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Chipmaker Infineon forecasts strong 2027 growth on data-centre demand

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In short

Infineon is targeting revenue of approximately €20 billion by 2027, driven by a projected €4 billion contribution from data-centre power supplies alone. The multi-year forecast builds on recent momentum, which saw full-year revenue climb 12 percent to €16.353 billion while generating €1.925 billion in adjusted free cash flow. Chief Executive Jochen Hanebeck attributes the projected mid-20 percent margins to both cyclical recovery and structural demand across key sectors. In response to these operational gains, management intends to lift shareholder payouts.

Key points

  • The company targets approximately €2.2 billion in adjusted free cash flow and a mid-20 pe…: The company targets approximately €2.2 billion in adjusted free cash flow and a mid-20 percent segment margin for 2027.
  • Management plans to raise the shareholder dividend to €0.38 per share, up from the previo…: Management plans to raise the shareholder dividend to €0.38 per share, up from the previous payout of €0.35.
  • Expanding demand for software-defined vehicles and power infrastructure is driving sustai…: Expanding demand for software-defined vehicles and power infrastructure is driving sustained multi-year business growth.

Sources checked by our analysis pipeline: 1

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

• 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 per cent. For the full fiscal year, revenue rose 12 per cent to €16.353 billion, while adjusted free cash flow reached €1.925 billion

• 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

• 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 per cent 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

($1 = 0.8908 euros)

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