Infineon Technologies AG reported Q1 FY2026 revenue of €3.662 billion, a segment result of €655 million, and a segment result margin of 17.9%. Management cited strong AI-driven demand for power supply solutions against an otherwise subdued market backdrop.
Outlook for Q2 FY2026: assuming EUR/USD of 1.15, revenue is expected to be around €3.8 billion with a segment result margin in the mid-to-high-teens % range.
Full-year FY2026 outlook: based on EUR/USD of 1.15, revenue is still expected to rise moderately year on year. The adjusted gross margin is guided to the low-40s % range and the segment result margin to the high-teens % range. Infineon lifted planned investments to around €2.7 billion (previously €2.2 billion) to accelerate manufacturing capacity for AI data center power supplies. The company now targets around €2.5 billion of revenue from this area in FY2027, after about €1.5 billion in the current fiscal year. Adjusted free cash flow is now expected to be around €1.4 billion (previously €1.6 billion), and free cash flow around €1.0 billion (previously €1.1 billion).
“Infineon has made a successful start to fiscal year 2026,” said Jochen Hanebeck, CEO of Infineon. “The very dynamic demand for AI is providing strong tailwinds. To serve customers best, we are aligning capacity to rising demand and bringing forward investments, with a significant portion accelerating the ramp of our Smart Power Fab in Dresden, which opens this summer.”
Original – Infineon Technologies