Power management chip sales to AI data centers pushed third-quarter revenue to 4.172 billion euros, and the German chip maker lifted full-year revenue guidance while preparing more capacity in Dresden.
Infineon posted record fiscal third-quarter 2026 revenue of 4.172 billion euros for the period ended June 30, beating the 4.13 billion euro analyst consensus as strong demand for power management chips in AI data centers helped offset softer results in some other businesses. The German chip maker raised its full-year revenue target to about 16.3 billion euros from the 14.66 billion euros it reported for fiscal 2025, above the 16.202 billion euro market consensus, and forecast fourth-quarter revenue of about 4.7 billion euros with a segment result margin of around 23%. CEO Jochen Hanebeck said "power solutions for AI data centers remain in high demand and continue to be our most important growth driver," while automotive orders also rebounded as software-defined vehicles gained traction. Infineon said it has signed or is negotiating multi-year capacity reservation agreements worth billions of euros with AI customers, raised its adjusted free cash flow forecast to about 1.85 billion euros, and kept capital spending at 2.7 billion euros as it ramps its Dresden fab. After completing the acquisition of ams OSRAM's sensor product portfolio in July 2026, it lowered its reported free cash flow forecast to about 900 million euros.