Infineon reports record 16.35 billion euro revenue and lifts its data center sales outlook

Record year driven by data centers

Infineon reported revenue of 16.353 billion euros for the fiscal year that ended in September, up 12% on the year before. Net profit rose to 1.512 billion euros from 1.015 billion, an increase of about 50%. The Neubiberg group near Munich said it had closed the year with another record quarter. Infineon does not make AI processors itself, but its power semiconductors manage energy use in data centers, and its security chips are also needed there. The figures came in above what many market experts had expected, according to CMC Markets analyst Andreas Lipkow. Shares rose as much as 7% during the session and were 2.2% higher at 49.70 euros in early afternoon, after the stock also led the DAX on 9 November.

Data centers carry the growth

Data center business is the main engine of the expansion. Infineon booked 2.2 billion euros of data center sales in the fiscal year, of which 1.7 billion came from AI data centers. For the fiscal year that has run since October, the company expects data center sales of about 4 billion euros. Earlier in the year it had said it wanted to lift its forecast for power semiconductors used in AI and traditional servers well above the previous 2.5 billion euros. Jochen Hanebeck, the chief executive, said orders already placed and orders under negotiation together exceed 10 billion euros in data centers.

Fiscal 2026 data center sales2.2

Fiscal 2026 from AI data centers1.7

Fiscal 2027 expected data center sales4

Fiscal 2026 data center sales

2.2 billion euros

Fiscal 2026 from AI data centers

1.7 billion euros

Fiscal 2027 expected data center sales

4 billion euros

Data from the article text

Hanebeck described the demand in these words:

“Our customers' demand is not only strong but also long-term in nature.”

Doubts over the AI boom

Investors have worried that the AI build-out could slow. In the US congressional midterm elections in early November, the Democrats won a landslide, and many of their candidates campaigned on stronger rules for building data centers. Construction there has so far been largely unrestricted, and in many places residents have pushed back against the facilities. Hanebeck does not share the concern. He said hyperscalers would keep finding sites, possibly outside the United States, and pointed to China, India and the Arabian Peninsula as regions with strong build-out. BearingPoint partner Wilfried Fritz said Infineon holds a strong position in the power electronics the sector needs.

Outlook for fiscal 2027

Infineon expects revenue of around 20 billion euros in fiscal 2027, a rise of just over a fifth. The company also expects profitability to improve, which should lift net profit clearly. Besides data centers, management expects a general recovery in the chip sector, software-driven cars and energy infrastructure projects to contribute. The group's market value stands at almost 70 billion euros.

Fiscal 20251.015

Fiscal 20261.512

Fiscal 2025

1.015 billion euros

Fiscal 2026

1.512 billion euros

Data from the article text