Infineon expects revenue from power supplies for data centers to reach close to €4 billion in fiscal 2027, the year that began on 1 October, according to the results release it published on 10 November. Its total data center revenue was €2.2 billion in fiscal 2026, so the outlook implies growth of about 82%, by our arithmetic.
The group forecasts total revenue of approximately €20 billion, up from €16.353 billion. By our arithmetic, data centers would supply about €1.8 billion of the roughly €3.6 billion increase, or 49%, although they made up 13.5% of fiscal 2026 revenue.
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The key insight: Infineon expects revenue from power supplies for data centers to reach close to €4 billion in fiscal 2027, against €2.2 billion of data center revenue in fiscal 2026, according to its results release and investor presentation. The group forecasts revenue of approximately €20 billion, up from €16.353 billion.
Revenue for the fourth quarter, July to September, was €4,706 million, up 13% from the third quarter and 19% from a year earlier. Segment Result was €1,119 million, a margin of 23.8%. For the full year, revenue was €16.353 billion, up 12%, with Segment Result of €3.223 billion, a margin of 19.7%.
Free Cash Flow was €993 million for the year and Adjusted Free Cash Flow €1.925 billion. “Infineon closed the fiscal year 2026 with another record quarter and enters the new fiscal year with continued strong momentum,” said Jochen Hanebeck, CEO of Infineon.
In Power & Sensor Systems, quarterly revenue rose 25% to €1,796 million and the Segment Result Margin reached 30.8%, up from 24.9%. The release says “Demand for products for AI servers and data centers remained the main growth driver”.
Data centers were 13.5% of Infineon’s fiscal 2026 revenue but would supply about 49% of the growth in its fiscal 2027 outlook. Source: Infineon Q4 FY2026 release and investor presentation, 10 Nov 2026; shares and differences are our arithmetic on approximate outlook figures.
How the Data Center Number Moved
In its August investor presentation, Infineon forecast more than €1.6 billion of AI revenue for fiscal 2026, up from €1.5 billion, and said it “will materially upgrade our projection of €2.5bn for our 2027 fiscal year”. That €2.5 billion covered revenue from powering AI data centers.
The November presentation reports dedicated AI power revenue of €1.7 billion for fiscal 2026 and overall data center revenue of around €2.2 billion, including €0.5 billion from classic data centers. It says Infineon expects fiscal 2027 revenues “close to €4.0bn including traditional data center business”.
The two targets do not cover the same scope: the old €2.5 billion was AI revenue, while the new figure includes the traditional business. The deck also puts Infineon’s AI power content at $100 to $250 per kilowatt, up from a $175 average today, and shows an 800 V DC stage in its grid-to-core power chain.
The Spending Behind It
Infineon plans investments of €3.0 billion to €3.5 billion in fiscal 2027, depending on customer demand. Its quarterly investments in fiscal 2026 add up to €2,568 million, so the plan is 17% to 36% higher, by our arithmetic. The main areas named are the fourth manufacturing building in Dresden, silicon carbide capacity in Kulim and gallium nitride on 300-millimeter wafers in Villach.
The presentation describes capacity investments in smart power and logic as enabling further growth for “powering AI” and analog and mixed-signal products. The outlook sees an adjusted gross margin in the mid-to-high forties, a Segment Result Margin in the mid twenties, Free Cash Flow of about €1.8 billion and Adjusted Free Cash Flow of about €2.2 billion.
For the first quarter, Infineon guides revenue of approximately €4.6 billion and a Segment Result Margin of about 23%, at an assumed rate of $1.15 per euro. The board plans to propose a dividend of €0.38 per share, up €0.03.
As we read the outlook, data centers would supply about €1.8 billion of a roughly €3.6 billion rise in group revenue, or 49% by our arithmetic, from a business that was 13.5% of fiscal 2026 revenue.
As we read the two decks, the August €2.5 billion projection covered AI revenue, while the new figure includes traditional data center business, so the headline increase is not like-for-like.
Jochen Hanebeck, CEO of Infineon, 10 November 2026
“Infineon closed the fiscal year 2026 with another record quarter and enters the new fiscal year with continued strong momentum”
Three Implications
FOR CAPACITY Infineon plans investments of €3.0 billion to €3.5 billion in fiscal 2027, 17% to 36% above the €2,568 million it invested in fiscal 2026, by our arithmetic.
FOR MARGINS The outlook sees a Segment Result Margin in the mid twenties, after 19.7% in fiscal 2026 and 23.8% in the fourth quarter.
FOR POWER CONTENT The deck puts Infineon’s AI power content at $100 to $250 per kilowatt, from a $175 average today.
The framework argues: “Companies that solve the power equation will dominate the AI era; those that don’t will watch their chips sit idle.”
As we read it, Infineon sits on the supply side of that equation, selling the chips that convert grid power for servers. The framework predates these results and does not discuss Infineon.
What Is Not Established
The release does not split the close to €4 billion between AI and traditional data centers or name customers. Because the old €2.5 billion target covered AI revenue only, the size of the increase on a like-for-like basis is not stated. The results call and the share-price reaction were not reviewed for this piece.
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Infineon ended fiscal 2026 with €2.2 billion of data center revenue and expects close to €4 billion in fiscal 2027. On its own outlook of about €20 billion in group revenue, that would be about half of next year’s growth, by our arithmetic, while investments rise to €3.0 billion to €3.5 billion.
A note on sourcing. Results, outlook and data center figures are from Infineon’s results release and investor presentation of 10 November 2026; the earlier €2.5 billion target is from its 5 August 2026 presentation. Growth rates, shares of revenue and growth, and the fiscal 2026 investment total are our arithmetic. Outlook figures are approximate, as Infineon states them.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
