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Infineon Technologies Ag (IFNNY)
OTHER OTC:IFNNY
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Infineon
(OTC:IFNNY)
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Rating:63Neutral
Price Target:
$46.00
▲(14.09% Upside)
Action:ReiteratedDate:02/06/26
The score is driven primarily by a financially sound but currently down-cycle profitability profile (compressed margins and uneven cash conversion), balanced by a constructive technical trend and a generally positive earnings-call outlook with reaffirmed guidance and improving backlog. The main drag is valuation, with a high P/E and low yield that increase downside sensitivity if margin pressure persists.
Positive Factors
Automotive franchise & design wins
Infineon's automotive franchise shows durable demand and high qualification barriers: stable sales (~EUR1.82bn) and AURIX design wins support multi-year production ramps. Automotive margins (~22.1%) and recurring OEM relationships underpin predictable revenue and stronger long-term cash visibility.
AI power-supply momentum and capacity build
Infineon is positioning for secular AI infrastructure growth by targeting substantial AI power-supply revenue and reporting demand greater than current supply. Front-loading capacity and converting existing fabs create durable revenue runway, where multi-year contracts and constrained supply support pricing and utilization over time.
Solid capitalization and asset base
Balance-sheet scale and meaningful equity provide financial flexibility to fund fabs, M&A and working-capital cycles. With sizeable assets (~EUR30.7bn) and manageable leverage for a capital-intensive semiconductor firm, Infineon can invest in strategic capacity while absorbing cyclical downturns without immediate liquidity stress.
Negative Factors
Marked margin compression
Profitability has materially weakened from peak cycle levels, reducing earnings power and return on capital. Lower margins signal pricing pressure, utilization gaps or mix shifts; sustained compression would limit internal funding for capex, acquisitions and dividends and raise sensitivity to demand shocks.
Uneven cash conversion and lower free cash flow
Free cash flow conversion is inconsistent due to heavy capex, working-capital build and acquisition impacts. Reduced and lumpy FCF lowers optionality for organic expansion or deleveraging, forcing reliance on external financing at times and constraining resilience through semiconductor cycle troughs.
Debt-funded acquisition raises leverage risk
Financing an acquisition fully with debt increases leverage at a time of compressed margins and uneven cash flow. Higher indebtedness reduces flexibility on future capex or buybacks, elevates refinancing and interest-rate exposure, and heightens downside risk if cyclical demand or margins deteriorate further.
Infineon (IFNNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.03B
Dividend Yield0.86%
Average Volume (3M)85.46K
Price to Earnings (P/E)47.8
Beta (1Y)1.47
Revenue Growth0.17%
EPS Growth-19.36%
CountryUS
Employees57,397
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,305,921,100
10 Day Avg. Volume0
30 Day Avg. Volume85,456
Financial Highlights & Ratios
PEG Ratio-1.99
Price to Book (P/B)2.54
Price to Sales (P/S)2.96
P/FCF Ratio38.60
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue3.84
Enterprise Value/Gross Profit9.75
Enterprise Value/Ebitda16.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.93
Revenue Forecast (FY)$18.51B
Infineon 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 makes money primarily by selling semiconductor products (integrated circuits and discrete devices) and related solutions to original equipment manufacturers (OEMs) and their supply chains (including tier-one automotive suppliers and industrial electronics manufacturers). Revenue is generated from high-volume chip sales across its major end markets: (1) Automotive, where it supplies semiconductors for powertrain electrification (traction inverters, onboard chargers, DC-DC converters), battery management systems, advanced driver assistance and safety functions (microcontrollers, sensors), and in-vehicle networking/security; (2) Industrial and infrastructure power, where it sells power devices and modules used in renewable energy systems (solar/wind inverters), EV charging infrastructure, data center and telecom power supplies, factory automation motor drives, and robotics; and (3) Connected and secure systems, where it sells microcontrollers, connectivity-related components, and hardware-based security (secure elements/TPMs and similar devices) used in IoT, consumer, and industrial endpoints. Its earnings are influenced by long design cycles and qualification requirements—especially in automotive and industrial markets—which can translate into multi-year production revenue once a chip is designed into a customer platform. Additional factors that can contribute to revenue and profitability include product mix (e.g., higher-value power modules or automotive-qualified components), long-term supply arrangements and backlog visibility common in automotive/industrial semiconductors, and manufacturing/outsourcing choices (a mix of internal fabrication and external foundry/assembly partners); specific partnership details beyond these general industry practices are null.
Infineon Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business units, indicating which segments are performing well and where the company might focus its strategic efforts for expansion.
Breaks down sales across various business units, indicating which segments are performing well and where the company might focus its strategic efforts for expansion.
Data provided by:
The Fly
The FlyInfineon Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a generally positive strategic outlook driven by strong AI-related demand, a material acquisition to expand sensor capabilities, improving order backlog and targeted investments to accelerate AI capacity. These positives are tempered by expected seasonality (QoQ revenue declines), weaker end-markets (GIP and IoT), margin pressure in some divisions, currency headwinds and a modest lowering of free cash flow guidance due to accelerated investments. On balance the company is positioning for profitable growth in AI and reaffirmed FY guidance, with short-term softness in certain segments and manageable financial trade-offs for growth.Q1-2026 Updates
Positive Updates
Strategic Acquisition of ams-OSRAM Sensor Portfolio
Announced acquisition of non-optical analog/mixed-signal sensor portfolio for EUR 570 million; expected to generate ~EUR 230 million revenue in calendar 2026, immediate EPS accretive, adds ~230 employees, includes multiyear supply agreement and future synergies; completion expected in Q2 (calendar).
Revenue Growth Year-over-Year and Q1 Results
Q1 fiscal 2026 revenue EUR 3.662 billion, down ~7% sequentially (seasonal) but up 7% YoY; adjusted for currency effects, YoY growth would be ~14% due to significant USD weakness.
Order Backlog and Improving Demand Signals
Order backlog increased by ~EUR 1 billion vs prior quarter to ~EUR 21 billion, marking ~6 months of continuous increases and improving short-term indicators (order intake and lead times).
Power & Sensor Systems — Strong AI Power Supply Momentum
PSS sales EUR 1.171 billion (-3% QoQ) with segment result EUR 204 million and margin rising to 17.4% (from 14.5% QoQ); reaffirmed AI-related sales target ~EUR 1.5 billion for FY26 (purely AI-related) and target ~EUR 2.5 billion for FY27, citing demand higher than supply.
Capital Investment Acceleration for AI Capacity
Bringing forward EUR 500 million of investment to FY26 to expand AI-related manufacturing capacity (total FY26 planned investments ~EUR 2.7 billion); converting existing IGBT module capacity to AI products and accelerating Dresden Smart Power Fab ramp (opening summer).
Automotive Business Resilient and Design Wins
Automotive sales EUR 1.821 billion (-5% QoQ due to seasonality) but up 4% YoY (constant FX +10%); segment earnings EUR 403 million with margin ~22.1% (stable); noted AURIX microcontroller sales growing faster than market and multiple design wins (e.g., Lenovo safety host, 48V systems, steer-by-wire).
Improved Free Cash Flow Dynamics vs Prior Quarter
Reported free cash flow in Q1 improved to minus EUR 199 million from minus EUR 1.276 billion in the prior quarter (prior quarter impacted by Marvell Ethernet acquisition); prior quarter organic free cash flow had been EUR 904 million in September quarter.
Negative Updates
Sequential Revenue and Segment Profit Pressures
Group revenue declined ~7% QoQ to EUR 3.662 billion; segment profit declined to EUR 655 million with segment profit margin 17.9% (slightly down vs 18.2% prior quarter).
Green Industrial Power (GIP) Sharp Decline
GIP sales EUR 349 million (December quarter seasonally weakest); comparable GIP sales down ~21% QoQ; segment earnings fell to EUR 31 million and margin dropped to 8.9% from 16.3% QoQ, reflecting difficult market environment for industrial applications.
Connected Secure Systems Weakness
CSS revenue EUR 321 million, down ~13% QoQ; segment earnings declined to EUR 23 million and margin fell to 7.2% from 12.2% QoQ; IoT/end-device market remains weak with low consumer confidence.
Currency Headwinds Reducing Reported Growth
U.S. dollar weakness materially reduced reported growth — adjusted YoY growth would be ~14% but reported was +7%; company guidance uses $1.15 EUR/USD and notes each $0.01 change impacts ~EUR 25 million revenue and ~EUR 10 million result per quarter.
Free Cash Flow and Adjusted Guidance Lowered
Reported full-year free cash flow expected around EUR 1.0 billion (down from prior EUR 1.1 billion); free cash flow adjusted for major investments/acquisitions expected ~EUR 1.4 billion (down from EUR 1.6 billion) due to accelerated AI investments.
Supply Chain Bottlenecks and Macroeconomic/Geopolitical Risks
Company cites ongoing capacity bottlenecks along multi-stage value chain for AI products, inventories built up intentionally raising working capital, and persistent geopolitical/macroeconomic uncertainties (including regional demand variability and tariff concerns) that limit visibility and recovery timing.
Acquisition Financing Risk
ams-OSRAM sensor deal is being financed entirely with debt (no equity), which increases leverage and will be embedded into normal refinancing measures; acquisition scale is modest (~EUR 230 million revenue) but fully debt-financed.
Company Guidance
Infineon reaffirmed its guidance: for Q2 FY26 it expects sales of approximately EUR 3.8 billion (assumes USD/EUR $1.15) and a segment result margin in the mid‑ to high‑teens; the company expects group price declines in the low‑ to mid‑single‑digit percentage range and a moderate increase in revenue for FY26 versus FY25 with a (group) segment result margin in the high double‑digit percentage range. Management is bringing forward EUR 500 million of AI‑related capacity investments (part of total FY capex of ~EUR 2.7 billion) to support AI power‑supply sales targeted at ~EUR 1.5 billion in FY26 (plus ~EUR 0.5 billion for traditional data‑center power supplies) and ~EUR 2.5 billion in FY27; reported free cash flow is now expected at ~EUR 1.0 billion (vs. ~EUR 1.1 billion prior) and free cash flow adjusted for major front‑end buildings and acquisitions at ~EUR 1.4 billion (vs. ~EUR 1.6 billion prior). Additional metrics noted: year‑end order backlog ≈ EUR 21 billion (up ~EUR 1 billion q/q) and FX sensitivity of ~EUR 25 million revenue and ~EUR 10 million result per quarter for each $0.01 change in the USD/EUR rate.Infineon Financial Statement Overview
Summary
Revenue is holding roughly flat, but profitability and returns have compressed materially from prior highs (TTM net margin ~6.9% vs ~19.2% in 2023). Balance sheet remains solid with manageable leverage (debt-to-equity ~0.49), while cash flow is positive but cash conversion is uneven (TTM FCF ~€1.27B; FCF ~43% of net income).Income Statement
TTM (Trailing-Twelve-Months) revenue is essentially flat versus the latest annual period (about €14.9B vs €14.7B), but profitability has stepped down materially from the cycle peak: net margin is ~6.9% in TTM versus ~19.2% in 2023 and ~8.7% in 2024. Gross margin (~39%) and operating margin (~11%) remain positive, but both are well below prior highs, pointing to weaker pricing/power and/or utilization. Overall, the income statement reflects a cyclical downturn: still profitable, but with clearly compressed margins and reduced earnings power.66
Positive
Balance Sheet
The balance sheet looks solid with meaningful equity (~€16.8B) against total debt (~€8.2B) in TTM (debt-to-equity ~0.49), though leverage has risen versus 2023–2024 (~0.30). Total assets have expanded to ~€30.7B, suggesting continued investment, but returns have cooled: return on equity is ~6.0% in TTM versus ~18.4% in 2023. Net: good capitalization and manageable leverage for a semiconductor name, but the trend is toward higher debt load and lower returns.72
Positive
Cash Flow
Cash generation is positive, with TTM operating cash flow of ~€3.1B and free cash flow of ~€1.27B, and free cash flow growth strong versus the latest annual period. However, cash conversion is weaker than ideal: free cash flow is only ~43% of net income in TTM (and was extremely low in 2024), indicating heavier capital spending and/or working-capital pressure. Operating cash flow relative to revenue is also modest (~21% in TTM), reinforcing that cash generation is good but not consistently high through the cycle.60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.87B | 14.66B | 14.96B | 16.31B | 14.22B | 11.06B |
| Gross Profit | 5.86B | 5.75B | 6.07B | 7.41B | 6.13B | 4.26B |
| EBITDA | 3.55B | 3.51B | 4.18B | 5.83B | 4.53B | 2.99B |
| Net Income | 1.02B | 1.01B | 1.30B | 3.14B | 2.18B | 1.17B |
Balance Sheet | ||||||
| Total Assets | 30.72B | 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 | 8.22B | 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 | 16.83B | 17.05B | 17.22B | 17.04B | 14.94B | 11.40B |
Cash Flow | ||||||
| Free Cash Flow | 1.27B | 1.12B | 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 | -3.86B | -4.31B | -2.17B | -2.26B | -2.44B | -2.28B |
| Financing Cash Flow | 782.74M | 867.21M | -615.00M | -1.30B | -1.87B | -885.00M |
Infineon Technical Analysis
Neutral
40.32
Price Trends
49.31
Negative
45.40
Negative
42.89
Positive
Market Momentum
-1.70
Positive
40.69
Neutral
16.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Neutral. The current price of 40.32 is below the 20-day moving average (MA) of 48.34, below the 50-day MA of 49.31, and below the 200-day MA of 42.89, indicating a neutral trend. The MACD of -1.70 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 16.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IFNNY.
Infineon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $78.83B | 25.45 | 19.38% | 0.28% | 44.95% | ― | |
64 Neutral | $23.35B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $58.03B | 47.84 | 6.06% | 0.86% | 0.17% | -19.36% | |
63 Neutral | $48.87B | 27.14 | 20.73% | 1.79% | -6.81% | -23.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $34.82B | 246.12 | -1.42% | 2.79% | -23.36% | -131.15% | |
56 Neutral | $27.92B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
IFNNY
Infineon
44.59
7.71
20.90%
MRVL
Marvell
90.16
17.64
24.33%
MCHP
Microchip
64.34
12.02
22.96%
NXPI
NXP Semiconductors
193.39
-14.86
-7.13%
ON
ON Semiconductor
59.89
14.21
31.11%
STM
STMicroelectronics
31.66
7.61
31.67%
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.