Infineon forecasts strong 2027 growth on data-centre demand

Infineon forecasts strong 2027 growth on data-centre demand
Infineon eyes 2027 surge

Infineon is setting out a higher-growth target for 2027 as demand from data centres, power infrastructure and software-defined vehicles supports its medium-term outlook. The German chipmaker also points to improving profitability and cash generation, alongside plans to raise its dividend for shareholders.

Highlights

  • Infineon forecasts 2027 revenue of around €20 billion, driven by over €4 billion from data-centre power supplies and a segment margin in the mid-20% range.
  • Q4 revenue reached €4.706 billion with a segment result of €1.119 billion and segment margin at 23.8%; full year revenue rose 12% to €16.353 billion.
  • Infineon plans to raise its dividend to €0.38 per share from €0.35, reflecting confidence amid rising demand in data centres, power infrastructure, and software-defined vehicles.

2027 targets and annual performance

As reported by Reuters, Infineon on Tuesday forecasts revenue growth of more than 20% in 2027 and an increase of about 5 percentage points in profitability, with data-centre demand forming a key part of that expansion.

The company says it expects revenue of around €20 billion in 2027, including close to €4 billion from data-centre power supplies. It also expects a segment margin in the mid-20% range and adjusted free cash flow of about €2.2 billion.

For the fourth quarter, Infineon reports revenue of €4.706 billion and a segment result of €1.119 billion, yielding a segment margin of 23.8%. For the full fiscal year, revenue rises 12% to €16.353 billion, while adjusted free cash flow reaches €1.925 billion.

Demand trends and shareholder returns

Chief Executive Jochen Hanebeck says the company is entering the new fiscal year with continued strong momentum, supported by an ongoing cyclical recovery and demand in structural growth markets.

Those markets include data centres, power infrastructure and software-defined vehicles, areas that are increasingly important for chip demand and power management technologies. Infineon also plans to propose raising its dividend to €0.38 per share from €0.35, signalling confidence in its earnings and cash flow outlook.

Earlier, we reported that only 35% of planned U.S. data center projects were considered credible amid delays and funding strain.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.