Infineon’s Q3 revenues rose 3% sequentially to €3.7 billion, while remaining flat year on year. Profit climbed 31% sequentially to €305 million.
“In the third quarter, Infineon has again achieved solid results in a very volatile environment,” commented Jochen Hanebeck (pictured), Infineon CEO. “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.”
He continued, “At the same time, we are taking advantage of opportunities in strategic growth areas: software-defined vehicles – strengthened by our upcoming acquisition of Marvell’s Automotive Ethernet business – power supply solutions for AI data centres, rapidly increasing investment in energy infrastructure, as well as, going forward, humanoid robots.”
“In these areas, semiconductor demand is increasing in the long term,” added Hanebeck “Infineon, with its portfolio encompassing power semiconductors, analogue & sensors, as well as control & connectivity, is ideally positioned to play a role in shaping these markets.”
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.
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.
Assuming an exchange rate of US$1.15 to the euro (previously US$1.125), Infineon’s outlook for Q4 FY 2025 is for revenue of around €3.9 billion. On this basis, the Segment Result Margin is forecast to be in the high-teens percentage range.
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 per cent (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).
