Infineon Technolgies AG: Q3 FY 2026 concluded with record sales driven by strong AI business; further significant increase in revenue and margin expected in Q4 FY 2026

– Q3 FY 2026: Revenue €4.172 billion, Segment Result €797 million, Segment Result Margin 19.1 percent

– Outlook for Q4 FY 2026: Based on an assumed exchange rate of US$1.15 to the euro, revenue is expected to rise by a good 13 percent to around €4.7 billion. On this basis, the Segment Result Margin is forecast to be around 23 percent

– Outlook for FY 2026: Revenue is now expected to be around €16.3 billion (previously: significantly rising revenue compared with the prior year). The adjusted gross margin should continue to be in the low-to-mid-forties percentage range and the Segment Result Margin should continue to reach around 20 percent. Adjusted Free Cash Flow is now expected to be around €1.85 billion (previously €1.65 billion) and Free Cash Flow is now expected to reach around €0.9 billion (previously €1.25 billion), now including the acquisition of the sensor portfolio from ams OSRAM in July 2026

– Multi-year capacity reservation agreements with leading AI customers concluded or in negotiation, respectively, with a cumulative revenue volume of a high single-digit billion euro amount

Neubiberg, 5 August 2026 – Infineon Technologies AG today announced results for the third quarter of the 2026 fiscal year, ended 30 June 2026.

“Infineon concluded the third quarter of the 2026 fiscal year with record revenue and continues its growth trajectory,” said Jochen Hanebeck, CEO of Infineon. “An increasing number of our target markets are showing a positive trend. Our power supply solutions for AI data centers remain in very high demand and continue to be our most important growth driver. In addition, rising investment worldwide in grid infrastructure is providing tailwinds. Automotive orders are also picking up noticeably. With its product portfolio and corresponding manufacturing capacities, Infineon is very well positioned in structural growth markets – and we are translating these opportunities into profitable growth.”
 

Group performance in the third quarter of the 2026 fiscal year

In the third quarter of the 2026 fiscal year, Group revenue increased by €360 million to €4.172 billion, – the highest quarterly revenue in Infineon’s history to date – compared with €3.812 billion in the prior quarter. The 9 percent increase was the result of improved demand in all segments. Particularly noteworthy contributions to the revenue increase came from Power & Sensor Systems (PSS) with €182 million and Automotive (ATV) with €102 million.

Euro in millions	Q3 FY26	Q2 FY26	+/- in %
Revenue	4,172	3,812	9
Gross margin (in %)	40.8%	38.7%
Adjusted gross margin1 (in %)	42.8%	41.0%
Segment Result	797	653	22
Segment Result Margin (in %)	19.1%	17.1%
Profit (loss) from continuing operations	423	301	41
Profit (loss) from discontinued operations, net of income taxes	-	-
Profit (loss) for the period	423	301	41
in Euro
Basic earnings (loss) per share from continuing operations2	0.32	0.23	39
Diluted earnings (loss) per share from continuing operations2	0.32	0.23	39
Adjusted earnings (loss) per share diluted1, 2	0.44	0.34	29

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 increased by 210 basis points to 40.8 percent in the third quarter of the 2026 fiscal year, up from 38.7 percent in the previous quarter, primarily due to the significant improvement in revenue. Adjusted gross margin rose to 42.8 percent, from 41.0 percent in the second quarter of the 2026 fiscal year.

Segment Result increased to €797 million in the third quarter of the 2026 fiscal year, up from €653 million in the previous quarter. Segment Result Margin improved to 19.1 percent, from 17.1 percent in the previous quarter.

Non-Segment Result stood at minus €203 million in the third quarter of the 2026 fiscal year, compared with minus €195 million in the previous quarter. Of the total, €84 million related to cost of goods sold, €44 million to research and development expenses, and €72 million to selling and general administrative expenses. In addition, it included net operating expenses of €3 million.

Operating profit improved to €594 million in the third quarter of the 2026 fiscal year, up from €458 million in the previous quarter.

The financial result was a net expense of €63 million in the third quarter of the 2026 fiscal year, compared with a net expense of €68 million in the previous quarter.

Income taxes amounted to €112 million in the third quarter of the 2026 fiscal year, compared with €91 million in the second quarter.

Profit from continuing operations and profit for the period both improved to €423 million in the third quarter of the 2026 fiscal year, up from €301 million in the second quarter in each case.

Basic earnings per share from continuing operations and diluted earnings per share from continuing operations both rose to €0.32 in the third quarter of the 2026 fiscal year, from €0.23 previously. Adjusted earnings per share (diluted)³ improved to €0.44, from €0.34 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 €514 million in the third quarter of the 2026 fiscal year, compared with €541 million in the previous quarter. Depreciation and amortization stood at €466 million, compared with €452 million in the second quarter.

Free Cash Flow improved significantly to plus €599 million in the third quarter of the 2026 fiscal year, from minus €63 million in the second quarter.

At the end of the third quarter of the 2026 fiscal year, gross cash stood at €1,656 million, compared with €2,153 million at the end of the previous quarter. Due to the repayment of maturing financial liabilities, financial debt declined to €6,841 million at the end of the third quarter, from €7,874 million on 31 March 2026. Net cash improved to minus €5,185 million at the end of the June quarter, from minus €5,721 million at the end of March 2026.

Outlook for the fourth quarter of the 2026 fiscal year

Based on an assumed exchange rate of US$1.15 to the euro, Infineon expects to generate revenue of around €4.7 billion in the fourth quarter of the 2026 fiscal year. Moderate growth is expected for the ATV segment. In the GIP, PSS, and CSS segments, the sequential increase in revenue is expected to be significant. Segment Result Margin is forecast to be around 23 percent.

Outlook for the 2026 fiscal year

Based on an assumed exchange rate for Q4 of US$1.15 to the euro Infineon now expects revenue of around €16.3 billion for the 2026 fiscal year (previously: to increase significantly compared to the prior year). This corresponds to an annual growth rate of around 11 percent. The ATV segment is expected to grow slower than the Group average. While positive momentum in software-defined vehicles continues, it is offset by subdued demand for high-voltage components in the field of electromobility. In contrast, revenue in the PSS segment is expected to grow significantly faster than the Group average, driven by very dynamic demand for power supply products for AI data centers. For the GIP segment, annual revenue growth is expected to be slightly below the Group average, while revenue in the CSS segment is expected to remain essentially unchanged. The adjusted gross margin should remain in the low-to-mid-forties percentage range and the Segment Result Margin should continue to be around 20 percent.

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – continue to be planned at around €2.7 billion for the 2026 fiscal year. Key focus areas include completing and preparing production in the fourth manufacturing module in Dresden (Germany), as well as further manufacturing investments aligned with strongly growing customer demand for power supply solutions for AI data centers.

Depreciation and amortization is expected to total €2.0 billion in the 2026 fiscal year. Of that, around €400 million relates to depreciation and amortization resulting from purchase price allocations, mainly in connection with the acquisition of Cypress as well as Marvell’s Automotive Ethernet business. Adjusted Free Cash Flow is now expected to be around €1.85 billion (previously €1.65 billion) and Free Cash Flow – now including the purchase price payment for the acquisition of the sensor portfolio from ams OSRAM in July 2026 – is expected to reach around €0.9 billion (previously €1.25 billion).

With regard to return on capital employed (RoCE), Infineon expects to achieve a mid-to-high (previously mid) single-digit percentage.
 

Capacity reservation agreements with leading AI customers

Several leading customers across the AI data center ecosystem have entered into multi-year capacity reservation agreements with us or are currently in negotiations for such. These agreements cover a cumulative revenue volume of a high single-digit billion euro amount and feature also certain prepayments.
 

Completion of the acquisition of the sensor portfolio from ams OSRAM

Infineon Technologies AG successfully completed the acquisition of the non-optical analog/mixed-signal sensor portfolio from ams OSRAM on 1 July 2026. The acquired business currently has an annualized revenue run rate of approximately €230 million and will be consolidated into Infineon as of 1 July 2026. For fiscal year 2026, a revenue contribution in the mid-double-digit million euro range is therefore expected in the fourth quarter. From the outset, the transaction will have an accretive effect on adjusted earnings per share. With the closing of the transaction, around 230 employees in research and development and management will transfer to Infineon. Infineon is thereby expanding its presence by three new sites in Valencia (Spain), Rapperswil (Switzerland), and Hyderabad (India).

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 5 August 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 third quarter as well as the outlook for the fourth 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 Q3 Investor Presentation is available (in English only) at:

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

Infineon Financial Calendar (*preliminary)

2 September 2026 dbAccess TMT Conference, London

8 September 2026 Communacopia and Technology Conference, San Francisco

10 September 2026 Citi Global Technology Conference, New York

16-17 September 2026 Exane ESG Conference, Paris

17 September 2026 JP Morgan Milan Access Day, Milan

21 September 2026 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim

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

19-20 November 2026 Morgan Stanley TMT Conference, Barcelona

30 November 2026 UBS Tech Conference, Scottsdale

3 February 2027* Earnings Release for the First Quarter of the
2027 Fiscal Year

25 February 2027* Annual General Meeting 2027

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.

Contact:
Andre Tauber, Media Relations, phone: +49 89 234 23888