Infineon Technologies (IFX) Q4 2025 (Media) earnings summary

Executive summary

• FY 2025 revenue was EUR 14.66 billion, down 2% year-over-year, with a segment result margin of 17.5% and adjusted EPS of EUR 1.39.

• Q4 FY 2025 revenue increased 6% sequentially to EUR 3.94 billion, with a segment result of EUR 717 million and an 18.2% margin.

• Adjusted free cash flow was EUR 1.8 billion (12.3% of revenue); reported free cash flow was -EUR 1.05 billion due to the Marvell Automotive Ethernet acquisition.

• Business demonstrated resilience despite challenging macroeconomic and geopolitical conditions, with significant inventory corrections and cautious customer behavior.

• Segment result margin for the year was within the forecasted high teens range.

Financial highlights

• Gross margin for FY 2025 was 38.1%; adjusted gross margin was 41.4%.

• Operating profit for FY 2025 was EUR 1.515 billion, down from EUR 2.19 billion in FY 2024.

• Net profit for FY 2025 was EUR 1.015 billion; basic EPS from continuing operations was EUR 0.76.

• Dividend proposal for FY 2025 is EUR 0.35 per share, unchanged from prior year.

• Idle costs in the past fiscal year were just under EUR 1 billion, corresponding to a 6 percentage-point margin headwind.

Outlook and guidance

• FY 2026 revenue is expected to grow moderately despite adverse currency effects, with adjusted gross margin in the low-forties and segment result margin in the high teens.

• Q1 FY 2026 revenue expected around EUR 3.6 billion, a 9% sequential decline, with segment result margin in the mid to high teens.

• Adjusted free cash flow for FY 2026 forecast at EUR 1.6 billion; reported free cash flow at EUR 1.1 billion.

• Planned investments of EUR 2.2 billion in FY 2026, focusing on Smart Power Fab completion and manufacturing expansion.

• AI power revenue target for FY 2026 raised to EUR 1.5 billion.