Infineon Technologies (IFX) Q2 2026 (Media) earnings summary

Executive summary

• Q2 FY2026 revenue reached EUR 3.812 billion, up 4% sequentially and 6% year-over-year, driven by strong demand in Automotive, Green Industrial Power, and Power & Sensor Systems segments.

• Segment earnings were EUR 653 million with a margin of 17.1%, down from 17.9% in the prior quarter but up from 16.7% a year ago.

• Order backlog increased by EUR 4 billion quarter-on-quarter to EUR 25 billion, up 25% year-over-year.

• Free cash flow improved to -EUR 63 million from -EUR 199 million in the previous quarter.

• Company is reorganizing from four to three divisions, effective July 1, to enhance agility and customer focus.

Financial highlights

• Q2 revenue: EUR 3.812 billion (+4% QoQ, +6% YoY, +14% currency-adjusted).

• Segment earnings: EUR 653 million; margin 17.1% (down from 17.9% QoQ, up from 16.7% YoY).

• Adjusted gross margin was 41.0%, down from 43.0% in Q1 FY26 but up from 40.9% in Q2 FY25.

• Free cash flow: -EUR 63 million (improved from -EUR 199 million QoQ).

• Gross cash position at quarter-end was EUR 2,153 million; net cash position was -EUR 5,721 million.

Outlook and guidance

• Q3 FY2026 revenue expected at ~EUR 4.1 billion (+8% QoQ); segment profit margin in high-single to high-teens percent range.

• FY2026 revenue forecast raised to over EUR 16 billion, with adjusted gross margin in the low- to mid-forties percent range and segment profit margin around 20%.

• Free cash flow forecast raised to EUR 1.25 billion (reported) and EUR 1.65 billion (adjusted).

• CapEx planned at EUR 7.2 billion, including EUR 500 million for accelerated AI data center investments.

• Investments for FY26 planned at EUR 2.7 billion, focused on production expansion and AI data center demand.