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Infineon expects fiscal 2027 revenue of about €20 billion, with data-center power supplies near €4 billion, after a record €4.706 billion fourth quarter ended Sept. 30.
Chips & Power DeskEdited by Ege Erten
3 min readAI-assisted
Infineon's own fiscal 2027 outlook: revenue of about EUR 20B at EUR/USD 1.15, a company forecast rather than a result.
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Infineon Technologies expects fiscal 2027 revenue of about €20 billion, up more than 20 percent, with sales of data-center power supplies close to €4 billion, the company said on Nov. 10 after a record fourth quarter.
Revenue for the quarter ended Sept. 30 rose 13 percent from the prior quarter to €4.706 billion, and was up 19 percent on the €3.943 billion of a year earlier, according to Infineon's results release. Segment result reached €1.119 billion, a margin of 23.8 percent against 19.1 percent in the third quarter and 18.2 percent a year earlier. Reuters, which also reported the results, carried the same revenue and margin figures.
The Power & Sensor Systems segment grew 25 percent from the prior quarter to €1.796 billion. Infineon said demand for products for AI servers and data centers remained the main growth driver. The segment's margin rose to 30.8 percent from 24.9 percent. Automotive revenue rose 8 percent to €2.089 billion, and Green Industrial Power rose 13 percent to €503 million. Connected Secure Systems fell 9 percent to €318 million, which Infineon attributed to fluctuating project business in identity documents and payment cards.
For the full year, revenue was €16.353 billion, up 12 percent, with a segment result of €3.223 billion (19.7 percent margin), adjusted earnings per share of €1.73 and adjusted free cash flow of €1.925 billion. The board intends to propose a dividend of €0.38 per share, up €0.03.
Infineon's outlook assumes a EUR/USD rate of 1.15. It expects revenue of about €4.6 billion in the first quarter, a nearly stable figure that it called significantly better than usual seasonality, with a segment margin of about 23 percent. For the full year it expects the Power Systems segment to grow significantly faster than the group, automotive revenue to rise by a mid-teens percentage and Edge Systems by a low-teens percentage. The adjusted gross margin should sit in the mid-to-high 40s percent range and the segment margin in the mid-20s.
At close to €4 billion, data-center power supplies would account for roughly a fifth of the group's guided revenue. Infineon plans €3.0 billion to €3.5 billion of investment, depending on customer demand. It named equipment for the fourth manufacturing building in Dresden, more silicon carbide capacity in Kulim, Malaysia, and the start of gallium nitride manufacturing on 300-millimeter wafers in Villach, Austria, as the main areas. Voltgrid News has covered Infineon's planned €1.1 billion 300 mm GaN line in Villach and its work with NVIDIA on 800 VDC racks.
Infineon expects adjusted free cash flow of about €2.2 billion and free cash flow of about €1.8 billion in fiscal 2027. Fourth-quarter investment was €931 million, up from €514 million in the third quarter, and net debt stood at €4.713 billion, down from €5.185 billion.
The guidance is Infineon's own forecast, not a result, and rests on the 1.15 EUR/USD assumption. It excludes the announced sale of the NOR Flash and F-RAM memory business to Winbond, which Infineon expects to close in the second half of calendar 2027 subject to regulatory approvals; the company said closing would add up to €1 billion to free cash flow. The release gives no fiscal 2026 data-center revenue figure, so the growth implied by the €4 billion target cannot be read from it. Adjusted gross margin, adjusted earnings per share and adjusted free cash flow are non-IFRS measures. The dividend proposal goes to a vote at the Annual General Meeting in February 2027.
