Infineon lifts FY2025/26 revenue 12% to €16.35 billion

By Amara Osei

Infineon closed its 2025/26 financial year in September with record revenue of €16.35 billion, up 12%, and net profit of €1.51 billion, an increase of almost half.

The result exceeded what many market analysts expected. CMC Markets analyst Andreas Lipkow said: “Infineon can surpass analysts’ expectations and underlines its role as one of the potential beneficiaries of the global AI investment boom.”

Shares rose by as much as 7% intraday, making Infineon the strongest DAX performer, as on Monday. In early-afternoon trading, the stock stood 2.2% higher at €49.70.

How does Infineon monetize the AI build-out?

Infineon does not manufacture AI chips. It supplies power semiconductors that data centers need for energy management, plus security chips that the facilities also require. This mix has made Infineon one of Germany’s largest AI-infrastructure beneficiaries despite its lack of processor exposure.

“Infineon has completed 2025/2026 with another record quarter and starts the new fiscal year with sustained strong momentum,” CEO Jochen Hanebeck said. His semiconductor solution areas were:

• Data-center power supply
• Expansion and modernization of energy infrastructure
• Electric mobility
• Software-defined vehicles

Infineon raised its revenue forecast for power semiconductors used in AI and traditional servers to nearly €4 billion. The company had said in summer that it would significantly lift its previous €2.5 billion estimate.

Takeaway: Infineon’s AI-linked growth comes from power management and security chips, not from AI processors.

How strong is Infineon’s position in Germany?

Infineon, alongside Siemens Energy, remains one of the German economy’s biggest hopes for participation in the global AI-infrastructure expansion. BearingPoint partner Wilfried Fritz said Infineon holds a strong competitive position in the power electronics required for that build-out.

At almost €70 billion in market value, the Neubiberg-based chipmaker near Munich ranks among Germany’s ten most valuable companies.

Takeaway: Infineon holds a top-ten German valuation and a strong competitive position in AI power electronics.

Has the automotive business recovered?

Infineon’s automotive-chip business grew 8% in the latest quarter and still accounts for just under half of group revenue. The segment benefited mainly from rising demand for electric vehicles as fuel prices remained high.

Takeaway: The automotive business has returned to growth while still supplying almost half of group revenue.

Can AI demand withstand resistance and regulation?

Hanebeck does not share current concerns that AI demand could fade under greater resistance to data centers or stricter regulation. He acknowledged a counter-reaction but said large technology groups would continue to find locations for their facilities, potentially outside the United States.

He also cited strong expansion in China, India and on the Arabian Peninsula. Hanebeck said customer demand was not only strong but also planned for the long term. Infineon has roughly €10 billion in longer-term customer delivery agreements tied to AI.

The company expects total revenue in the new fiscal year 2026/27 to increase by more than one-fifth, to €20 billion.

Takeaway: Management’s more-than-€20 billion forecast rests in part on roughly €10 billion of longer-term AI delivery agreements.

How have Infineon shares and the DAX reacted?

From its June record high of nearly €90, Infineon shares had lost up to 50% during recent AI-sector concerns. Even after that fall, the stock remained up 40% for the year and ranked among the DAX’s strongest performers.

Two trading days after a sharp market drop, the DAX gained 1.2% to 26,586 points in early-afternoon trading, close to Thursday’s 26,692 record. Infineon supported the recovery.

Takeaway: The results lifted Infineon on the day and helped pull the DAX back toward its record.