Infineon announces results for Q4 and full fiscal year 2025: Fiscal year 2025 performance met expectations. Due to adverse currency effects, revenue in fiscal year 2026 is expected to grow moderately, with a significant increase in AI power revenue targets.
Fiscal Q4 2025: Revenue was €3.943 billion, profit was €717 million, with a profit margin of 18.2%.
Fiscal 2025: Revenue was €14.662 billion, down 2% year-on-year; profit was €2.56 billion; profit margin was 17.5%; adjusted earnings per share were €1.39; due to the acquisition of Marvell’s automotive Ethernet business, free cash flow was negative €1.051 billion; adjusted free cash flow was positive €1.803 billion.
Fiscal Q1 2026 Outlook: Assuming an exchange rate of EUR/USD 1:1.15, revenue is expected to be around €3.6 billion. Based on this, the profit margin is expected to be between 14% and 19%.
Fiscal 2026 Outlook: Assuming an exchange rate of EUR/USD 1:1.15, despite adverse currency effects, revenue is expected to achieve moderate growth compared to the previous fiscal year. Adjusted gross margin is expected to be between 41% and 43%, with a profit margin of 17% to 19%. Planned investments are approximately €2.2 billion. Considering investments in advanced fab facilities, adjusted free cash flow is expected to be around €1.6 billion, with reported free cash flow around €1.1 billion.
Infineon Technologies CEO Jochen Hanebeck said, “Despite facing challenges from a complex macroeconomic and geopolitical situation, Infineon still achieved its expected goals in fiscal year 2025, fully demonstrating the resilience of our business model. Looking ahead to fiscal year 2026, we expect moderate growth in a complex and volatile market environment. The growth momentum in the automotive, industrial, and consumer electronics markets remains limited, with many customers being cautious and preferring short-term orders. On the other hand, global investment in the AI infrastructure sector continues to grow rapidly, and we expect demand for leading power solutions for AI data centers to increase significantly. We are substantially raising our revenue targets for this business, expecting revenues in this area to reach around 1.5 billion euros in fiscal year 2026. By the end of 2030, the addressable market for Infineon in this sector is expected to reach 8 to 12 billion euros. Key factors driving our success include strong innovation capabilities, efficient development speed, excellent manufacturing standards, and a broad customer base.”
