Infineon Technologies (DE:IFX)
OTHER OTC:IFX
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Infineon Technologies AG
(OTC:IFX)
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Rating:64Neutral
Price Target:
€79.00
▲(61.55% Upside)
Action:Reiterated
Date:05/09/26
The score is anchored by solid-but-not-exceptional financial performance: strong revenue momentum, but compressed margins and weaker free-cash-flow conversion. Technicals support the trend (price well above major moving averages), though overbought readings add near-term risk. Valuation is a headwind given the high P/E and low yield. The latest earnings call improves the outlook meaningfully via raised revenue, margin, and free-cash-flow guidance, partially offset by automotive high-voltage pressure and execution risk on cash flow.
Positive Factors
Revenue Growth & Upgraded Guidance
Management upgraded FY26 revenue above €16B, indicating sustained end-market demand and improved multi-quarter visibility. Durable higher top-line guidance supports long-term capacity planning, multi-year customer contracts and justifies continued investment in fabs and product qualification programs.
Negative Factors
Margin Compression
Material downshift in net margins versus prior cycle reduces sustainable profitability and internal funding capacity. Lower margins constrain ability to absorb rising input costs and fund aggressive capex without pressuring returns, increasing execution sensitivity across business segments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Upgraded Guidance
Management upgraded FY26 revenue above €16B, indicating sustained end-market demand and improved multi-quarter visibility. Durable higher top-line guidance supports long-term capacity planning, multi-year customer contracts and justifies continued investment in fabs and product qualification programs.
Read all positive factors
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€95.55B
Dividend Yield0.95%
Average Volume (3M)5.66M
Price to Earnings (P/E)41.1
Beta (1Y)1.76
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. Volume5,991,085
30 Day Avg. Volume5,655,629
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
€67.92Price Target Upside38.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)1.74
Revenue Forecast (FY)€16.12B
Infineon Technologies AG Business Overview & Revenue Model
Company Description
Infineon 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 semicond...
How the Company Makes Money
Infineon makes money primarily by selling semiconductors and related solutions to original equipment manufacturers (OEMs) and their supply chains (including tier-1 suppliers and electronics manufacturing services). Its revenue model is predominant...
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 | 3.87B | 3.95B | 4.41B | 5.82B | 4.73B | 2.82B |
| 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
Positive
48.90
Price Trends
49.67
Positive
45.89
Positive
40.04
Positive
Market Momentum
5.69
Negative
75.53
Negative
91.13
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 48.9 is below the 20-day moving average (MA) of 61.45, below the 50-day MA of 49.67, and above the 200-day MA of 40.04, indicating a bullish trend. The MACD of 5.69 indicates Negative momentum. The RSI at 75.53 is Negative, neither overbought nor oversold. The STOCH value of 91.13 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | €3.23B | 23.65 | 17.36% | 1.08% | 6.49% | -11.56% | |
72 Outperform | €1.48B | 21.11 | 18.90% | 2.64% | -7.50% | 42.45% | |
66 Neutral | €2.54B | 24.10 | 7.38% | 1.97% | -5.40% | -8.25% | |
64 Neutral | €95.55B | 41.09 | 6.49% | 0.95% | 3.31% | 39.44% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | €27.30M | -1.66 | 31.00% | ― | 25.08% | ― | |
51 Neutral | €2.80B | -6.79 | -6.91% | 0.43% | -7.60% | -425.45% |
* Technology Sector Average
DE:IFX
Infineon Technologies AG
73.42
39.63
117.29%
DE:ELG
ELMOS Semiconductor
188.40
119.60
173.84%
DE:JEN
Jenoptik
44.46
25.80
138.25%
DE:KTN
Kontron AG
22.92
1.02
4.64%
DE:SCE
Schweizer Electronic
7.24
3.68
103.37%
DE:WAF
Siltronic
93.35
57.75
162.22%
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.