in the 2025 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

Further information is available at https://www.infineon.com/

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D I S C L A I M E R

The condensed Consolidated Statement of Financial Position, the condensed Consolidated Statement of Profit or Loss and the condensed Consolidated Statement of Cash Flows have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The disclosures required by IAS 34 are not made.

The same accounting policies are applied as in the most recently published consolidated financial statements as of 30 September 2024. An exception to this principle is the application of new and revised standards and interpretations that have become effective during the year as well as a change in accounting policy as of 1 October 2024, relating to certain expenses that are now recognized in research and development costs instead of cost of sales.

The Quarterly Group Statement is prepared in accordance with the Frankfurt Stock Exchange’s stock exchange regulation 53 paragraph.

The Quarterly Group Statement contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this Quarterly Group Statement and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

All figures mentioned in this Quarterly Group Statement are unaudited.