Infineon: Q3 FY 2025 revenue as guided, Segment Result above forecast. Further growth expected in the current quarter despite ongoing tariff uncertainties and weaker US dollar

 

• Q3 FY 2025: Revenue €3.704 billion, Segment Result €668 million, Segment Result Margin 18.0 percent
• Outlook for Q4 FY 2025: Assuming an exchange rate of US$1.15 to the euro (previously US$1.125), revenue of around €3.9 billion expected. On this basis, the Segment Result Margin is forecast to be in the high-teens percentage range
• Outlook for FY 2025: Based on an assumed exchange rate for Q4 of US$1.15 to the euro (previously US$1.125), Infineon expects revenue for the full fiscal year to be around €14.6 billion, slightly down on the prior year. The adjusted gross margin should be at least 40 percent (previously around 40 percent) and the Segment Result Margin should now be in the high-teens percentage range (previously in the mid-teens percentage range). Investments will now total around €2.2 billion (previously €2.3 billion). The Free Cash Flow should now organically amount to around €1.0 billion (previously around €0.9 billion). Considering the upcoming completion of the acquisition of the Automotive Ethernet business from Marvell Technology Free Cash Flow should reach around negative €1.2 billion. The Adjusted Free Cash Flow (Free Cash Flow adjusted for investment in frontend buildings and large M&A transactions) should now be around €1.7 billion (previously €1.6 billion)

 

Neubiberg, 5 August 2025 – Today, Infineon Technologies AG is reporting results for the third quarter of the 2025 fiscal year (period ended 30 June 2025).

 

"In the third quarter, Infineon has again achieved solid results in a very volatile environment,” says Jochen Hanebeck, CEO of Infineon . "Inventory corrections in our target markets have progressed a lot. However, we and our customers are continuing to navigate our way through an uncertain macroeconomic and geopolitical situation. At the same time, we are taking advantage of opportunities in strategic growth areas: software-defined vehicles – strengthened by our upcoming acquisition of Marvell Technology ’s Automotive Ethernet business – power supply solutions for AI data centers, rapidly increasing investment in energy infrastructure, as well as, going forward, humanoid robots. In these areas, semiconductor demand is increasing in the long term. Infineon , with its portfolio encompassing power semiconductors, analog & sensors, as well as control & connectivity, is ideally positioned to play a role in shaping these markets."

 

Group performance in the third quarter of the 2025 fiscal year

Group revenue rose from €3,591 million in the second quarter of the 2025 fiscal year to €3,704 million in the third quarter. Despite the headwind caused by the noticeably weaker US dollar compared to the previous quarter, revenue increased by 3 percent. Had the US dollar exchange rate remained unchanged, revenue increase would even have amounted to 9 percent. Revenue rose significantly in the Green Industrial Power (GIP) and Power & Sensor Systems (PSS) segments and slightly in the Automotive (ATV) segment. Revenues fell slightly in the Connected Secure Systems (CSS) segment.

 

Euro in millions	Q3 FY25	Q2 FY25	+/- in %
Revenue	3,704	3,591	3
Gross margin (in %)	40.9%	38.7%
Adjusted gross margin1 (in %)	43.0%	40.9%
Segment Result	668	601	11
Segment Result Margin (in %)	18.0%	16.7%
Profit (loss) from continuing operations	293	230	27
Profit (loss) from discontinued operations, net of income taxes	12	2	+++
Profit (loss) for the period	305	232	31
in Euro
Basic earnings (loss) per share from continuing operations2	0.22	0.18	22
Diluted earnings (loss) per share from continuing operations2	0.22	0.17	29
Adjusted earnings (loss) per share diluted1, 2	0.37	0.34	9

¹ The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

² The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

 

The gross margin improved from 38.7 percent in the second quarter to 40.9 percent in the third quarter of the current fiscal year. The adjusted gross margin rose to 43.0 percent, compared with 40.9 percent in the second quarter of the 2025 fiscal year.

 

The Segment Result increased by 11 percent in the third quarter of the 2025 fiscal year to €668 million, up from €601 million in the second quarter. The Segment Result Margin improved to 18.0 percent from 16.7 percent in the prior quarter.

 

The Non-Segment Result for the third quarter of the current fiscal year amounted to minus €244 million, compared with minus €283 million in the second quarter. The third-quarter Non-Segment Result comprised €76 million relating to cost of goods sold, €18 million relating to research and development expenses and €50 million relating to selling, general and administrative expenses. In addition, it included net operating expenses of €100 million.

 

In the third quarter of the 2025 fiscal year, operating profit improved to €424 million, up from €318 million in the prior quarter.

 

The financial result in the third quarter of the current fiscal year was a net negative of €40 million, compared with a net negative of €28 million in the second quarter.

 

The tax expense in the third quarter of the 2025 fiscal year amounted to €95 million, compared with €63 million in the prior quarter.

 

Profit from continuing operations rose from €230 million in the second quarter to €293 million in the third quarter of the current fiscal year. The result from discontinued operations was €12 million, after €2 million in the prior quarter. Profit for the period improved in the third quarter to €305 million from €232 million in the second quarter.

 

Basic earnings per share from continuing operations improved in the third quarter of the 2025 fiscal year to €0.22, from €0.18 in the prior quarter. Diluted earnings per share also stood at €0.22, up from €0.17 in the second quarter. Adjusted earnings per share³ (diluted) improved in the third quarter of the current fiscal year to €0.37, compared with €0.34 in the second quarter.

 

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – decreased from €470 million in the second quarter of the 2025 fiscal year to €442 million in the third quarter. Depreciation and amortization in the third quarter of the current fiscal year amounted to €463 million, compared with €483 million in the second quarter.

 

Free Cash Flow increased from €174 million in the second quarter to €288 million in the third quarter of the 2025 fiscal year.

 

The gross cash position at the end of the third quarter of the current fiscal year amounted to €1,539 million, compared with €1,687 million at the end of the prior quarter. Financial debt at 30 June 2025 stood at €4,984 million, compared with €5,516 million at 31 March 2025. Factors contributing to the decrease in financial debt were the repayment of €400 million in current financial liabilities and a weaker US dollar. The net cash position improved from net financial debt of €3,829 million at the end of the second quarter to net financial debt of €3,445 million at the end of the third quarter of the 2025 fiscal year.

 

Outlook for the fourth quarter of the 2025 fiscal year

The following outlook for the fourth quarter and the full financial year 2025 does include effects from the upcoming completion of the acquisition of the Automotive Ethernet business of Marvell Technology , Inc, USA (" Marvell Technology ") only insofar as they relate to the expected Free Cash Flow, which takes into account the purchase price payment of USD 2.5 billion for the 2025 financial year. The effects on the other forecast key figures are immaterial.

 

In the fourth quarter of the 2025 fiscal year, based on an assumed exchange rate of US$1.15 to the euro, Infineon expects revenue to reach around €3.9 billion. It is anticipated that revenue will increase in all four segments compared with the preceding quarter. The GIP and PSS segments should see a percentage growth rate that is higher than the Group average, while in the ATV segment it is forecast to be lower. The increase in revenue in the CSS segment should be at around the Group average rate. Consequently, the Segment Result Margin is expected to be in the high-teens percentage range.

 

Outlook for the 2025 fiscal year

Based on the results for the first three quarters the outlook for the fourth quarter and an assumed exchange rate for Q4 of US$1.15 to the euro (previously US$1.125), Infineon expects to generate revenue of around €14.6 billion in the 2025 fiscal year, a slight decline when compared with the 2024 fiscal year.

 

The adjusted gross margin is expected to reach at least 40 percent (previously around 40 percent) and the Segment Result Margin should now be in the high-teens percentage range (previously in the mid-teens percentage range).

 

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are now planned to be around €2.2 billion for the 2025 fiscal year (previously around €2.3 billion). Depreciation and amortization should still amount to around €1.9 billion in the 2025 fiscal year, of which approximately €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress.

 

Free Cash Flow should now organically amount to around €1.0 billion (previously around €0.9 billion). Considering the upcoming completion of the acquisition of the Automotive Ethernet business from Marvell Technology Free Cash Flow should reach around negative €1.2 billion. The Adjusted Free Cash Flow (Free Cash Flow adjusted for investment in frontend buildings and large M&A transactions) should now be around €1.7 billion (previously €1.6 billion).

It is still expected that Return on Capital Employed (RoCE) will reach a mid-single-digit percentage rate.

 

³ Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or as superior performance indicator, but rather as additional information to profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS.

 

Infineon ’s segments’ performance in the third quarter of the 2025 fiscal year can be found in the quarterly information at www.infineon.com.

 

All figures in this quarterly information are preliminary and unaudited.

 

 

Telephone press conference and analyst telephone conference

On 5 August 2025 the Management Board of Infineon will host a telephone press conference with the media at 8:00 am (CEST), 2:00 am (EDT). It can be followed over the Internet in both English and German. In addition a telephone conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CEST), 3:30 am (EDT). During both calls, the Infineon Management Board will present the Company’s results for the third quarter as well as the outlook for the fourth quarter and the 2025 fiscal year. The conferences will also be available live and as replay on Infineon ’s website at www.infineon.com/investor

 

The Q3 Investor Presentation is available (in English only) at:

https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

 

 

Infineon Financial Calendar (*preliminary)

• 25 – 26 August 2025 Jefferies Global Semiconductor, IT Hardware & Communications Technology Conference, Chicago
• 28 August 2025  Deutsche Bank Technology Conference, Dana Point, California
• 3 September 2025  Deutsche Bank Access European TMT Conference, London
• 3 September 2025 Citi Global Technology Conference, New York
• 8 September 2025  Goldman Sachs Communacopia + Technology Conference, San Francisco
• 22 September 2025 Berenberg and Goldman Sachs German Corporate Conference, Munich
• 24 September 2025  BNP Paribas Exane ESG Conference, Paris
• 12 November 2025* Earnings Release for the Fourth Quarter and the
  2025 Fiscal Year

 

 

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 58,060 employees worldwide (end of September 2024) and generated revenue of about €15 billion in the 2024 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

Further information is available at https://www.infineon.com/

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D I S C L A I M E R

The condensed Consolidated Statement of Financial Position, the condensed Consolidated Statement of Profit or Loss and the condensed Consolidated Statement of Cash Flows have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The disclosures required by IAS 34 are not made.

The same accounting policies are applied as in the most recently published consolidated financial statements as of 30 September 2024. An exception to this principle is the application of new and revised standards and interpretations that have become effective during the year as well as a change in accounting policy as of 1 October 2024, relating to certain expenses that are now recognized in research and development costs instead of cost of sales.

The Quarterly Group Statement is prepared in accordance with the Frankfurt Stock Exchange’s stock exchange regulation 53 paragraph.

The Quarterly Group Statement contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this Quarterly Group Statement and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

All figures mentioned in this Quarterly Group Statement are unaudited.

 

Contact:
Andre Tauber, Media Relations, phone: +49 89 234 23888