Infineon Shares Gain On Higher Q4 Results, Positive Outlook

(RTTNews) - Shares of Infineon Technologies AG were gaining around 6 percent in the German trading after the semiconductor major on Tuesday reported significantly higher fourth-quarter profit and revenues. Further, the firm issued positive outlook for first quarter and fiscal 2027, driven by data centers, power infrastructure, and software-defined vehicles.

CEO Jochen Hanebeck said, "Supported by an ongoing cyclical recovery and strong demand in our structural growth areas, we expect a significant increase in revenue and profitability in fiscal year 2027. Our semiconductor solutions for data center power supplies, the expansion and modernization of energy infrastructure, electromobility, and software-defined vehicles will be key contributors. ... we are well positioned to capitalize on profitable growth opportunities over the long term in these areas and in emerging applications such as robotics and edge AI."

Looking ahead for the first quarter of fiscal year 2027, Infineon expects revenue of approximately 4.6 billion euros, nearly stable revenue compared with the previous quarter amid a significantly better-than-usual seasonality. In the first quarter last year, revenues were 3.662 billion euros.

Segment Result Margin for the first quarter is expected to be approximately 23 percent.

Further, for fiscal 2027, Infineon expects revenue to grow by more than 20 percent to approximately 20 billion euros, and a 5-percentage-point increase in profitability.

The adjusted gross margin is projected to be in the mid-to-high forties percentage range, and Segment Result Margin in the mid twenties percentage range.

In fiscal 2026, the company's revenue was 16.353 billion euros, with segment Result Margin of 19.7 percent.

Further, Infineon said it intends to propose an increase in the dividend of 0.03 euro to 0.38 euro per share at the Annual General Meeting in February 2027.

In the fourth quarter, profit surged to 532 million euros from 231 million euros last year. Earnings per share grew to 0.40 euro from 0.17 euro last year.

On a continuing operations basis, profit grew to 531 million euros from last year's 239 million euros. Earnings per share from continuing operations grew to 0.40 euro from 0.18 euro in the prior year.

Adjusted earnings from continuing operations rose to 790 million euros or 0.60 euro per share from last year's 452 million euros or 0.34 euro per share.

Segment result totaled 1.119 billion euros, up 56 percent year-over-year. Segment result margin improved to 23.8 percent from 18.2 percent a year ago.

The adjusted gross margin stood at 45.1 percent, compared with 40.7 percent in the prior year.

Revenue increased 19.4 percent to 4.706 billion euros from 3.943 billion euros last year.

Group revenue rose 13 percent sequentially. Revenue increased significantly in Automotive, Green Industrial Power, and Power & Sensor Systems. Revenue in Connected Secure Systems, however, declined.

On XETRA in Germany, Infineon shares were trading at 51.48 euros, up 5.87 percent.

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