EQS-News: Growth prospects improved: Infineon raises full-year guidance. AI boom strengthens further. Automotive order intake improves. Revised segment structure effective from the fourth quarter

– Q2 FY 2026: Revenue €3.812 billion, Segment Result €653 million, Segment Result Margin 17.1 percent

– Outlook Q3 FY 2026: Based on an assumed EUR/USD exchange rate of 1.17, revenue of about €4.1 billion is expected. The Segment Result Margin is forecast to be in the high-teens percent range

– Outlook FY 2026: Based on an assumed EUR/USD exchange rate of 1.17 (previously 1.15), revenue is now expected to rise significantly year-on-year (previously moderate increase). The adjusted gross margin should be in the low-to-mid forties percent range (previously low forties percent range) and the Segment Result Margin should reach around 20 percent (previously high-teens percent range). Adjusted Free Cash Flow is now expected to be around €1.65 billion (previously €1.4 billion) and Free Cash Flow should reach around €1.25 billion (previously €1.0 billion)

– Effective from Q4 FY 2026, the number of business segments will be reduced from four to three. The revised organization will consist of Automotive (ATV), Power Systems (PS), and Edge Systems (ES)

Neubiberg, 6 May 2026 – Today, Infineon Technologies AG is reporting results for the second quarter of the 2026 fiscal year (period ended 31 March 2026).

“Infineon fully achieved its targets in the first half of the fiscal year,” said Jochen Hanebeck, CEO of Infineon. “In the second half, we will grow more strongly than previously expected, with a broader upcycle across many end markets now in sight. The AI boom strengthens further, and our power supply solutions for AI data centers are in very high demand. The expansion of power infrastructure is gaining momentum and is becoming an increasingly important growth driver for our industrial business. In Automotive, we are seeing positive developments, especially in software-defined vehicles, dampened by a challenging high-voltage business for e-mobility. Further market share gains in Automotive confirm we are overall on the right track. We are entering the second half of the year with confidence, while continuing to closely monitor geopolitical and macroeconomic risks. We are consistently developing and streamlining our organizational structure. With a clearer ownership of focus applications, we bring innovative system solutions to customers faster and accelerate decision-making.”

Group performance in the second quarter of the 2026 fiscal year

In the second quarter of the 2026 fiscal year, Group revenue rose by €150 million to €3,812 million, compared with €3,662 million in the previous quarter. The 4 percent increase was driven by improved demand in the Automotive (ATV), Green Industrial Power (GIP), and Power & Sensor Systems (PSS) segments. Revenue in the Connected Secure Systems (CSS) segment remained nearly unchanged.

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 in the second quarter of the current fiscal year was 38.7 percent, compared with 39.9 percent in the previous quarter. The adjusted gross margin was 41.0 percent, compared with 43.0 percent in the first quarter of the 2026 fiscal year. The decline in gross margin in the second quarter was due to lower revenue in the business relating to high-voltage components for electric vehicles and costs associated with the restructuring of this business. In addition, price adjustments at the beginning of the year occurred as planned.

Segment Result in the second quarter of the 2026 fiscal year stood at €653 million, virtually unchanged from €655 million in the previous quarter. The Segment Result Margin was 17.1 percent, compared with 17.9 percent in the previous quarter.

Non-Segment Result was minus €195 million in the second quarter of the 2026 fiscal year, compared with minus €267 million in the previous quarter. Of the total amount, €85 million related to cost of goods sold, €29 million to research and development expenses, and €52 million to selling, general and administrative expenses. In addition, there were other operating expenses (net) of €29 million.

In the second quarter of the 2026 fiscal year, operating profit rose to €458 million, compared with €388 million in the previous quarter.

Financial result in the second quarter of the current fiscal year was minus €68 million, compared with minus €56 million in the previous quarter.

Tax expense in the second quarter of the 2026 fiscal year amounted to €91 million, compared with €82 million in the first quarter.

Income from continuing operations improved to €301 million in the second quarter of the current fiscal year, compared with €256 million in the first quarter. Profit for the period also rose to €301 million, compared with €256 million in the first quarter of the current fiscal year.

Basic earnings per share from continuing operations and diluted earnings per share from continuing operations both improved to €0.23 in the second quarter of the 2026 fiscal year, compared with €0.19 in each case previously. Adjusted earnings per share (diluted)³ were €0.34 in the second quarter of the current fiscal year, compared with €0.35 in the previous 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 €541 million in the second quarter of the current fiscal year, compared with €582 million in the previous quarter. Depreciation and amortization stood at €452 million in the second quarter of the 2026 fiscal year, compared with €478 million in the first quarter.

Free Cash Flow stood at minus €63 million in the second quarter of the current fiscal year, compared with minus €199 million in the first quarter of the 2026 fiscal year.

At the end of the second quarter of the 2026 fiscal year, the gross cash position amounted to €2,153 million, compared with €1,849 million at the end of the previous quarter. At the end of March 2026, financial debt totaled €7,874 million, compared with €6,829 million as of 31 December 2025. The net cash amounted to minus €5,721 million as of 31 March 2026, compared with minus €4,980 million at the end of the previous quarter.

Outlook for the third quarter of the 2026 fiscal year

In the third quarter of the 2026 fiscal year, based on an assumed EUR/USD exchange rate of 1.17, Infineon expects revenue to reach about €4.1 billion. Slight growth is expected in the ATV segment. In the GIP, PSS and CSS segments, revenue growth quarter-on-quarter should be significant. The Segment Result Margin is forecast to be in the high-teens percent range.

Outlook for the 2026 fiscal year

Based on an assumed EUR/USD exchange rate of 1.17 for the second half of the fiscal year (previously 1.15), Infineon now expects revenue in the 2026 fiscal year to rise significantly year-on-year (previously moderate increase), despite negative currency effects. Growth in the ATV segment is expected to be lower than the Group average. The subdued demand for high-voltage components for e-mobility is being offset by the positive momentum in the area of software-defined vehicles. In contrast, revenue in the PSS segment is expected to grow significantly faster than the Group average, driven by very dynamic demand for products used in power supply solutions for AI data centers. For the GIP segment, revenue is expected to rise moderately year-on-year, while revenue in the CSS segment is expected to remain roughly unchanged. The adjusted gross margin should now be in the low-to-mid forties percent range (previously low-forties percent range), and the Segment Result Margin should reach around 20 percent (previously high-teens percent range). This outlook does not take into account the risk of a weakening of the global economy resulting from a further escalation of the conflict in the Middle East or other unexpected geopolitical developments.

For the 2026 fiscal year, investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are still planned at around €2.7 billion. Key focus areas include the completion and start-up of production in the fourth module building in Dresden (Germany), as well as further manufacturing investments aligned with the rapidly growing customer demand for power supply solutions for AI data centers. In this area, notwithstanding a weaker currency, revenue of around €1.5 billion is expected for the 2026 fiscal year and around €2.5 billion for the 2027 fiscal year.

Depreciation and amortization is expected to amount to €2.0 billion in the 2026 fiscal year. Around €400 million of that relates to depreciation and amortization from purchase price allocations, mainly in connection with the acquisition of Cypress as well as the Automotive Ethernet business from Marvell. Adjusted Free Cash Flow is now expected to be around €1.65 billion, compared with €1.4 billion previously. Free Cash Flow should reach around €1.25 billion (previously €1.0 billion).

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

The outlook for the 2026 fiscal year is presented without taking into account the planned acquisition of the sensor portfolio from ams OSRAM, which was announced in a press release on 3 February 2026. In particular, neither the purchase price payment of €570 million nor the expected revenue for the 2026 fiscal year are included, as the transaction is still subject to customary closing conditions. Completion of the transaction is expected in the second quarter of calendar year 2026.

Revised segment structure effective from the fourth fiscal quarter

Effective 1 July 2026, Infineon will reduce the number of its business segments from four to three. The revised organization will comprise Automotive (ATV), Power Systems (PS), and Edge Systems (ES). This will enable a clearer allocation of business responsibility for focus applications. Innovative system solutions can thus generate value for customers more quickly. Internally, decision-making paths will be accelerated and the organization streamlined.

ATV will assume a limited number of automotive-specific applications in the on-board charger area from other segments, but will otherwise largely retain its current scope.
PS will be responsible for all non-automotive applications in which power semiconductors are the system-defining element. This includes, for example, power supplies for AI data centers, power generation and grid infrastructure, as well as other industrial and communications applications. PS will be formed by combining GIP with the power part of PSS. ES will focus on applications that connect the physical with the digital world, where the interplay of microcontrollers, sensors, connectivity, and security is crucial. Examples include Edge AI, robotics, industrial automation, and home appliances. ES will be created by combining CSS with the sensor, RF and USB business from PSS.

For reporting purposes, the revised segment structure will be applied from its effective date in the fourth quarter of the current fiscal year. Financial metrics for historical comparative periods will be provided on a pro forma basis.

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 second 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 6 May 2026 the Management Board of Infineon will host a press conference call with the media at 8:00 am (CEST), 2:00 am (EDT). 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 (CEST), 3:30 am (EDT). During both conferences, the Infineon Management Board will present the Company’s results for the second quarter as well as the outlook for the third 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 Q2 Investor Presentation is available (in English only) at:

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

Infineon Financial Calendar (*preliminary)

18 May 2026 JPM Global TMT Conference, Boston

20 May 2026 Berenberg European Conference, New York

20 May 2026 UBS Technology, Media and Internet Conference, London

21 May 2026 JPM TMT Conference, London

27 May 2026 DB Access Championship Conference, Frankfurt

2 June 2026 Bank Pekao Technology & Consumer Conference, virtual

2 June 2026 BofA Global Tech Conference, San Francisco

2–3 June 2026 BNP Paribas CEO Conference, Paris

8 June 2026 Barclays EMEA Technology Conference, London

9 June 2026 BofA C-Suite TMT Conference, London

9 June 2026 PCIM, Nuremberg

23 June 2026 Jefferies German & Swiss Corporate Conference, Baden-Baden

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.