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Infineon Technologies AG (DE:IFX)
XETRA:IFX
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Infineon Technologies AG
(XETRA:IFX)
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Rating:67Neutral
Price Target:
€39.00
▼(-3.85% Downside)
Infineon Technologies AG's overall stock score reflects strong financial performance with robust cash flow and revenue growth, but profitability pressures and high valuation pose risks. The technical analysis indicates short-term bullish momentum, while the earnings call presents a mixed outlook with both strategic advancements and challenges.
Positive Factors
Cash Generation
Strong cash generation enhances financial flexibility, enabling Infineon to invest in R&D and strategic acquisitions, supporting long-term growth.
Strategic Partnerships
Partnerships with industry leaders like NVIDIA position Infineon to capitalize on AI and data center growth, enhancing competitive advantage.
Industry Position
Pioneering in quantum computing solutions strengthens Infineon's leadership in semiconductor innovation, supporting future market dominance.
Negative Factors
Profitability Pressure
Declining profit margins indicate rising costs and competitive pressures, potentially impacting long-term profitability and shareholder returns.
Revenue Decline
Revenue decline due to currency effects and inventory corrections highlights vulnerabilities in market conditions, affecting growth prospects.
Geopolitical Uncertainties
Geopolitical risks and currency volatility pose challenges to stable revenue growth, potentially affecting Infineon's global operations.
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€54.83B
Dividend Yield0.95%
Average Volume (3M)3.41M
Price to Earnings (P/E)52.9
Beta (1Y)1.85
Revenue Growth-1.96%
EPS Growth-21.55%
CountryDE
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,305,921,100
10 Day Avg. Volume3,696,677
30 Day Avg. Volume3,410,288
Financial Highlights & Ratios
PEG Ratio-1.95
Price to Book (P/B)2.61
Price to Sales (P/S)3.03
P/FCF Ratio31.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€43.97Price Target Upside8.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Infineon Technologies AG Business Overview & Revenue Model
Company DescriptionInfineon Technologies AG designs, develops, manufactures, and markets semiconductors and related system solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; silicon carbide diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company's Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, SIC diodes, and IGBT modules and stacks for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers gas sensors, MEMS microphones, and pressure sensors chips; discrete low-voltage, mid-voltage, and high-voltage power MOSFETs; control ICs; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, Internet of Things, LED and conventional lighting systems, mobile devices, and power management applications. The company's Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, Internet of Things, mobile communication, payment system, ticketing, access control, and trusted computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Munich, Germany.
How the Company Makes MoneyInfineon generates revenue primarily through the sale of semiconductor products across its various sectors. The automotive segment, which includes products for electric vehicles and advanced driver assistance systems, is a significant revenue driver. Additionally, the industrial power control segment contributes to their earnings through solutions for energy efficiency and renewable energy. The company's revenue model is bolstered by long-term partnerships with leading automotive and industrial firms, as well as investments in research and development to maintain a competitive edge in technology. As demand for semiconductors continues to grow, particularly in the context of digital transformation and the shift towards sustainable energy solutions, Infineon benefits from increasing market opportunities and a diverse product portfolio.
Infineon Technologies AG Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there was significant growth in AI data center revenues and strategic advancements in partnerships and technologies, these were offset by challenges such as a decline in annual revenue, high idle costs, and geopolitical uncertainties. The outlook for 2026 remains cautious with moderate revenue growth expected despite these challenges.Q4-2025 Updates
Positive Updates
Fourth Quarter Revenue Increase
Group revenue increased to EUR 3.943 billion, a 6% increase compared to the previous quarter despite unfavorable currency effects.
AI Data Center Revenue Growth
Revenues from power supply solutions for AI data centers almost tripled in the 2025 fiscal year, reaching over EUR 700 million.
Strategic Acquisitions and Partnerships
Successful acquisition of Marvell's Automotive Ethernet business and collaboration with NVIDIA on AI data center power architecture.
Quantum Computing Developments
Infineon is advancing semiconductor solutions for industrial-grade quantum computing and post-quantum cryptography.
Positive Outlook for AI and Software-Defined Vehicles
Anticipated revenue growth from AI power solutions and software-defined vehicles, with significant investments in smart power fab in Dresden.
Negative Updates
Annual Revenue Decline
Fiscal year 2025 revenue amounted to EUR 14.662 billion, a 2% decrease compared to 2024 due to currency effects and inventory corrections.
Free Cash Flow Deficit
Free cash flow was minus EUR 1.051 billion, with adjusted free cash flow at plus EUR 1.803 billion.
Challenges in Automotive and Industrial Segments
Anticipated inventory reductions by automotive suppliers and manufacturers, with slow recovery in industrial applications.
Currency and Tariff Headwinds
Unfavorable currency developments and ongoing geopolitical and tariff uncertainties impacting revenue growth.
High Idle Costs
Idle costs impacted profitability, contributing to a margin headwind of about 600 basis points in fiscal year 2025.
Company Guidance
During the annual press conference of Infineon Technologies AG, CEO Jochen Hanebeck highlighted the company's performance and guidance amidst challenging conditions in fiscal year 2025. Despite a 2% revenue decline to EUR 14.662 billion due to unfavorable currency effects and inventory corrections, Infineon achieved a segment result margin of 17.5%, down from 20.8% in the previous year. The fourth quarter saw a revenue increase to EUR 3.943 billion, a 6% rise from the previous quarter, with a segment result margin of 18.2%. Negative free cash flow was reported at minus EUR 1.051 billion, while adjusted free cash flow amounted to EUR 1.803 billion. For fiscal year 2026, Infineon projects moderate revenue growth, expecting first-quarter revenues around EUR 3.6 billion and a segment result margin in the mid- to high-teen percentage range. The company anticipates dynamic growth in AI data center power solutions, forecasting revenues to reach EUR 1.5 billion, and plans investments of around EUR 2.2 billion, focusing on its smart power fab in Dresden.Infineon Technologies AG Financial Statement Overview
Summary
Infineon Technologies AG shows strong revenue growth and a solid balance sheet with manageable leverage. However, profitability margins have faced pressure, and return on equity has declined. The company demonstrates impressive cash flow performance, indicating robust cash generation capabilities.Income Statement
Infineon Technologies AG shows a robust revenue growth trajectory with a TTM revenue growth rate of 16.4%. However, the net profit margin has decreased to 4.78% in the TTM period from 8.70% in the previous year, indicating pressure on profitability. The gross profit margin remains healthy at 39.80%, though slightly lower than the previous year. EBIT and EBITDA margins have also declined, reflecting increased operational costs.Balance Sheet
The company's debt-to-equity ratio is stable at 0.32, indicating a manageable level of leverage. Return on equity has decreased to 4.04% in the TTM period, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains strong, highlighting a solid capital structure.Cash Flow
Infineon has demonstrated significant improvement in free cash flow, with a growth rate of 119.20% in the TTM period. The operating cash flow to net income ratio is healthy at 0.54, indicating strong cash generation relative to net income. The free cash flow to net income ratio has improved, reflecting better cash conversion.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.66B | 14.66B | 14.96B | 16.31B | 14.22B | 11.06B |
| Gross Profit | 5.75B | 5.75B | 6.07B | 7.41B | 6.13B | 4.26B |
| EBITDA | 3.50B | 3.43B | 4.18B | 5.81B | 4.51B | 2.99B |
| Net Income | 1.01B | 1.01B | 1.30B | 3.14B | 2.18B | 1.17B |
Balance Sheet | ||||||
| Total Assets | 30.47B | 30.47B | 28.64B | 28.44B | 26.91B | 23.33B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 2.10B | 2.20B | 3.59B | 3.72B | 3.92B |
| Total Debt | 7.22B | 7.22B | 5.17B | 5.11B | 6.05B | 6.92B |
| Total Liabilities | 13.42B | 13.42B | 11.42B | 11.39B | 11.97B | 11.93B |
| Stockholders Equity | 17.05B | 17.05B | 17.22B | 17.04B | 14.94B | 11.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 1.42B | 61.00M | 966.00M | 1.67B | 1.57B |
| Operating Cash Flow | 3.22B | 3.22B | 2.78B | 3.96B | 3.98B | 3.06B |
| Investing Cash Flow | -4.57B | -4.57B | -2.17B | -2.26B | -2.44B | -2.28B |
| Financing Cash Flow | 919.00M | 920.00M | -615.00M | -1.30B | -1.87B | -885.00M |
Infineon Technologies AG Technical Analysis
Positive
40.56
Price Trends
35.79
Positive
34.70
Positive
34.11
Positive
Market Momentum
1.43
Negative
67.05
Neutral
88.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IFX, the sentiment is Positive. The current price of 40.56 is above the 20-day moving average (MA) of 37.52, above the 50-day MA of 35.79, and above the 200-day MA of 34.11, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 67.05 is Neutral, neither overbought nor oversold. The STOCH value of 88.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:IFX.
Infineon Technologies AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | €2.34B | 24.38 | 10.99% | 0.88% | -3.93% | -20.93% | |
74 Outperform | €1.84B | 14.71 | 22.08% | 1.08% | -5.55% | 21.30% | |
73 Outperform | €895.37M | 15.89 | 19.94% | 0.78% | 34.77% | 52.20% | |
67 Neutral | €54.83B | 52.92 | 5.98% | 0.95% | -1.96% | -21.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | €1.62B | -57.35 | -1.40% | 0.43% | -5.17% | -128.32% |
* Technology Sector Average
DE:IFX
Infineon Technologies AG
40.56
8.64
27.06%
DE:AIXA
AIXTRON
19.62
4.83
32.61%
DE:ELG
ELMOS Semiconductor
106.40
29.36
38.11%
DE:SIS
First Sensor
55.20
-3.32
-5.67%
DE:WAF
Siltronic
51.80
6.63
14.68%
DE:SMHN
Suss Microtec
44.10
2.43
5.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.