Quarterly Revenue Growth
Q2 revenue of EUR 3.812 billion, up 4% quarter-on-quarter and up 6% year-on-year (over 14% year-on-year on a currency-adjusted basis).
Infineon
· IFNNY
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +29.58%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call presented a broadly positive picture: revenue, backlog and AI-related businesses are strengthening, PSS and GIP margins improved, full-year revenue and margin guidance were raised, and investments (capex and a new fab) position the company to capture AI and power-market growth. Offsetting these positives are notable challenges in the automotive high-voltage business that materially hurt automotive margins, margin pressure at the company level, some segment weakness (CSS), near-term negative free cash flow for the quarter, and macro/supply-cost headwinds. On balance, the operational momentum and upgraded guidance outweigh the specific challenges.
Company Guidance
Infineon raised its outlook and provided detailed numeric guidance: Q2 revenue was EUR 3.812bn (up 4% QoQ, 6% YoY, >14% currency‑adjusted) with segment earnings of EUR 653m and a 17.1% margin (down from 17.9%), order backlog rose EUR 4bn to ~EUR 25bn (+~25% YoY) and Q2 free cash flow was -EUR 63m (vs -EUR 199m prior). Automotive revenue was EUR 1.830bn (segment earnings EUR 331m, margin 18.1%, high‑voltage ~7% of ATV revenue); GIP revenue EUR 403m (+15% QoQ) with EUR 47m earnings (11.7% margin); PSS revenue EUR 1.260bn (+8% QoQ) with EUR 257m earnings (20.4% margin) and confirmed AI power‑supply revenues of EUR 1.5bn in FY2026 and EUR 2.5bn in FY2027. For Q3 Infineon expects ~EUR 4.1bn revenue (~+8% QoQ) and a high single‑digit percentage segment profit margin; for FY2026 it now guides revenue >EUR 16bn (2025: ~EUR 14.7bn) and a ~20% segment profit margin (up from prior high‑single‑digit view), assumes USD/EUR ~1.17 (vs 1.15), plans capex ~EUR 7.2bn (including ~EUR 500m accelerated AI investments) and raises reported FCF to ~EUR 1.25bn (adjusted FCF ~EUR 1.65bn).
Strong Order Backlog Expansion
Order backlog increased by approximately EUR 4 billion quarter-on-quarter to around EUR 25 billion, representing ~25% year-on-year growth and continuing to grow into the current quarter.
Improving Free Cash Flow and Raised Full-Year FCF Outlook
Q2 free cash flow improved to minus EUR 63 million (from minus EUR 199 million prior quarter). Full-year reported free cash flow forecast raised to ~EUR 1.25 billion (from EUR 1.0 billion) and adjusted free cash flow to ~EUR 1.65 billion (from EUR 1.4 billion).
Power & Sensor Systems (PSS) Momentum
PSS revenue EUR 1.260 billion, up 8% quarter-on-quarter; segment earnings EUR 257 million; margin improved to 20.4% (from 17.4%). AI data center power solutions remain in allocation; company confirms FY revenue targets for AI power solutions of EUR 1.5 billion (fiscal year) and EUR 2.5 billion (fiscal 2027).
Green Industrial Power (GIP) Recovery
GIP revenue EUR 403 million, up 15% quarter-on-quarter (after seasonal weakness); segment earnings EUR 47 million; margin increased to 11.7% from 8.9%, driven by higher sales and lower factory vacancy costs.
Automotive Market Leadership and MCU Share Gains
Infineon defended global leadership in automotive semiconductors for the sixth consecutive year (2025) and grew microcontroller market share from 32% to 36% year-on-year.
Upgraded Full-Year Guidance
Group now expects fiscal 2026 revenue of more than EUR 16 billion (vs EUR 14.7 billion in 2025) and a segment profit margin of around 20% (up from a prior high single-digit margin expectation). Q3 revenue guidance approx. EUR 4.1 billion (~8% growth quarter-on-quarter).
Capacity Investments and Fab Opening
Capital expenditure plan of ~EUR 7.2 billion for the year (including ~EUR 500 million accelerated AI-related investments). Official opening of the Dresden smart power fab confirmed for July 2 to support analog/mixed-signal and power growth.
Technology Traction in AI and Advanced Materials
Ramp-up of gallium nitride (GaN) solutions for AI data centers with increasing customer adoption; silicon carbide (SiC) business showing low double-digit growth in current fiscal year. Semiconductor value per kW metric averaged ~USD 175, reflecting expanding addressable market.
Design Wins and Customer Momentum
Notable design wins include BMW Neue Klasse adoption of Infineon AURIX/TRAVEO MCUs, BRIGHTLANE connectivity and power management ICs; multiple design wins with Geely for MCUs and analog semiconductors, supporting continued automotive content growth.
Operator
Good morning, and welcome to the conference call on the results of the Second Quarter of Fiscal 2026 of Infineon Technologies AG. I'm Matilda, your Chorus Call operator [Operator Instructions] And that the conference call will be recorded. [Operator Instructions] The conference may not be recorded for publication. I would now like to hand the floor to Florian Martens, Chief Communications Officer. Please, sir, go ahead.
Florian Martens
Thank you so much. Good morning, ladies and gentlemen, and dear colleagues and coworkers, welcome to our conference call regarding the results of the second quarter of fiscal 2026. Representing the Infineon Management Board at this conference are, as usual, Jochen Hanebeck, Chairman of the Board of Management; and Dr. Sven Schneider, Chief Financial Officer. Dear listeners, as usual, Mr. Hanebeck will first provide you with an overview of the business performance and the outlook. Afterwards, both members of the Management Board will be available to answer any questions you may have. Our conference call will end promptly at 8:45 a.m.
Of course, our press team, led by Andre Tauber and I will remain at your disposal afterwards. Having said that, I'll hand the floor over to Jochen Hanebeck now.
Jochen Hanebeck
Thank you very much, Florian. Hello, and a warm welcome from me as well. Esteemed listeners, after 10 days in space, the Artemis I mission returned to earth about 3 weeks ago, 4 astronauts landed back safely on earth. The successful mission has once again proven that Infineon semiconductor solutions function reliably in all situations even under the extreme conditions of s...
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