Infineon raises full-year guidance as AI demand drives Q2 growth
German semiconductor manufacturer Infineon Technologies has raised its full-year guidance for fiscal 2026 after reporting second-quarter revenue of EUR 3.81 billion, up 6% YoY. The upgrade is driven by surging demand for power supply solutions for AI data centres, with automotive order intake also showing signs of recovery.
Full-year revenue is now expected to grow significantly year-on-year, upgraded from a previous forecast of moderate growth, according to a press release from the company. The segment result margin target has been raised to around 20% from the previously guided high-teens range.
For Q2, the segment result reached EUR 653 million, representing a margin of 17.1%. For Q3, Infineon expects revenue of around EUR 4.1 billion with a segment result margin in the high-teens range.
AI-related revenue from data centre power solutions is expected to reach approximately EUR 1.5 billion in fiscal 2026, with further acceleration to around EUR 2.5 billion projected for fiscal 2027. To meet growing demand, Infineon plans to invest EUR 2.7 billion in fiscal 2026, with a focus on accelerating the ramp-up of its fourth module building in Dresden, which is set to open this summer.
“In the second half, we will grow more strongly than previously expected, with a broader upcycle across many end markets now in sight. The AI boom strengthens further, and our power supply solutions for AI data centers are in very high demand. The expansion of power infrastructure is gaining momentum and is becoming an increasingly important growth driver for our industrial business," said CEO Jochen Hanebeck, in a press release.
