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Infineon Technologies AG
(XETRA:IFX)
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Rating:59Neutral
Price Target:
€57.00
▼(-7.30% Downside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid but not exceptional financial performance: strong revenue growth is offset by compressed margins and weaker/volatile free cash flow conversion. The latest earnings call is a meaningful positive due to upgraded revenue and margin guidance and a growing order backlog, but technicals are weak versus key moving averages and valuation is stretched (high P/E, low yield), limiting the overall score.
Positive Factors
Strong revenue momentum
A sustained +148% TTM revenue increase indicates durable demand and successful design‑wins across automotive, industrial and data‑center end markets. Strong top‑line momentum improves scale, funds R&D/capex and supports market positioning over the next several quarters.
Negative Factors
Margin compression vs prior cycle
Material margin downshift versus prior cycles shows reduced profitability power from product mix and pricing. Persistently lower gross/net margins limit retained earnings, reduce cushion against cost inflation, and constrain the firm's ability to self‑fund capex and higher‑value initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue momentum
A sustained +148% TTM revenue increase indicates durable demand and successful design‑wins across automotive, industrial and data‑center end markets. Strong top‑line momentum improves scale, funds R&D/capex and supports market positioning over the next several quarters.
Read all positive factors
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€80.26B
Dividend Yield0.57%
Average Volume (3M)4.60M
Price to Earnings (P/E)74.3
Beta (1Y)1.72
Revenue Growth3.31%
EPS Growth39.44%
CountryDE
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.83
Shares Outstanding1,305,921,100
10 Day Avg. Volume4,242,656
30 Day Avg. Volume4,598,057
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
€85.38Price Target Upside38.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1.76
Revenue Forecast (FY)€16.20B
Infineon Technologies AG Business Overview & Revenue Model
Company Description
Infineon Technologies AG, a global technology leader established in Munich, Germany, in 1999, specializes in the design, development, manufacture, and global distribution of semiconductors and advanced system solutions. The company's diverse portf...
How the Company Makes Money
Infineon makes money primarily by selling semiconductor devices and related solutions to original equipment manufacturers (OEMs) and their supply chains (including tier-1 suppliers and electronics manufacturing partners). Revenue is generated from...
Infineon Technologies AG Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
Overall the call conveys a positive momentum driven by strong AI data-center demand, a growing order backlog, upgraded full‑year revenue and margin guidance, and improving segment performance (notably PSS and GIP). These positives outweigh the challenges, which are concentrated in a relatively small portion of the automotive high‑voltage business, rising input costs, and some segment-specific weakness (CSS). Management has clear mitigation plans (realignment, capex for AI capacity, portfolio streamlining) and a constructive outlook.Positive Updates
Q2 Revenue Growth
Revenue of EUR 3.812 billion in Q2 FY2026, up 4% quarter-on-quarter and 6% year-on-year (≈+14% currency-adjusted vs prior year).
Negative Updates
Automotive High‑Voltage Business Profitability Issues
High‑voltage power semiconductors (inverters) face steep price competition and falling volumes, especially in China and some other regions; ATV margin impacted (ATV segment margin fell from 22.1% to 18.1% QoQ, a ~4 percentage point decline). High‑voltage products represent ~7% of automotive revenue; company is realigning production (Warstein back‑end measures), streamlining portfolio and reducing operating costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Q2 Revenue Growth
Revenue of EUR 3.812 billion in Q2 FY2026, up 4% quarter-on-quarter and 6% year-on-year (≈+14% currency-adjusted vs prior year).
Read all positive updates
Company Guidance
Infineon raised its outlook: it now expects Q3 revenue of about EUR 4.1 billion (≈+8% QoQ) with a segment profit margin in the high single‑digit percent range, and fiscal 2026 revenue of more than EUR 16 billion (vs. EUR 14.7 billion in 2025) with a segment profit margin targeted at around 20% (up from a prior high‑single‑digit margin outlook). The company adjusted its USD/EUR assumption from 1.15 to 1.17, plans capex of roughly EUR 7.2 billion (including ≈EUR 500 million of accelerated AI‑related investments), and now expects reported free cash flow of about EUR 1.25 billion (adjusted FCF ≈EUR 1.65 billion). Management also confirmed AI power‑supply revenue targets of EUR 1.5 billion for FY26 and EUR 2.5 billion for FY27, cited an order backlog of ≈EUR 25 billion (up EUR 4 billion QoQ, +25% YoY), expects silicon‑carbide growth in the low double digits, and values semiconductor content per installed kW at about $175 on average (range $100–$250).Infineon Technologies AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.12B | 14.66B | 14.96B | 16.31B | 14.22B | 11.06B |
| Gross Profit | 5.96B | 5.90B | 6.18B | 7.61B | 6.36B | 4.22B |
| EBITDA | 3.68B | 3.52B | 4.18B | 5.83B | 4.55B | 3.02B |
| Net Income | 1.09B | 1.01B | 1.30B | 3.14B | 2.18B | 1.17B |
Balance Sheet | ||||||
| Total Assets | 31.72B | 30.47B | 28.64B | 28.44B | 26.91B | 23.33B |
| Cash, Cash Equivalents and Short-Term Investments | 2.15B | 2.10B | 2.20B | 3.59B | 3.72B | 3.92B |
| Total Debt | 8.91B | 7.22B | 5.17B | 5.11B | 6.05B | 6.92B |
| Total Liabilities | 14.92B | 13.42B | 11.42B | 11.39B | 11.97B | 11.93B |
| Stockholders Equity | 16.80B | 17.05B | 17.22B | 17.04B | 14.94B | 11.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.15B | 1.42B | 61.00M | 966.00M | 1.67B | 1.57B |
| Operating Cash Flow | 2.89B | 3.22B | 2.78B | 3.96B | 3.98B | 3.06B |
| Investing Cash Flow | -4.48B | -4.57B | -2.17B | -2.26B | -2.44B | -2.28B |
| Financing Cash Flow | 1.69B | 920.00M | -615.00M | -1.30B | -1.87B | -885.00M |
Infineon Technologies AG Technical Analysis
Negative
61.49
Price Trends
74.48
Negative
62.08
Negative
50.24
Positive
Market Momentum
-2.91
Positive
38.95
Neutral
49.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IFX, the sentiment is Negative. The current price of 61.49 is below the 20-day moving average (MA) of 66.41, below the 50-day MA of 74.48, and above the 200-day MA of 50.24, indicating a neutral trend. The MACD of -2.91 indicates Positive momentum. The RSI at 38.95 is Neutral, neither overbought nor oversold. The STOCH value of 49.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | €1.45B | 10.26 | 18.90% | 2.62% | -7.50% | 42.45% | |
68 Neutral | €2.42B | 23.06 | 17.36% | 0.94% | 6.49% | -11.56% | |
62 Neutral | €2.13B | 27.01 | 8.03% | 1.02% | -5.40% | -8.25% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | €80.26B | 74.30 | 6.49% | 0.57% | 3.31% | 39.44% | |
52 Neutral | €20.14M | 3.28 | 31.00% | ― | 25.08% | ― | |
44 Neutral | €2.51B | -11.89 | -10.91% | 0.24% | -6.66% | -753.06% |
* Technology Sector Average
DE:IFX
Infineon Technologies AG
61.67
28.17
84.11%
DE:ELG
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146.00
58.82
67.46%
DE:JEN
Jenoptik
37.28
19.13
105.38%
DE:KTN
Kontron AG
22.36
-4.96
-18.16%
DE:SCE
Schweizer Electronic
5.34
2.46
85.42%
DE:WAF
Siltronic
76.10
39.60
108.49%
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.