Infineon Forecasts 20% Revenue Surge on Data Center Demand

Infineon Technologies AG is forecasting a significant revenue surge of over 20% in fiscal year 2027, reaching approximately €20 billion, fueled by robust demand for its power chips used in artificial intelligence data centers. The projections, announced November 10th, mark a substantial increase from the €16.353 billion reported for fiscal year 2026, a 12% increase from the prior year.

The projected growth is heavily weighted towards the power solutions segment, with revenue from data center power supplies expected to reach nearly €4 billion in the coming year. This highlights the strategic importance of this market for Infineon, aligning with broader trends in AI infrastructure buildout. The company also anticipates an improvement in profitability, targeting a Segment Result Margin in the mid-20% range, up from 19.7% in fiscal year 2026. This margin expansion is supported by a 45.1% adjusted gross margin in Q4 FY26, an increase of 4.3 percentage points from the prior quarter.

Beyond revenue and profitability, Infineon intends to propose a dividend increase of €0.03 to €0.38 per share to shareholders, reflecting increased confidence in its financial performance. The company also plans to invest between €3.0 and €3.5 billion in fiscal year 2027, primarily focused on expanding manufacturing capacity for silicon carbide, gallium nitride, and backend operations in strategic locations like Germany, Malaysia, and Austria. Free Cash Flow is expected to reach approximately €1.8 billion, supporting these investments and shareholder returns.

These results and projections underscore Infineon's positioning within the semiconductor industry's key growth areas. The company’s strong performance in Q4 FY26, with a 13% revenue increase to €4.706 billion and a 40% jump in Segment Result to €1.119 billion, provides a solid foundation for continued expansion. The anticipated revenue growth and improved profitability, coupled with strategic investments in key technologies, suggest Infineon is well-positioned to capitalize on the increasing demand for semiconductor solutions in AI, automotive, and industrial applications.