Infineon (IFX) Q1 FY2026 Earnings Call — February 4, 2026

Date: February 4, 2026 | Source: Infineon press release "Infineon makes a successful start to fiscal year 2026" + Seeking Alpha Q1 FY2026 earnings call

Participants:Jochen Hanebeck (CEO, Labor Director & Chairman of Management Board), Dr. Sven Schneider (CFO), Alexander Foltin (Head of Finance, Treasury & IR), Andreas Urschitz (CMO).

---

Operator: Good morning, everyone. Welcome to the conference call for analysts and investors for Infineon's 2026 Fiscal First Quarter Results. Today's call will be hosted by Alexander Foltin, Executive Vice President, Finance, Treasury and Investor Relations at Infineon Technologies. As a reminder, this call is being recorded.

Alexander Foltin, Head of IR: Thank you, Mathilde. Good morning, ladies and gentlemen. Thank you for joining us today for Infineon's fiscal first quarter 2026 results.

Jochen Hanebeck, CEO: Infineon has made a successful start to fiscal year 2026. Revenue in the first quarter was €3.662 billion, with a Segment Result of €655 million and a Segment Result Margin of 17.9 percent. The very dynamic demand for AI, against an otherwise subdued market backdrop, is providing strong tailwinds to Infineon. At present, the focus is on power supply solutions for AI data centers; in the coming years, the expansion of grid infrastructure will be added.

To serve our customers in the best possible way, we are aligning our manufacturing capacity to meet further rising demand and are bringing forward our investments in this area. A significant portion will go toward accelerating the ramp-up of our new Smart Power Fab in Dresden, which we will open this summer — at exactly the right time.

Dr. Sven Schneider, CFO: For the second quarter of fiscal 2026, based on an assumed EUR/USD exchange rate of 1.15, we expect revenue of around €3.8 billion and a Segment Result Margin in the mid-to-high-teens percentage range.

For the full fiscal year 2026, revenue is still expected to rise moderately compared with the prior year. The adjusted gross margin should be in the low-forties percentage range, and the Segment Result Margin in the high-teens percentage range. We are now planning investments of around €2.7 billion, up from €2.2 billion previously, to further accelerate the expansion of manufacturing capacity for power supplies for AI data centers. Adjusted free cash flow should now amount to around €1.4 billion, and free cash flow is now expected to reach around €1.0 billion.

For our power supply solutions for AI data centers, we continue to expect revenue of around €1.5 billion in fiscal year 2026, and we now expect around €2.5 billion in fiscal year 2027.

Questions & Answers

Q (Lee Simpson, Morgan Stanley): Can you give us more color on the AI power supply opportunity and the capacity reservation agreements?

A (Jochen Hanebeck): We are the clear leader in power supply solutions for AI data centers, covering the entire power conversion chain from the power grid to the AI processor. We are sold out in this area, and demand continues to exceed supply. Several leading customers have entered into, or are in negotiations on, multiyear capacity reservation agreements. We are bringing forward our investments to €2.7 billion, with the Dresden Smart Power Fab opening this summer.

Q (Sandeep Deshpande, JPMorgan): How are you thinking about the broader semiconductor market recovery and the auto/industrial segments?

A (Jochen Hanebeck): AI is providing strong tailwinds against an otherwise subdued market backdrop. Automotive remains challenged in the near term with inventory dynamics, and industrial is mixed, but the structural demand from AI, energy infrastructure and software-defined vehicles underpins our medium-term confidence.