Outlook supports analyst's optimism
In a Tuesday morning note reported by dpa-AFX Analyser, Deshpande pointed to Infineon's tendency to issue cautious forecasts as a reason for optimism. He said the worst was over and the news was positive, adding that the market would likely welcome the clarity.
Infineon's fiscal 2027 forecast calls for revenue of about €20 billion, representing growth of more than 20%, and a Segment Result Margin in the mid-20% range. The outlook assumes a EUR/USD exchange rate of 1.15. For comparison, Vara Research consensus cited by Dow Jones Newswires on November 10, 2026, put analysts' average estimates at €19.806 billion in revenue and a 24.9% Segment Result Margin.
CEO Jochen Hanebeck attributed the expected significant increase in revenue and profitability to a continuing cyclical recovery and strong demand in the company's structural growth areas. He identified data-center power supplies, energy infrastructure, electromobility and software-defined vehicles as key contributors.
Revenue, spending and cash-flow forecasts
Within its fiscal 2027 outlook, Infineon projects close to €4 billion in revenue from data-center power supplies and an adjusted gross margin in the mid-to-high 40% range. It plans investments of €3.0 billion to €3.5 billion, while forecasting adjusted free cash flow of about €2.2 billion and free cash flow of about €1.8 billion.
For the first quarter of fiscal 2027, the company expects approximately €4.6 billion in revenue and a Segment Result Margin of about 23%. That forecast also assumes a EUR/USD exchange rate of 1.15.
Fiscal 2026 results and proposed dividend
Infineon's November 10 results release showed fourth-quarter revenue of €4.706 billion for the period ended September 30, 2026. Segment Result reached €1.119 billion, with a Segment Result Margin of 23.8%.
For fiscal 2026 as a whole, revenue rose 12% from a year earlier to €16.353 billion. The company recorded a Segment Result of €3.223 billion and a Segment Result Margin of 19.7%, alongside adjusted earnings per share of €1.73.
Full-year free cash flow totaled €993 million, while adjusted free cash flow was €1.925 billion.
The Management Board intends to propose a €0.03 increase in the dividend, to €0.38 per share, at the Annual General Meeting in February 2027.
