Infineon (IFX GY) Q1 2026 (EUR) Revenue 3.66bln (exp. 3.62bln), EPS 0.19 (exp. 0.23); Q2 Revenue Outlook 3.8bln (exp. 3.81bln)

• Adj. Gross Margin 43% (prev. 40.7% Y/Y).

• "revenue is still expected to rise moderately compared with the prior year".
• The adjusted gross margin should be in the low-forties percentage range and Segment Result Margin in the high-teens percentage range.
• Investments are now planned at around EUR 2.7bln (prev. EUR 2.2bln) to further accelerate the expansion of manufacturing capacity for power supplies for AI data centers.

• Revenue of around 2.5bln is expected in this area after around 1.5bln in the current fiscal year.
• Adjusted free cash flow should now amount to around EUR 1.4bln (prev.  EUR 1.6bln), and free cash flow is now expected to reach around EUR 1.0bln (prev. EUR 1.1bln)

• "Infineon has made a successful start to fiscal year 2026". 
• “The very dynamic demand for AI, against an otherwise subdued market backdrop, is providing strong tailwinds to Infineon. At present, the focus is on power supply solutions for AI data centers; in the coming years, the expansion of grid infrastructure will be added. To serve our customers in the best possible way, we are aligning our manufacturing capacity to meet further rising demand and are bringing forward our investments in this area.

Infineon reported Q1 revenues that slightly beat expectations, though EPS fell short of forecasts, indicating pressure on profitability despite strong revenue growth. The Q2 revenue outlook also missed estimates, but the CEO highlighted robust demand for AI-related power supply solutions as a key driver, which could support future growth. The increased investment plans suggest a proactive approach to capacity expansion amid dynamic market conditions, particularly in AI.