Date: November 12, 2025 | Source: Infineon Annual Press Conference (CAPA) Q4 FY2025 transcript via Investing.com + Infineon press release
Participants:Jochen Hanebeck (CEO), Dr. Sven Schneider (CFO), Elke Reichart (Chief Digital & Sustainability Officer), Andreas Urschitz (CMO), Alexander Groschke.
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Moderator: Welcome to the Infineon Technologies annual press conference. An der Konferenz nehmen alle Mitglieder des Vorstands teil, including all of the members of the Vorstand, Jochen Hanebeck, our CEO, Dr. Sven Schneider, our CFO, Elke Reichart, Andreas Urschitz and Alexander Groschke. Herr Hanebeck wird Ihnen zunächst einen Überblick über die aktuellen Entwicklungen geben. Jochen, over to you.
Jochen Hanebeck, CEO: Liebe Medienvertreterinnen und Medienvertreter, dear esteemed members of the press, welcome to Infineon's annual press conference. Infineon met expectations in the 2025 fiscal year, despite challenging macroeconomic and geopolitical conditions. The year was characterized by prolonged weakness in the majority of our target markets. End customers and distribution partners have significantly reduced their inventory levels. In view of geopolitical instability and the ongoing turbulence of tariffs, our customers are cautious about the future development of demand. In addition, unfavorable currency effects have slowed our revenue growth for several quarters now.
In the fourth quarter, group revenue increased to €3.943 billion — an increase of 6% compared to the previous quarter, despite a stronger headwind due to the weaker US dollar. As expected, the fourth quarter was the strongest in the 2025 fiscal year in terms of revenue. We increased the segment result to €717 million, and the segment result margin reached 18.2%, compared to 18.0% in the previous quarter.
For the 2025 fiscal year, revenue amounts to €14.662 billion, a decrease of 2% compared to the 2024 fiscal year. At constant currencies, revenue would have remained almost stable. The segment result margin reached 17.5% after 20.8% in the 2024 fiscal year — in the forecasted high-teens percentage range. We were able to partially offset price declines, negative currency effects and rising idle costs with positive margin effects from our structural improvement program, Step Up.
Free cash flow was -€1.051 billion; the adjusted free cash flow, which excludes investments in large front-end buildings and major acquisitions, amounted to €1.803 billion, approximately 12.3% of revenue.
Our dividend policy is aimed at paying out an unchanged dividend even in the event of stagnating or declining earnings. We will propose a stable dividend of €0.35 per share.
AI will continue to drive the structural need for semiconductors. We were able to almost triple our revenues from power supply solutions for AI data centers in the 2025 fiscal year, reaching over €700 million — around €100 million more than we had forecast, despite negative currency effects. We are raising our revenue forecast for the 2026 fiscal year from €1 billion to around €1.5 billion, which would mean more than doubling the revenues of the previous fiscal year. We expect the addressable market for Infineon to reach €8-12 billion by the end of the decade.
An excellent example of our collaboration is with NVIDIA in the development of a centralized 800-volt power supply architecture for future AI data centers. We are working closely together with many customers and partners to drive the development of software-defined vehicles around the world, building on our global market leadership in automotive semiconductors. The acquisition of the automotive Ethernet business of Marvell, completed last summer, was strategically important to this end.
Quantum computing is becoming the next potentially disruptive technology. At Infineon, we have key competencies for quantum computing, with strategic partners including Quantinuum and IonQ. Infineon is the first manufacturer worldwide to receive the Common Criteria certification for the implementation of a post-quantum cryptography algorithm on a security controller.
Looking to our expectations for 2026: we continue to operate in an environment in which short-term or last-minute ordering behavior limits the transparency of demand trends. Inventories in the supply chains have largely normalized. We anticipate that volume growth will return over the course of the fiscal year, and we will see a gradual upturn.
In the current first quarter, we expect revenues of around €3.6 billion, based on an exchange rate of $1.15 to the euro, with a segment result margin in the mid-to-high-teens percentage range. This would correspond to a revenue decline of around 9% compared to the previous quarter, above our typical seasonality.
In our base case for the 2026 fiscal year, we anticipate moderate revenue growth. The segment result margin is expected to come in at a high-teens percentage range. We are planning investments of around €2.2 billion for the 2026 fiscal year, a focus area being the completion of our Smart Power Fab in Dresden. We are ahead of schedule and expect to officially open the factory in summer 2026. Free cash flow adjusted for investments in front-end buildings is expected to be around €1.6 billion, and reported free cash flow around €1.1 billion.
Q (Joachim Hofer, Handelsblatt): What are the ramifications of the Nexperia case for Infineon?
A (Jochen Hanebeck): The Nexperia case demonstrates that semiconductors are not just-in-time products. In the supply chain you need inventories to decouple the automotive and semiconductor value chains. The overlap in products between Infineon and Nexperia is rather limited, and in some areas we were able to help. The geopolitical environment remains the big unknown in our business; Infineon is set up quite resiliently thanks to its manufacturing footprint, especially in Europe and Southeast Asia.
Q (Angela Meyer, Market SMC): When are we going to see a margin above 20% again?
A (Dr. Sven Schneider): Idle costs were just under €1 billion in the past fiscal year, roughly a 600-basis-point margin headwind. For this fiscal year we assume about €800 million, a 400-basis-point headwind. We are growing this year, strongly driven by AI — we're basically sold out in AI power supply with no applicable idle costs. Once markets play to our strengths and volume returns, we would easily be above the 20% margin that you mentioned.
Q (Christof Rührmair, DPA): How much have US tariffs cost you?
A (Management): The direct tariffs that relate to semiconductors are not really that material. There are some indirect impacts, which you can see reflected in the sales volume figures in the United States, and this does have a tangible impact on us.
Q (China revenue): What was the revenue share in China?
A (Andreas Urschitz): In the past fiscal year we were at a 38% share of revenue from Greater China, including mainland China and Taiwan; 29 percentage points were achieved in mainland China. We plan to maintain this range in 2026, though over the longer term the share may drop somewhat as we focus on AI and regions such as the United States, Korea and Japan.
IFX (Infineon) — Q4 FY2025 (November 12, 2025). In line vs forecast; EPS miss (€0.34 vs €0.44) but AI power story lifts stock +6.1% pre-market (close €35.97).