Infineon

Company Update:
Infineon had a solid Q4 26 with FY 27 forecasts giving strength to its equity story.

Q4 FY 2026: Revenue of €4.706 billion, Segment Result Margin of 23.8 percent. Both almost in line with cosnensus.

Automotive, Green Industrial Power and Power and Sensor Systems grew while Connected Secure SYstems declined slightly.

Outlook for FY 2027: Revenue of approximately €20 billion is forecast with more than +20% YoY. (Consensus €19.9);

Revenue from power supplies for data centers is projected to reach close to €4 billion. (Earlier publication €2.5bn+);

Operational leverage kicking in with Segment Result Margin in the mid twenties percentage range. (Consensus at 25%);

Forecasts are slightly above consensus while the consensus expectations itself were quite high. Share price is nowhere near the target price of most institutions, so we expect a good positive reaction in the share price today. Our BUY recommendation is confirmed.

Expert Opinion:
FY27 guidance in sales (EUR20bn +22%) is encouraging and ahead of our forecast (19.4bn). This is especially important as the investment as is based on  medium-term operating leverage as factory utilization improves. As a reminder, Infineon is exposed to three structural drivers: software defined vehicles, electrification and silicon carbide and investments in Power Grid.


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