Infineon Has Slightly Better Start to Fiscal Year Than Expected

Infineon Technologies AG reported results for the first quarter of the 2025 fiscal year (pe-riod ended Dec. 31, 2024).

Infineon reported Q1 FY 2025 revenue of €3.424 billion, segment result €573 million, and segment result margin of 16.7%.

Based on an assumed exchange rate of US$1.05 to the euro (previously US$1.10), revenue for fiscal year 2025 is now expected to be flat to slightly up (previously: to decline slightly) compared with the prior year.

The adjusted gross margin should be around 40% and the segment result margin in the mid-to-high-teens percentage range. Investments of approximately €2.5 billion are planned. Free cash flow adjusted for investments in front-end buildings should be around €1.7 billion and reported free cash flow around €900 million.

“Infineon has held up well in a weak market environment, closing its first quarter slightly ahead of expectations,” said Jochen Hanebeck, CEO of Infineon. “Against a continued uncertain economic backdrop, our business trajectory in this fiscal year is following the pattern we expected: Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers. This is a prime example of our long-term growth drivers, digitalization and decarbonization.”