Earnings release
Page 1
PRESS RELEASE Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com FY 2025 concluded in line with expectations. Moderate revenue growth expected in FY 2026 despite adverse currency impact, AI power revenue target significantly increased – Q4 FY 2025: Revenue €3.943 billion, Segment Result €717 million, Segment Result Margin 18.2 percent – FY 2025: Revenue €14.662 billion, down 2 percent on the prior year; Segment Result €2.560 billion; Segment Result Margin 17.5 percent; adjusted earnings per share €1.39; negative Free Cash Flow of €1.051 billion as a result of the acquisition of Marvell’s Automotive Ethernet business; positive Adjusted Free Cash Flow of €1.803 billion – Outlook for Q1 FY 2026: Based on an assumed exchange rate of US$1.15 to the euro, revenue of around €3.6 billion expected. On this basis, Segment Result Margin forecast to be in the mid-to-high-teens percentage range – Outlook for FY 2026: Based on an assumed exchange rate of US$1.15 to the euro, moderate revenue growth is expected compared with the prior year despite an adverse currency impact. Adjusted gross margin expected to be in the low-forties percentage range and Segment Result Margin in the high-teens percentage range. Investments of approximately €2.2 billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around €1.6 billion while Free Cash Flow should reach around €1.1 billion Neubiberg, 12 November 2025 – Today, Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on 30 September 2025. "Infineon has met expectations in the 2025 fiscal year despite challenging macroeconomic and geopolitical conditions. Our results underline the resilience of our business model," says Jochen Hanebeck, CEO of Infineon. "In the 2026 fiscal year we are expecting moderate growth in a still mixed market environment. Growth momentum in the automotive, industrial and consumer markets remains modest. Many customers are proceeding cautiously and placing short-term orders. On the other hand, global investment in AI infrastructure is continuing to rise rapidly and we expect considerable growth in demand for our leading power supply solutions for AI data centers. We are significantly increasing our target and expect to generate revenue of around €1.5 billion in this area in the 2026 fiscal year. By the end of the decade, Infineon’s addressable market will reach €8 to €12 billion. Decisive success factors for us in this market are our innovative strength, development speed, manufacturing excellence and our broad customer base."
Page 2
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 2 - € in millions (unless otherwise stated) Q4 FY 2025 Q3 FY 2025 Change vs. previous quarter +/- in % Q4 FY 2024 Change vs. previous year quarter +/- in % Revenue 3,943 3,704 6 3,919 1 Gross margin (in %) 38.1% 40.9% 41.4% Adjusted gross margin1 (in %) 40.7% 43.0% 43.3% Segment Result 717 668 7 832 (14) Segment Result Margin (in %) 18.2% 18.0% 21.2% Profit (loss) from continuing operations 239 293 (18) 384 (38) Profit (loss) from discontinued operations, net of income taxes (8) 12 --- (468) 98 Profit (loss) for the period 231 305 (24) (84) +++ Basic earnings per share (in euro) from continuing operations2 0.18 0.22 (18) 0.29 (38) Diluted earnings per share (in euro) from continuing operations2 0.18 0.22 (18) 0.29 (38) Adjusted earnings per share (in euro) from continuing operations – diluted2,3 0.34 0.37 (8) 0.49 (31) 1 The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 12. 2 The calculation for earnings per share and adjusted earnings per share is based on unrounded figures. 3 The reconciliation of profit (loss) for the period to adjusted profit (loss) for the period and adjusted earnings per share is presented on page 11. Group performance in the fourth quarter of the 2025 fiscal year In the fourth quarter of the 2025 fiscal year, Group revenue rose to €3,943 million, up from €3,704 million in the prior quarter. All four segments, Automotive (ATV), Green Industrial Power (GIP), Power & Sensor Systems (PSS) and Connected Secure Systems (CSS) contributed to the 6 percent increase in revenue. Net of currency effects, the increase in revenue was 8.5 percent. The gross margin in the fourth quarter of the 2025 fiscal year was 38.1 percent, compared with 40.9 percent in the prior quarter. The adjusted gross margin was 40.7 percent, compared with 43.0 percent in the third quarter of the 2025 fiscal year. In addition to currency effects, this was mainly due to certain product groups for consumer applications in the PSS segment being sold temporarily at lower margins due to underutilized production capacity. The Segment Result increased by 7 percent to €717 million in the fourth quarter of the 2025 fiscal year, up from €668 million in the third quarter. The Segment Result Margin rose to 18.2 percent, compared with 18.0 percent in the previous quarter. The fourth-quarter Non-Segment Result was minus €263 million, compared with minus €244 million in the third quarter. The Non-Segment Result for the fourth quarter of the 2025 fiscal year comprised €99 million relating to cost of goods sold, €17 million relating to research and development expenses and €67 million relating to selling, general and administrative expenses. In addition, it included net other operating expenses of €80 million.
Page 3
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 3 - Operating profit for the fourth quarter of the 2025 fiscal year improved to €454 million, up from €424 million in the prior quarter. The financial result in the final quarter of the past fiscal year was a net financial loss of €64 million, compared with a net financial loss of €40 million in the third quarter. The tax expense in the fourth quarter of the 2025 fiscal year was €152 million, compared with €95 million in the preceding quarter. Contributing to the significant increase in the tax rate were valuation effects relating to deferred taxation. Profit from continuing operations in the fourth quarter of the past fiscal year amounted to €239 million, compared with €293 million in the third quarter. The result from discontinued operations in the fourth quarter was a loss of €8 million, compared with a profit of €12 million in the previous three-month period. The profit for the period in the fourth quarter was €231 million, compared with €305 million in the third quarter. Basic earnings per share from continuing operations and diluted earnings per share from continuing operations each stood at €0.18 at the end of the fourth quarter of the 2025 fiscal year, compared with €0.22 for both at the end of the third quarter. Adjusted earnings per share1 (diluted) in the fourth quarter of the past fiscal year stood at €0.34, compared with €0.37 in the prior quarter. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – increased slightly in the fourth quarter of the 2025 fiscal year to €451 million, up from €442 million in the preceding three-month period. Depreciation and amortization in the fourth quarter amounted to €484 million, compared with €463 million in the third quarter of the 2025 fiscal year. Cash Flow from operating activities from continuing operations improved significantly in the fourth quarter of the 2025 fiscal year to a positive figure of €1,380 million, up from a positive figure of €621 million in the third quarter. The receipt of subsidies contributed to this increase. As a result of Infineon’s acquisition in mid-August of Marvell’s Automotive Ethernet business for a sum equivalent to €2,180 million, Free Cash Flow2 declined in the fourth quarter of the 2025 fiscal year to a negative figure of €1,276 million, compared with a positive Free Cash Flow of €288 million in the prior quarter. The gross cash position at the end of the fourth quarter of the past fiscal year was €2,102 million, compared with €1,539 million at the end of the third quarter. Due to the acquisition of Marvell’s Automotive Ethernet business being financed primarily through 1 Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or as superior performance indicators, but rather as additional information to profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS. The detailed calculation of adjusted earnings per share is presented on page 11. 2 For definitions and the calculation of Free Cash Flow and of the gross and net cash positions, see page 15.
Page 4
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 4 - liability, financial debt increased to €6,829 million at the end of the September quarter, up from €4,984 million as of 30 June 2025. The net cash position was a negative amount of €4,727 million, compared with a negative amount of €3,445 million at the end of the prior quarter. Segment earnings for the fourth quarter of the 2025 fiscal year Revenue in the Automotive segment rose in the fourth quarter of the 2025 fiscal year to €1,921 million, up from €1,870 million in the prior quarter. The 3 percent increase was the result of higher revenue especially in the areas of smart power, microcontrollers and electromobility solutions, the latter benefting from anticipatory purchases being made prior to the expiry of subsidies in the United States and China. The Segment Result improved to €430 million from €371 million in the third quarter of the 2025 fiscal year. The Segment Result Margin rose from 19.8 percent in the third quarter to 22.4 percent in the fourth quarter. Contributory factors here included volume growth and an improved mix, as well as the impact of several minor positive one-off effects. In the fourth quarter of the 2025 fiscal year, revenue in the Green Industrial Power segment rose to €463 million. In the prior quarter, this segment generated revenue of €431 million. The 7 percent increase was due to higher demand, above all in the areas of power infrastructure (including renewable energy and grid infrastructure) and e-mobility (particularly high-speed trains). The Segment Result improved slightly in the fourth quarter to €69 million, compared with €61 million in the third quarter of the past fiscal year. The Segment Result Margin was 14.9 percent, up from 14.2 percent in the prior quarter. Revenue in the Power & Sensor Systems segment rose by 13 percent in the fourth quarter of the 2025 fiscal year to €1,189 million, compared with €1,053 million in the prior quarter. Main growth driver was the business relating to products for servers and AI data centers. Also contributing to the increase in revenue was growing demand for products such as silicon microphones for smartphones and accessories. The Segment Result decreased from €198 million in the third quarter to €179 million in the fourth quarter of the 2025 fiscal year, due to the adverse impact of currency effects and especially sales of certain product groups for consumer applications. These were sold temporarily at lower margins due to underutilized production capacity. The Segment Result Margin in the PSS segment was 15.1 percent, compared with 18.8 percent in the prior quarter. In the Connected Secure Systems segment, revenue improved in the fourth quarter of the 2025 fiscal year to €369 million from €349 million in the third quarter. The 6 percent increase was due to higher demand in the area of contactless payment cards, partly based on customer reservation agreements. The Segment Result rose slightly, from €39 million in the third quarter to €45 million in the fourth quarter of the 2025 fiscal year. The Segment Result Margin increased to 12.2 percent, compared with 11.2 percent in the prior quarter.
Page 5
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 5 - Proposed dividend for the 2025 fiscal year: €0.35 per share Our dividend policy aims to allow our shareholders adequately participate in Infineon’s economic development and at paying out at least an unchanged dividend even in the event of stagnating or declining earnings. Against this backdrop, we intend to propose to the Annual General Meeting to be held in February 2026 a dividend of €0.35 per share, as in the previous year. This proposal takes account of the decline seen in our business, while at the same time maintaining the financial headroom required for profitable growth in the years ahead. The number of shares issued remained unchanged at 1,305,921,137 as of 30 September 2025. This figure includes 3,781,390 shares owned by the Company that are not entitled to a dividend. Should the Annual General Meeting approve the planned proposal, the total amount to be distributed to shareholders is anticipated to be €456 million. Outlook for the first quarter of the 2026 fiscal year Based on an assumed exchange rate of US$1.15 to the euro, Infineon expects to generate revenue of around €3.6 million in the first quarter of the 2026 fiscal year. It is anticipated that revenue in the ATV and PSS segments will decline at a lower percentage rate, while the revenue decline in the GIP and CSS segments is expected to be more pronounced. The Segment Result Margin is expected to be in the mid-to-high-teens percentage range. Outlook for the 2026 fiscal year Based on an assumed exchange rate of US$1.15 to the euro, Infineon expects revenues in the 2026 fiscal year to grow moderately compared with the 2025 fiscal year. Currency effects should have an adverse impact on revenue growth. It is anticipated that the ATV segment will see a percentage growth rate that is lower than the Group average. In contrast, revenue in the PSS segment is expected to grow at a much faster rate than the Group average, driven by very dynamic demand for products for power supply to AI data centers. Compared with the prior year, a moderate increase in revenue is expected in the GIP segment and a slight increase in revenue in the CSS segment. The adjusted gross margin should be in the low-forties percentage range and the Segment Result Margin in the high-teens percentage range. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are planned to amount to around €2.2 billion for the 2026 fiscal year. Our focus will be on the completion of the fourth manufacturing module in Dresden (Germany) and on manufacturing investment alingend to meet the strongly growing customer demand for power supply to AI data centers in time. Depreciation and amortization should amount to around €2.0 billion in the 2026 fiscal year, of which approximately €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress and of Marvell’s Automotive
Page 6
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 6 - Ethernet business. Free Cash Flow adjusted for larger investments in frontend buildings is expected to be around €1.6 billion. Free Cash Flow is forecast to amount to around €1.1 billion. It is expected that Return on Capital Employed (RoCE) will reach a mid-single-digit percentage rate. Press conference and analyst telephone conference On 12 November 2025 the Management Board of Infineon will host a press conference with the media at 8:00 am (CET), 2:00 am (ET). It can be followed over the Internet in both English and German. In addition a telephone conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CET), 3:30 am (ET). During both conferences, the Infineon Management Board will present the Company’s results for the fourth quarter as well as the outlook for the first quarter and the 2026 fiscal year. The conferences will also be available live and as replay on Infineon’s website at https://www.infineon.com/about/investor/reports-presentations/financial-results The Q4 Investor Presentation is available (in English only) at: https://www.infineon.com/about/investor/reports-presentations/financial-results Infineon Financial Calendar (*preliminary)
Page 7
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 7 - ➢ 13 – 14 Nov 2025 Morgan Stanley European TMT Conference, Barcelona ➢ 17 Nov 2025 JP Morgan Global TMT Conference, Hong Kong ➢ 26 – 27 Nov 2025 We Power AI – Divisional Update Call with Peter Wawer, Head of GIP and Adam White, Head of PSS, London ➢ 1 – 2 Dec 2025 UBS Global TMT Conference, Scottsdale ➢ 4 Dec 2025 Bernstein Premium Review Conference, Paris ➢ 8 – 9 Jan 2026 Oddo BHF Forum, Lyon ➢ 4 Feb 2026* Earnings Release for the First Quarter of the 2026 Fiscal Year ➢ 19 Feb 2026 Annual General Meeting 2026, Munich ➢ 6 May 2026* Earnings Release for the Second Quarter of the 2026 Fiscal Year About Infineon Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 57,000 employees worldwide (end of September 2025) and generated revenue of about €14.7 billion in the 2025 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY). Further information is available at https://www.infineon.com/ Follow us: X - Facebook - LinkedIn
Page 8
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 8 - FINANCIAL INFORMATION According to IFRS – preliminary and unaudited The following financial data relates to the fourth quarter and the entire 2025 fiscal year ended 30 September 2025 and the corresponding prior quarter and prior year periods. Consolidated Statement of Profit or Loss € in millions Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Revenue 3,943 3,704 3,919 14,662 14,955 Cost of goods sold1 (2,439) (2,189) (2,298) (8,909) (8,710) Gross profit 1,504 1,515 1,621 5,753 6,245 Research and development expenses1 (565) (560) (522) (2,227) (2,161) Selling, general and administrative expenses (401) (410) (393) (1,582) (1,554) Other operating income 15 8 12 108 58 Other operating expenses (99) (129) (245) (537) (398) Operating profit 454 424 473 1,515 2,190 Financial income 17 18 28 81 119 Financial expenses (81) (58) (54) (231) (162) Share of profit (loss) of associates and joint ventures accounted for using the equity method 1 4 1 10 11 Profit (loss) from continuing operations before income taxes 391 388 448 1,375 2,158 Income taxes (152) (95) (64) (370) (378) Profit (loss) from continuing operations 239 293 384 1,005 1,780 Profit (loss) from discontinued operations, net of income taxes (8) 12 (468) 10 (479) Profit (loss) for the period 231 305 (84) 1,015 1,301 Attributable to: Shareholders and hybrid capital investors of Infineon Technologies AG 231 305 (84) 1,015 1,301 Earnings per share (in euro) attributable to shareholders of Infineon Technologies AG2 Weighted average shares outstanding (in million) – basic 1,302 1,302 1,299 1,301 1,301 Basic earnings per share (in euro) from continuing operations 0.18 0.22 0.29 0.76 1.35 Basic earnings per share (in euro) from discontinued operations (0.01) 0.01 (0.36) 0.01 (0.37) Basic earnings per share (in euro) 0.17 0.23 (0.07) 0.77 0.98 Weighted average shares outstanding (in million) – diluted 1,310 1,308 1,304 1,307 1,305 Diluted earnings per share (in euro) from continuing operations 0.18 0.22 0.29 0.76 1.34 Diluted earnings per share (in euro) from discontinued operations (0.01) 0.01 (0.36) - (0.37) Diluted earnings per share (in euro) 0.17 0.23 (0.07) 0.76 0.97 1 In order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the allocation of certain expenses. This led to a reclassification of expenses from cost of goods sold to research and development expenses. The previous year's figures have been adjusted accordingly. 2 The calculation of earnings per share is based on unrounded figures. For the consideration of the compensation of hybrid capital investors when determining earnings per share, see “Reconciliation to adjusted earnings and adjusted earnings per share” on page 11.
Page 9
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 9 - Revenues, Results and Margins of the Segments Segment Result is defined as operating profit excluding specific net impairments and impairment reversals, the impact on earnings of restructuring and closures, share-based payment, acquisition-related depreciation/amortization and other expense, impact on earnings of sales of businesses or interests in subsidiaries, and other income (expense). € in millions (unless otherwise stated) Q4 FY 2025 Q3 FY 2025 Change vs. previous quarter in % Q4 FY 2024 Change vs. previous year quarter in % Automotive1 Segment Revenue 1,921 1,870 3 1,969 (2) Segment Result 430 371 16 510 (16) Segment Result Margin (in %) 22.4% 19.8% 25.9% Green Industrial Power Segment Revenue 463 431 7 503 (8) Segment Result 69 61 13 111 (38) Segment Result Margin (in %) 14.9% 14.2% 22.1% Power & Sensor Systems1 Segment Revenue 1,189 1,053 13 1,041 14 Segment Result 179 198 (10) 146 23 Segment Result Margin (in %) 15.1% 18.8% 14.0% Connected Secure Systems Segment Revenue 369 349 6 406 (9) Segment Result 45 39 15 62 (27) Segment Result Margin (in %) 12.2% 11.2% 15.3% Other Operating Segments Segment Revenue 1 1 - - +++ Segment Result - (1) +++ - - Corporate and Eliminations Segment Revenue - - - - - Segment Result (6) - --- 3 --- Infineon total Segment Revenue 3,943 3,704 6 3,919 1 Segment Result 717 668 7 832 (14) Segment Result Margin (in %) 18.2% 18.0% 21.2% 1 The business line „Sense & Control“, which was previously allocated to the Automotive segment, was reclassified to the Power & Sensor Systems segment with effect from 1 January 2025. The comparative previous year period has been adjusted accordingly.
Page 10
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 10 - € in millions (unless otherwise stated) FY 2025 FY 2024 Change vs. previous year in % Automotive1 Segment Revenue 7,402 7,716 (4) Segment Result 1,529 2,021 (24) Segment Result Margin (in %) 20.7% 26.2% Green Industrial Power Segment Revenue 1,631 1,934 (16) Segment Result 201 418 (52) Segment Result Margin (in %) 12.3% 21.6% Power & Sensor Systems1 Segment Revenue 4,208 3,795 11 Segment Result 683 482 42 Segment Result Margin (in %) 16.2% 12.7% Connected Secure Systems Segment Revenue 1,418 1,506 (6) Segment Result 155 182 (15) Segment Result Margin (in %) 10.9% 12.1% Other Operating Segments Segment Revenue 3 4 (25) Segment Result (1) - --- Corporate and Eliminations Segment Revenue - - - Segment Result (7) 2 --- Infineon total Segment Revenue 14,662 14,955 (2) Segment Result 2,560 3,105 (18) Segment Result Margin (in %) 17.5% 20.8% 1 The business line „Sense & Control“, which was previously allocated to the Automotive segment, was reclassified to the Power & Sensor Systems segment with effect from 1 January 2025. The comparative previous year period has been adjusted accordingly.
Page 11
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 11 - Reconciliation of Segment Result to operating profit € in millions Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Segment Result: 717 668 832 2,560 3,105 Plus/minus: Specific impairment reversals (impairments) 5 (25) (3) (249) (103) Gains (losses) from restructuring and closures (84) (23) (214) (141) (237) Share-based payment (53) (48) (35) (188) (130) Acquisition-related depreciation/amortization and other expenses (130) (95) (96) (408) (411) Gains (losses) on sales of businesses, or interests in subsidiaries - (2) (5) 6 (5) Other income and expenses (1) (51) (6) (65) (29) Total Non Segment Result (263) (244) (359) (1,045) (915) Operating profit 454 424 473 1,515 2,190 Reconciliation to adjusted earnings and adjusted earnings per share – diluted Earnings per share in accordance with IFRS (International Financial Reporting Standards) is influenced by amounts relating to purchase price allocations for acquisitions (in particular Cypress) and by other exceptional items (in particular in conjunction with “Step Up”). To enable better comparability of operating performance over time, Infineon calculates adjusted earnings per share (diluted) as follows: € in millions (unless otherwise stated) Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Profit (loss) from continuing operations – diluted 239 293 384 1,005 1,780 Compensation of hybrid capital investors1 (4) (4) (7) (18) (29) Profit (loss) from continuing operations attributable to shareholders of Infineon Technologies AG – diluted 235 289 377 987 1,751 Plus/minus: Non Segment Result2 263 244 359 1,045 915 Acquisition-related expenses within financial result 6 3 - 9 - Tax effect on adjustments (52) (51) (95) (222) (226) Adjusted profit (loss) for the period from continuing operations attributable to shareholders of Infineon Technologies AG – diluted 452 485 641 1,819 2,440 Weighted-average number of shares outstanding (in millions) – diluted 1,310 1,308 1,304 1,307 1,305 Adjusted earnings per share (in euro) from continuing operations – diluted3 0.34 0.37 0.49 1.39 1.87 1 Including the cumulative tax effect. 2 The calculation of the Non Segment Result can be found in the table "Reconciliation of Segment Result to operating profit". 3 The calculation of the adjusted earnings per share is based on unrounded figures. Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicators, but rather as additional information to the profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS.
Page 12
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 12 - Reconciliation to adjusted cost of goods sold and adjusted gross margin The cost of goods sold and the gross margin in accordance with IFRS are influenced by amounts relating to purchase price allocations for acquisitions (in particular Cypress) as well as by other exceptional items. To enable better comparability of operating performance over time, Infineon calculates the adjusted gross margin as follows: € in millions (unless otherwise stated) Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Cost of goods sold1 2,439 2,189 2,298 8,909 8,710 Plus/minus: Gains (losses) from restructuring and closures - - (2) - (5) Share-based payment (8) (6) (5) (31) (20) Acquisition-related depreciation/amortization and other expenses (87) (64) (64) (267) (261) Other income and expenses (4) (6) (6) (18) (18) Adjusted cost of goods sold1 2,340 2,113 2,221 8,593 8,406 Adjusted gross margin (in %) 40.7% 43.0% 43.3% 41.4% 43.8% 1 In order to provide more meaningful information, the accounting policy was changed as of 1 October 2024 with regard to the allocation of certain expenses. This led to a reclassification of expenses from cost of goods sold to research and development expenses. The previous year's figures have been adjusted accordingly. Adjusted cost of goods sold and the adjusted gross margin should not be seen as a replacement or superior performance indicator, but rather as additional information to cost of goods sold and the gross margin determined in accordance with IFRS. Number of employees 30 Sep 25 30 Jun 25 30 Sep 24 Infineon 57,077 56,371 58,065 Thereof: Research and development 13,998 13,472 13,253
Page 13
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 13 - Consolidated Statement of Financial Position € in millions 30 Sep 2025 30 Jun 2025 30 Sep 2024 ASSETS Cash and cash equivalents 1,356 1,279 1,806 Financial investments 746 260 395 Trade receivables 2,249 2,052 2,250 Inventories 4,141 4,280 3,990 Current income tax receivables 73 123 101 Contract assets 106 120 105 Other current assets 1,107 1,521 1,146 Assets classified as held for sale 45 - - Total current assets 9,823 9,635 9,793 Property, plant and equipment 8,142 7,930 8,002 Goodwill 7,849 6,503 6,797 Other intangible assets 3,274 2,565 2,820 Right-of-use assets 402 404 374 Investments accounted for using the equity method 100 98 117 Non-current income tax receivables 20 1 1 Deferred tax assets 250 310 264 Other non-current assets 610 613 471 Total non-current assets 20,647 18,424 18,846 Total assets 30,470 28,059 28,639 LIABILITIES AND EQUITY Short-term financial debt and current portion of long-term financial debt 1,047 1,047 500 Trade payables 2,011 1,898 1,990 Current provisions 660 575 698 Current income tax payables 331 301 301 Current lease liabilities 82 78 73 Current contract liabilities 71 96 75 Other current liabilities 1,566 1,432 1,509 Liabilities classified as held for sale 16 - - Total current liabilities 5,784 5,427 5,146 Long-term financial debt 5,782 3,937 4,311 Pensions and similar commitments 212 249 303 Deferred tax liabilities 133 177 177 Other non-current provisions 111 143 196 Non-current lease liabilities 305 309 284 Non-current contract liabilities 128 135 152 Other non-current liabilities 964 969 851 Total non-current liabilities 7,635 5,919 6,274 Total liabilities 13,419 11,346 11,420 Equity: Ordinary share capital 2,612 2,612 2,612 Capital reserve 6,886 6,806 6,763 Retained earnings 7,576 7,323 6,978 Other reserves (505) (528) (150) Own shares (120) (96) (187) Hybrid capital 602 596 1,203 Total equity 17,051 16,713 17,219 Total liabilities and equity 30,470 28,059 28,639
Page 14
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 14 - Condensed Consolidated Statement of Cash Flows € in millions Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Profit (loss) for the period 231 305 (84) 1,015 1,301 Plus: profit (loss) from discontinued operations, net of income taxes 8 (12) 468 (10) 479 Adjustments to reconcile profit (loss) for the period to cash flows from operating activities: Depreciation and amortization 484 463 473 1,917 1,865 Other expenses and income 253 234 153 957 734 Change in assets, liabilities and equity 513 (224) 897 (178) (239) Interests received and paid (3) (58) 12 (98) (66) Income taxes received (paid) (106) (87) (69) (425) (533) Cash flows from operating activities from continuing operations 1,380 621 1,850 3,178 3,541 Cash flows from operating activities from discontinued operations 17 21 (757) 39 (761) Cash flows from operating activities 1,397 642 1,093 3,217 2,780 Proceeds from sales of (payments for the acquisition of) financial investments, net (483) 210 202 (345) 1,351 Payments for the aquisition of subsidiaries or other businesses, net of cash acquired (2,180) (7) - (2,188) (803) Payments for the acquisition of other intangible assets (77) (78) (82) (294) (287) Payments for the acquisition of property, plant and equipment (374) (364) (640) (1,800) (2,432) Other investing activities (25) 116 17 53 4 Cash flows from investing activities (3,139) (123) (503) (4,574) (2,167) Issuance of (repayment of) long-term financial debt and hybrid capital 1,855 - - 1,505 177 Issuance of (repayment of) short-term financial debt - (400) (500) - - Proceeds from hybrid capital (cash outflow to hybrid capital investors) - (22) - (36) (39) Dividend payments - - - (455) (456) Other financing activities (29) (21) (20) (94) (297) Cash flows from financing activities 1,826 (443) (520) 920 (615) Net change in cash and cash equivalents 84 76 70 (437) (2) Currency effects on cash and cash equivalents (1) (12) (8) (7) (12) Change in cash and cash equivalents classified as held for sale (6) - - (6) - Cash and cash equivalents at beginning of period 1,279 1,215 1,744 1,806 1,820 Cash and cash equivalents at end of period 1,356 1,279 1,806 1,356 1,806
Page 15
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 15 - Key financial figures Free Cash Flow and adjusted Free Cash Flow Infineon reports the Free Cash Flow figure, defined as cash flows from operating activities and cash flows from investing activities, both from continuing operations, after adjusting for cash flows from the acquisition and sale of financial investments. Free Cash Flow serves as an additional performance indicator since Infineon holds part of its liquidity in the form of financial investments. This does not mean that the Free Cash Flow calculated in this way is available to cover other disbursements, because dividends, debt-servicing obligations and other fixed disbursements have not been deducted. The adjusted Free Cash Flow is part of Infineon’s strategic targets and is defined as Free Cash Flow adjusted for cash outflows for investments in large frontend buildings, cash inflows for related investment subsidies and major M&A transactions (acquisitions and disposals) adjusted for cash acquired or disposed of. Both figures should not be seen as a replacement or as superior performance indicators, but rather as useful information in addition to the disclosure of the cash flow reported in the Consolidated Statement of Cash Flows, and as a supplementary disclosure to other liquidity performance indicators and other performance indicators determined in accordance with IFRS. Free Cash Flow and adjusted Free Cash Flow are derived as follows from the Consolidated Statement of Cash Flows: € in millions Q4 FY 2025 Q3 FY 2025 Q4 FY 2024 FY 2025 FY 2024 Cash flows from operating activities1 1,380 621 1,850 3,178 3,541 Cash flows from investing activities1 (3,139) (123) (503) (4,574) (2,167) Payments for the acquisition of (proceeds from sales of) financial investments, net 483 (210) (202) 345 (1,351) Free Cash Flow (1,276) 288 1,145 (1,051) 23 Plus: Cash outflows for investments in large front-end buildings after deduction of cash inflows for related investment subsidies 584 869 Cash outflows for major M&A transactions, adjusted for cash acquired or disposed of 2,270 798 Adjusted Free Cash Flow 1,803 1,690 Percentage of revenue 12.3% 11.3% 1 From continuing operations.
Page 16
Public / For the Business and Trade Press: INFXX202511.021e Andre Tauber (Headquarters) Agnes Toan (Americas) Lin Zhu (Greater China) Yasuyuki Kamiseki (Japan) +49 89 234 23888 +1 408 250 1814 +86 21 6101 9199 +81 3 4595 7079 andre.tauber@infineon.com agnes.toan@infineon.com lin.zhu@infineon.com yasuyuki.kamiseki@infineon.com Investor Relations: +49 89 234 26655 investor.relations@infineon.com - 16 - Gross Cash Position and Net Cash Position The following table shows the gross cash position and the net cash position. Since some liquid funds are held in the form of financial investments, which for IFRS purposes are not classified as cash and cash equivalents, Infineon reports on its gross and net cash positions in order to provide investors with a better understanding of its overall liquidity situation. The gross and net cash positions are determined as follows from the Consolidated Statement of Financial Position: € in millions 30 Sep 25 30 Jun 25 30 Sep 24 Cash and cash equivalents 1,356 1,279 1,806 Financial investments 746 260 395 Gross cash position 2,102 1,539 2,201 Minus: Short-term financial debt and current portion of long-term financial debt 1,047 1,047 500 Long-term financial debt 5,782 3,937 4,311 Gross financial debt 6,829 4,984 4,811 Net cash position (4,727) (3,445) (2,610) D I S C L A I M E R This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected. Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements. Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. All figures mentioned in this press release are preliminary and unaudited.