Infineon Forecasts 20% Revenue Growth in 2027

According to German semiconductor manufacturer Infineon Technologies AG, the company expects its revenue to grow by more than 20% in fiscal 2027, supported by strong demand from data centers, power infrastructure, and software-defined vehicles (SDVs). Infineon also forecasts an improvement of approximately five percentage points in its profitability.

In its fourth-quarter financial results, Infineon reported revenue of €4.706 billion (approximately US$5.28 billion) and segment profit of €1.119 billion, representing a segment profit margin of 23.8%. For the full fiscal year, the company recorded a 12% increase in revenue to €16.353 billion, while adjusted free cash flow reached €1.925 billion.

Infineon CEO Jochen Hanebeck said the company entered the new fiscal year with continued strong momentum, driven by an ongoing cyclical recovery and sustained demand across structurally growing markets.

Looking ahead, Infineon expects fiscal 2027 revenue to reach approximately €20 billion, with its data center power business contributing nearly €4 billion. The company also projects a segment profit margin of around 25% and adjusted free cash flow of approximately €2.2 billion. In addition, Infineon plans to propose an increase in its dividend from €0.35 to €0.38 per share.