Infineon Technologies (IFX) Q1 2026 (Media) earnings summary

Executive summary

• Q1 2026 revenue reached EUR 3,662 million, down 7% sequentially but up 7% year-over-year; adjusted for currency, growth was nearly 14% year-over-year, with a segment result margin at 17.9%.

• Strong demand for AI data center power supplies offset subdued market conditions elsewhere.

• Order backlog increased by EUR 1 billion to EUR 21 billion, continuing a six-month upward trend.

• Free cash flow improved to -EUR 199 million from -EUR 1.276 billion in the previous quarter, which was impacted by an acquisition.

• Announced acquisition of ams OSRAM’s non-optical analog mixed-signal sensor portfolio for EUR 570 million, expected to be immediately EPS accretive and generate EUR 230 million revenue in 2026.

Financial highlights

• Gross margin improved to 39.9% from 38.1% in the previous quarter; adjusted gross margin reached 43.0%.

• Segment profit was EUR 655 million, down 9% sequentially but up 14% year-over-year; margin at 17.9%.

• Profit for the period was EUR 256 million, up from EUR 231 million in Q4 FY 2025.

• Basic and diluted EPS from continuing operations rose to EUR 0.19; adjusted EPS (diluted) was EUR 0.35.

• Free cash flow was negative EUR 199 million, a significant improvement from negative EUR 1,276 million in the prior quarter.

Outlook and guidance

• Full-year guidance reaffirmed, expecting moderate revenue increase over FY25 and segment result margin in the high double-digit percent range.

• Q2 FY26 sales expected at approximately EUR 3.8 billion, with segment result margin in the mid- to high-teens.

• Price declines in the low- to mid-single-digit percent range anticipated, with differences across segments.

• Total investments planned at EUR 2.7 billion for FY26, mainly for AI data center power supply capacity.

• Reported free cash flow expected at EUR 1 billion, adjusted free cash flow at EUR 1.4 billion.