Germany's Infineon Q3 revenue rises on strong AI data center demand

Infineon Technologies AG

05/08/2026 06:43

Overview
Germany semiconductor maker's fiscal Q3 revenue rose 9% qtr/qtr to record €4.172 bln
Adjusted EPS for fiscal Q3 climbed to €0.44 from €0.34 in prior quarter
Company completed acquisition of ams OSRAM sensor portfolio, expects Q4 revenue boost

Outlook
Infineon sees Q4 revenue rising about 13% to around €4.7 bln
Company now expects FY 2026 revenue of around €16.3 bln
Infineon raises FY 2026 adjusted free cash flow forecast to €1.85 bln, lowers free cash flow to €0.9 bln

Result Drivers
AI DATA CENTER DEMAND - Co said very high demand for power supply solutions for AI data centers was its most important growth driver
GRID INFRASTRUCTURE INVESTMENT - Co said rising investment worldwide in grid infrastructure provided tailwinds
AUTOMOTIVE ORDERS - Co said automotive orders picked up noticeably in the quarter

Company press release: ID:nEQ51KWCza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
EUR 4.17 bln
 
Q3 Adjusted EPS
 
EUR 0.44
 
Q3 Net Income
 
EUR 423 mln
 
Q3 Gross Margin
 
40.80%
 
Q3 Adjusted Gross Margin
 
42.80%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Infineon Technologies AG is €90.00, about 41.2% above its August 4 closing price of €63.72
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads
Aug 3 - Onsemi forecasts upbeat revenue on surging AI data center chip demand
Aug 4 - Tower Semiconductor forecasts third-quarter revenue above estimates on AI chip demand
Aug 4 - Lattice Semiconductor Q2 profit beats estimates on AI-related server demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)