Forecast Overview
Infineon Technologies AG projected fiscal 2027 revenue of approximately €20 billion, a modest uplift over analysts’ consensus estimate of €19.81 billion. The company attributed the upside primarily to more than 20% growth in AI‑driven data‑center power demand.
Financial Guidance
The firm warned that free cash flow for FY27 will be about €1.8 billion, well below the market expectation of €2.26 billion. Adjusted free cash flow is forecast at roughly €2.2 billion versus the €2.74 billion analysts had anticipated. Adjusted gross margin is expected to sit in the mid‑to‑high 40% range, while the segment result margin is projected in the mid‑20% range.
Revenue Segments
Revenue from data‑center power‑supply products is slated to approach €4 billion. Automotive revenue is expected to rise by a mid‑teens percentage, edge‑systems revenue by a low‑teens percentage, and power‑systems revenue is forecast to grow faster than overall group revenue.
Quarterly Performance
For the fourth quarter, Infineon reported revenue of €4.71 billion, matching the €4.71 billion consensus. Segment result reached €1.12 billion, slightly above the €1.10 billion forecast, delivering a 23.8% margin versus the expected 23.3%. Net profit was €532 million, below the €677 million consensus, and diluted earnings per share from continuing operations were €0.40, compared with €0.52 expected. Adjusted diluted EPS stood at €0.60 versus €0.64 anticipated. Reported gross margin was 41.8% versus 43.2% expected, while adjusted gross margin was 45.1% versus 44.9% expected. Non‑segment result recorded a loss of €344 million, widening from the €203 million loss in the prior quarter, of which €155 million related to cost of goods sold.
First‑Quarter Outlook
Infineon expects first‑quarter FY27 revenue of about €4.6 billion and a segment result margin of roughly 23%, compared with the fourth‑quarter figures of €4.71 billion revenue and a 23.8% margin.
Capital Expenditure
The company plans capex of €3 billion to €3.5 billion, primarily directed toward expanding production capacity in Dresden (Germany), Kulim (Malaysia), and Villach (Austria). This range exceeds analysts’ expectation of €3.01 billion.
Dividend Proposal
Infineon will propose a dividend of €0.38 per share, an increase of €0.03, to be considered at its February 2027 shareholder meeting.
Exclusions
The FY27 cash‑flow forecast does not incorporate the prospective sale of Infineon’s memory business to Winbond, a transaction that could contribute up to €1 billion to free cash flow if completed.