Infineon Technologies (IFX) investor relations material

Executive summary

• Achieved record Q3 FY2026 revenue of €4.17 billion, up 13% year-over-year and 9% sequentially, driven by strong AI-related infrastructure, data center investments, and broad-based demand across all segments.

• Segment Result reached €797 million, margin 19.1%, up from 17.1% in Q2 FY2026, fully in line with guidance.

• All divisions contributed to growth, with Power & Sensor Systems and Automotive as key drivers; industrial and automotive markets showed sequential improvements.

• Major milestones include the Dresden smart power fab opening and the acquisition of ams OSRAM's sensor portfolio.

• Free Cash Flow improved to €599 million from minus €63 million in the prior quarter.

Financial highlights

• Q3 FY2026 revenue: €4.17 billion, up 13% year-over-year and 9.4% sequentially; Segment Result: €797 million, margin 19.1%.

• Adjusted gross margin for Q3 FY2026: 42.8%; reported gross margin: 40.8%.

• Free Cash Flow: €599 million; investments: €514 million; depreciation & amortization: €466 million.

• Net debt at €5,721 million; gross cash at €1,656 million; net cash position improved sequentially.

• Order backlog increased to nearly €30 billion.

Outlook and guidance

• Q4 FY2026 revenue expected at ~€4.7 billion, up 13% sequentially; Segment Result Margin forecast at ~23%.

• FY2026 revenue guidance raised to ~€16.3 billion (11% annual growth); adjusted gross margin in low-to-mid 40% range; Segment Result Margin around 20%.

• Adjusted Free Cash Flow guidance raised to €1.85 billion; reported Free Cash Flow revised to €0.9 billion, reflecting the ams OSRAM acquisition.

• Investments for FY2026 planned at €2.7 billion.

• Material upgrade to 2027 AI data center revenue projection expected in November.