Infineon Technologies AG (DE:IFX)
XETRA:IFX
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Infineon Technologies AG
(XETRA:IFX)
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Rating:62Neutral
Price Target:
€57.00
▲(16.56% Upside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by stable-but-cyclical fundamentals: revenue growth has rebounded, but margins/returns and cash conversion are materially weaker than prior peaks and leverage has risen. Technicals are supportive (strong uptrend) but look overextended. Valuation is a key constraint given the high P/E and low yield, while the earnings call was cautiously constructive on AI-driven growth but flagged price, FX, capex and cash-flow pressures.
Positive Factors
Automotive franchise & margin resilience
Infineon’s automotive business shows durable strength: stable ~22% segment margins, recurring design wins (AURIX, 48V, steer‑by‑wire) and multi‑year vehicle qualification cycles. This creates predictable revenue, higher switching costs and long product lifecycles that support sustained margins and cash generation over 2–6 months and beyond.
Negative Factors
Rising leverage from debt buildup
Debt increasing to ~€8.2bn (from ~€5.1bn) and debt‑financed deals (e.g., €570m acquisition) raise leverage and interest exposure. Higher financial obligations reduce balance‑sheet flexibility to fund capex, cushion cyclical dips or pursue opportunistic M&A, increasing refinancing and credit risks if margins weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Automotive franchise & margin resilience
Infineon’s automotive business shows durable strength: stable ~22% segment margins, recurring design wins (AURIX, 48V, steer‑by‑wire) and multi‑year vehicle qualification cycles. This creates predictable revenue, higher switching costs and long product lifecycles that support sustained margins and cash generation over 2–6 months and beyond.
Read all positive factors
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€74.35B
Dividend Yield0.95%
Average Volume (3M)4.31M
Price to Earnings (P/E)48.0
Beta (1Y)1.86
Revenue Growth1.52%
EPS Growth8.35%
CountryDE
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.78
Shares Outstanding1,305,921,100
10 Day Avg. Volume4,128,939
30 Day Avg. Volume4,308,325
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
€50.31Price Target Upside2.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)1.65
Revenue Forecast (FY)€15.80B
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:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic strategic outlook: Infineon reported solid year-over-year revenue growth (stronger at constant FX), a growing order backlog, and clearly articulated, margin-enhancing AI growth initiatives (reaffirmed EUR 1.5bn AI target for FY2026 and EUR 2.5bn for FY2027) backed by accelerated investments. These positives are balanced against near-term cyclicality, segment-specific declines (notably in Green Industrial Power and Connected Secure Systems), deliberate inventory builds weighing on cash flow, currency headwinds, and a debt-financed acquisition. On balance, management emphasizes momentum and a path to profitable growth driven by AI, while acknowledging macro, FX and segment recovery risks.Positive Updates
Revenue and Year-over-Year Growth
Group revenue of EUR 3.662 billion in Q1; down ~7% sequentially but up 7% year-over-year. Adjusted for currency effects (weaker USD), revenue growth would have been nearly 14% YoY.
Negative Updates
Quarterly Revenue Decline and Seasonality
Reported revenue declined ~7% sequentially to EUR 3.662 billion, largely reflecting normal seasonality and subdued demand in automotive, industrial and consumer segments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Year-over-Year Growth
Group revenue of EUR 3.662 billion in Q1; down ~7% sequentially but up 7% year-over-year. Adjusted for currency effects (weaker USD), revenue growth would have been nearly 14% YoY.
Read all positive updates
Company Guidance
Infineon reaffirmed its full‑year guidance and gave detailed near‑term targets: Q2 sales are expected at ~EUR 3.8 billion (assumes $1.15/€) with a segment result margin in the mid‑ to high‑teens, and group price declines are forecast in the low‑ to mid‑single‑digit percent range; the company still expects a moderate revenue increase for FY2026 versus FY2025 and a (group) segment result margin in the high double‑digit percentage range. AI power‑supply sales are guided to ~EUR 1.5 billion in FY2026 (pure AI) plus ~EUR 0.5 billion for traditional data centers, rising to ~EUR 2.5 billion in FY2027; Infineon is accelerating AI capacity by bringing forward ~EUR 500 million of investments (total FY capex ~EUR 2.7 billion). Reported free cash flow is guided to ~EUR 1.0 billion (slightly below prior ~EUR 1.1 billion), adjusted FCF ~EUR 1.4 billion (down from ~EUR 1.6 billion previously), and management noted FX sensitivity of about €25 million revenue and €10 million result per $0.01 USD/€ move; the ams‑OSRAM sensor acquisition is not included in the guidance.Infineon Technologies AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.90B | 14.66B | 14.96B | 16.31B | 14.22B | 11.06B |
| Gross Profit | 5.87B | 5.90B | 6.18B | 7.61B | 6.36B | 4.22B |
| EBITDA | 3.88B | 3.95B | 4.41B | 5.82B | 4.73B | 2.82B |
| Net Income | 1.02B | 1.01B | 1.30B | 3.14B | 2.18B | 1.17B |
Balance Sheet | ||||||
| Total Assets | 30.74B | 30.47B | 28.64B | 28.44B | 26.91B | 23.33B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 2.10B | 2.20B | 3.59B | 3.72B | 3.92B |
| Total Debt | 8.23B | 7.22B | 5.17B | 5.11B | 6.05B | 6.92B |
| Total Liabilities | 13.90B | 13.42B | 11.42B | 11.39B | 11.97B | 11.93B |
| Stockholders Equity | 16.84B | 17.05B | 17.22B | 17.04B | 14.94B | 11.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.34B | 1.42B | 61.00M | 966.00M | 1.67B | 1.57B |
| Operating Cash Flow | 3.09B | 3.22B | 2.78B | 3.96B | 3.98B | 3.06B |
| Investing Cash Flow | -3.97B | -4.57B | -2.17B | -2.26B | -2.44B | -2.28B |
| Financing Cash Flow | 905.00M | 920.00M | -615.00M | -1.30B | -1.87B | -885.00M |
Infineon Technologies AG Technical Analysis
Positive
48.90
Price Trends
41.99
Positive
40.20
Positive
37.23
Positive
Market Momentum
1.43
Negative
72.39
Negative
96.90
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 above the 20-day moving average (MA) of 40.76, above the 50-day MA of 41.99, and above the 200-day MA of 37.23, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 96.90 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | €3.15B | 16.50 | 16.65% | 1.08% | 0.26% | -21.60% | |
71 Outperform | €1.91B | 15.56 | 7.38% | 1.97% | -6.26% | -22.28% | |
62 Neutral | €74.35B | 47.97 | 6.06% | 0.95% | 1.52% | 8.35% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | €1.38B | 9.97 | 20.45% | 2.64% | -4.60% | 55.61% | |
58 Neutral | €27.90M | 3.97 | 29.57% | ― | 19.76% | ― | |
48 Neutral | €2.39B | -6.79 | -3.62% | 0.43% | -7.60% | -425.45% |
* Technology Sector Average
DE:IFX
Infineon Technologies AG
57.13
27.23
91.04%
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183.60
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200.70%
DE:JEN
Jenoptik
33.38
15.61
87.86%
DE:KTN
Kontron AG
21.32
-0.17
-0.81%
DE:SCE
Schweizer Electronic
7.40
3.66
97.86%
DE:WAF
Siltronic
79.70
42.37
113.51%
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.