Infineon’s Revenue Growth in Q2 Confirms Expected Economic Recovery

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Infineon Technologies AG is reporting results for the second quarter of the 2025 fiscal year (period ended 31 March 2025).

"Infineon has performed well in the second quarter. Even at a more unfavorable exchange rate of $1.125 to the euro, we would be right on track and in line with our previous expectations for the fiscal year. Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes. We have therefore applied a haircut of 10 percent of expected revenue in the fourth quarter of the 2025 fiscal year. We are now anticipating a slight decline in revenue compared with the prior year," says Jochen Hanebeck, CEO of Infineon.

Highlights:

- Q2 FY 2025: Revenue €3.591 billion, Segment Result €601 million, Segment Result Margin 16.7 percent

- Outlook for Q3 FY 2025: Based on an assumed exchange rate of US$1.125 to the euro, revenue is expected to reach €3.7 billion. On this basis, the Segment Result Margin is forecast to be in the mid-teens percentage range

- Outlook for FY 2025: Based on an assumed exchange rate of US$1.125 to the euro (previously 1.05), Infineon expects now revenue to slightly decline compared with the prior year. This includes a guesstimate of potential effects related to tariff disputes. The adjusted gross margin should be around 40 percent and the Segment Result Margin now in the mid-teens percentage range. Investments are reduced to around €2.3 billion. Adjusted Free Cash Flow (Free Cash Flow adjusted for investment in frontend buildings) should now be around €1.6 billion and reported Free Cash Flow unchanged at around €900 million