GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Chipmaker Infineon forecasts strong 2027 growth on data-centre demand - Finance news and analysis from Global Banking & Finance Review
Finance

Chipmaker Infineon forecasts strong 2027 growth on data-centre demand

Published by Global Banking & Finance Review

Posted on November 10, 2026

2 min read

· Last updated: November 10, 2026

Add as preferred source on Google

Infineon Projects Strong Revenue and Profit Growth by 2027 Driven by Data-Centre Demand

Infineon's Financial Outlook and Key Growth Drivers

2027 Revenue and Profitability Forecast

BERLIN, Nov 10 (Reuters) - Infineon on Tuesday forecast 2027 revenue growth of more than 20% and an increase of about 5 percentage points in profitability, driven by demand from data centres, power infrastructure and software-defined vehicles.

Recent Financial Performance

• The German chipmaker reported fourth-quarter revenue of €4.706 billion ($5.28 billion) and a segment result of €1.119 billion, yielding a segment margin of 23.8%. For the full fiscal year, revenue rose 12% to €16.353 billion, while adjusted free cash flow reached €1.925 billion

CEO Commentary and Market Momentum

• CEO Jochen Hanebeck said the company was entering the new fiscal year with "continued strong momentum", supported by an ongoing cyclical recovery and demand in structural growth markets

2027 Projections and Dividend Plans

• For 2027, Infineon forecasts revenue of around €20 billion, including close to €4 billion from data-centre power supplies

• It expects a segment margin in the mid-20% range and adjusted free cash flow of about €2.2 billion

• The company also plans to propose raising its dividend to €0.38 per share from €0.35

Additional Information

($1 = 0.8908 euros)

(Reporting by Hakan Ersen, Writing by Friederike Heine; Editing by Sherry Jacob-Phillips)

Key Takeaways

  • Infineon reported Q4 FY 2026 revenue of €4.706 billion and full‑year revenue up 12% to €16.353 billion, with adjusted free cash flow of €1.925 billion.
  • For FY 2027, the company projects around €20 billion in revenue—including nearly €4 billion from data‑centre power supplies—mid‑20% segment margin and €2.2 billion adjusted free cash flow.
  • The dividend is proposed to rise to €0.38 per share, up from €0.35, as management leans on structural growth markets like data centres and software‑defined vehicles.

References

Frequently Asked Questions

What is driving Infineon's expected growth?
The main growth drivers are strong demand from data centres, power infrastructure, and software-defined vehicles.
What profitability improvement does Infineon expect?
Infineon anticipates a segment margin increase of about 5 percentage points, reaching the mid-20% range in 2027.
How much did Infineon's revenue grow in the last fiscal year?
Infineon's full fiscal year revenue rose by 12% to €16.353 billion.
Is Infineon planning to raise its dividend?
Yes, Infineon plans to propose raising its dividend to €0.38 per share from €0.35.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category