Earnings release
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Infineon PRESS RELEASE Q3 FY 2026 concluded with record sales driven by strong Al business ; further significant increase in revenue and margin expected in Q4 FY 2026 - Q3 FY 2026 : Revenue € 4.172 billion , Segment Result € 797 million , Segment Result Margin 19.1 percent – Outlook for Q4 FY 2026 : Based on an assumed exchange rate of US $ 1.15 to the euro , revenue is expected to rise by a good 13 percent to around € 4.7 billion . On this basis , the Segment Result Margin is forecast to be around 23 percent – Outlook for FY 2026 : Revenue is now expected to be around € 16.3 billion ( previously : significantly rising revenue compared with the prior year ) . The adjusted gross margin should continue to be in the low - to - mid - forties percentage range and the Segment Result Margin should continue to reach around 20 percent . Adjusted Free Cash Flow is now expected to be around € 1.85 billion ( previously € 1.65 billion ) and Free Cash Flow is now expected to reach around € 0.9 billion ( previously € 1.25 billion ) , now including the acquisition of the sensor portfolio from ams OSRAM in July 2026 - Multi - year capacity reservation agreements with leading Al customers concluded or in negotiation , respectively , with a cumulative revenue volume of a high single- digit billion euro amount Neubiberg , 5 August 2026 - Infineon Technologies AG today announced results for the third quarter of the 2026 fiscal year , ended 30 June 2026 . “ Infineon concluded the third quarter of the 2026 fiscal year with record revenue and continues its growth trajectory , " said Jochen Hanebeck , CEO of Infineon . “ An increasing number of our target markets are showing a positive trend . Our power supply solutions for Al data centers remain in very high demand and continue to be our most important growth driver . In addition , rising investment worldwide in grid infrastructure is providing tailwinds . Automotive orders are also picking up noticeably . With its product portfolio and corresponding manufacturing capacities , Infineon is very well positioned in structural growth markets - and we are translating these opportunities into profitable growth . " Group performance in the third quarter of the 2026 fiscal year In the third quarter of the 2026 fiscal year , Group revenue increased by € 360 million to € 4.172 billion , - the highest quarterly revenue in Infineon's history to date – compared with € 3.812 billion in the prior quarter . The 9 percent increase was the result of improved demand in all segments . Particularly noteworthy contributions to the revenue increase Public / For the Business and Trade Press : infpr202608-125e Andre Tauber ( Headquarters ) +49 89 234 23888 Agnes Toan ( Americas ) Lin Zhu ( Greater China ) Yasuyuki Kamiseki ( Japan ) +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
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Public / For the Business and Trade Press: infpr202608-125e 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 - came from Power & Sensor Systems (PSS) with €182 million and Automotive (ATV) with €102 million. € in millions (unless otherwise stated) Q3 FY 2026 Q2 FY 2026 Change vs. previous quarter in % Q3 FY 2025 Change vs. previous year quarter in % Revenue 4,172 3,812 9 3,704 13 Gross margin (in %) 40.8% 38.7% 40.9% Adjusted gross margin1 (in %) 42.8% 41.0% 43.0% Segment Result 797 653 22 668 19 Segment Result Margin (in %) 19.1% 17.1% 18.0% Profit (loss) from continuing operations 423 301 41 293 44 Profit (loss) from discontinued operations, net of income taxes - - - 12 --- Profit (loss) for the period 423 301 41 305 39 Basic earnings per share (in euro) from continuing operations2 0.32 0.23 39 0.22 45 Diluted earnings per share (in euro) from continuing operations2 0.32 0.23 39 0.22 45 Adjusted earnings per share (in euro) from continuing operations – diluted2,3 0.44 0.34 29 0.37 19 1 The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 11. 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 10. Gross margin increased by 210 basis points to 40.8 percent in the third quarter of the 2026 fiscal year, up from 38.7 percent in the previous quarter, primarily due to the significant improvement in revenue. Adjusted gross margin rose to 42.8 percent, from 41.0 percent in the second quarter of the 2026 fiscal year. Segment Result increased to €797 million in the third quarter of the 2026 fiscal year, up from €653 million in the previous quarter. Segment Result Margin improved to 19.1 percent, from 17.1 percent in the previous quarter. Non-Segment Result stood at minus €203 million in the third quarter of the 2026 fiscal year, compared with minus €195 million in the previous quarter. Of the total, €84 million related to cost of goods sold, €44 million to research and development expenses, and €72 million to selling and general administrative expenses. In addition, it included net operating expenses of €3 million. Operating profit improved to €594 million in the third quarter of the 2026 fiscal year, up from €458 million in the previous quarter. The financial result was a net expense of €63 million in the third quarter of the 2026 fiscal year, compared with a net expense of €68 million in the previous quarter.
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Public / For the Business and Trade Press: infpr202608-125e 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 - Income taxes amounted to €112 million in the third quarter of the 2026 fiscal year, compared with €91 million in the second quarter. Profit from continuing operations and profit for the period both improved to €423 million in the third quarter of the 2026 fiscal year, up from €301 million in the second quarter in each case. Basic earnings per share from continuing operations and diluted earnings per share from continuing operations both rose to €0.32 in the third quarter of the 2026 fiscal year, from €0.23 previously. Adjusted earnings per share (diluted)1 improved to €0.44, from €0.34 in the previous quarter. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – amounted to €514 million in the third quarter of the 2026 fiscal year, compared with €541 million in the previous quarter. Depreciation and amortization stood at €466 million, compared with €452 million in the second quarter. Free Cash Flow2 improved significantly to plus €599 million in the third quarter of the 2026 fiscal year, from minus €63 million in the second quarter. At the end of the third quarter of the 2026 fiscal year, gross cash stood at €1,656 million, compared with €2,153 million at the end of the previous quarter. Due to the repayment of maturing financial liabilities, financial debt declined to €6,841 million at the end of the third quarter, from €7,874 million on 31 March 2026. Net cash improved to minus €5,185 million at the end of the June quarter, from minus €5,721 million at the end of March 2026. Segment earnings for the third quarter of the 2026 fiscal year3 Revenue in the Automotive segment increased to €1,932 million in the third quarter of the 2026 fiscal year, up from €1,830 million in the previous quarter. The 6 percent increase was driven by stronger demand for microcontrollers, Smart Power components, and Ethernet products, primarily in the area of software-defined vehicles. Segment Result rose 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 10. 2 For definitions and the calculation of Free Cash Flow and of the gross and net cash positions; see page 14. 3 The product line „Power Drivers & Signal ICs“, which was previously allocated to the Green Industrial Power segment, was reclassified to the Power & Sensor Systems segment with effect from 1 October 2025. The figures for the comparative periods have been adjusted accordingly.
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Public / For the Business and Trade Press: infpr202608-125e 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 - to €356 million, from €331 million in the second quarter of the 2026 fiscal year. Segment Result Margin improved to 18.4 percent, from 18.1 percent in the previous quarter. In the Green Industrial Power segment, revenue increased to €447 million in the third quarter of the 2026 fiscal year, up from €403 million in the previous quarter. The 11 percent increase was due to stronger demand across all areas, particularly in energy infrastructure and HVAC. Segment Result reached €44 million, compared with €47 million in the second quarter of the current fiscal year. Segment Result Margin was 9.8 percent, down from 11.7 percent in the previous quarter. The decline was attributable to temporary operational and inventory-related effects. Revenue in the Power & Sensor Systems segment increased to €1,442 million in the third quarter of the 2026 fiscal year, up from €1,260 million in the previous quarter. The 14 percent increase was mainly driven by further rising demand in the area of servers and data centers for artificial intelligence. Segment Result increased to €359 million, from €257 million in the second quarter. Segment Result Margin improved significantly to 24.9 percent, from 20.4 percent in the previous quarter. In the Connected Secure Systems segment, revenue increased to €350 million in the third quarter of the 2026 fiscal year, up from €319 million in the previous quarter. The 10 percent increase was driven by rising demand across all areas, particularly authentication and identification solutions. Segment Result increased to €34 million, from €18 million in the second quarter of the current fiscal year. Segment Result Margin improved to 9.7 percent, from 5.6 percent in the previous quarter. Outlook for the fourth 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 €4.7 billion in the fourth quarter of the 2026 fiscal year. Moderate growth is expected for the ATV segment. In the GIP, PSS, and CSS segments, the sequential increase in revenue is expected to be significant. Segment Result Margin is forecast to be around 23 percent. Outlook for the 2026 fiscal year Based on an assumed exchange rate for Q4 of US$1.15 to the euro Infineon now expects revenue of around €16.3 billion for the 2026 fiscal year (previously: to increase significantly compared to the prior year). This corresponds to an annual growth rate of around 11 percent. The ATV segment is expected to grow slower than the Group average.
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Public / For the Business and Trade Press: infpr202608-125e 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 - While positive momentum in software-defined vehicles continues, it is offset by subdued demand for high-voltage components in the field of electromobility. In contrast, revenue in the PSS segment is expected to grow significantly faster than the Group average, driven by very dynamic demand for power supply products for AI data centers. For the GIP segment, annual revenue growth is expected to be slightly below the Group average, while revenue in the CSS segment is expected to remain essentially unchanged. The adjusted gross margin should remain in the low-to-mid-forties percentage range and the Segment Result Margin should continue to be around 20 percent. Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – continue to be planned at around €2.7 billion for the 2026 fiscal year. Key focus areas include completing and preparing production in the fourth manufacturing module in Dresden (Germany), as well as further manufacturing investments aligned with strongly growing customer demand for power supply solutions for AI data centers. Depreciation and amortization is expected to total €2.0 billion in the 2026 fiscal year. Of that, around €400 million relates to depreciation and amortization resulting from purchase price allocations, mainly in connection with the acquisition of Cypress as well as Marvell’s Automotive Ethernet business. Adjusted Free Cash Flow is now expected to be around €1.85 billion (previously €1.65 billion) and Free Cash Flow – now including the purchase price payment for the acquisition of the sensor portfolio from ams OSRAM in July 2026 – is expected to reach around €0.9 billion (previously €1.25 billion). With regard to return on capital employed (RoCE), Infineon expects to achieve a mid-to- high (previously mid) single-digit percentage. Capacity reservation agreements with leading AI customers Several leading customers across the AI data center ecosystem have entered into multi- year capacity reservation agreements with us or are currently in negotiations for such. These agreements cover a cumulative revenue volume of a high single-digit billion euro amount and feature also certain prepayments. Completion of the acquisition of the sensor portfolio from ams OSRAM
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Public / For the Business and Trade Press: infpr202608-125e 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 - Infineon Technologies AG successfully completed the acquisition of the non-optical analog/mixed-signal sensor portfolio from ams OSRAM on 1 July 2026. The acquired business currently has an annualized revenue run rate of approximately €230 million and will be consolidated into Infineon as of 1 July 2026. For fiscal year 2026, a revenue contribution in the mid-double-digit million euro range is therefore expected in the fourth quarter. From the outset, the transaction will have an accretive effect on adjusted earnings per share. With the closing of the transaction, around 230 employees in research and development and management will transfer to Infineon. Infineon is thereby expanding its presence by three new sites in Valencia (Spain), Rapperswil (Switzerland), and Hyderabad (India). Press and analyst conference call On 5 August 2026 the Management Board of Infineon will host a press conference call with the media at 8:00 am (CEST), 2:00 am (EDT). It can be followed over the Internet in both English and German. In addition, a conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CEST), 3:30 am (EDT). During both conferences, the Infineon Management Board will present the Company’s results for the third quarter as well as the outlook for the fourth 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 Q3 Investor Presentation is available (in English only) at: https://www.infineon.com/about/investor/reports-presentations/financial-results Infineon Financial Calendar (*preliminary)
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Public / For the Business and Trade Press: infpr202608-125e 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 - 2 September 2026 dbAccess TMT Conference, London 8 September 2026 Communacopia and Technology Conference, San Francisco 10 September 2026 Citi Global Technology Conference, New York 16-17 September 2026 Exane ESG Conference, Paris 17 September 2026 JP Morgan Milan Access Day, Milan 21 September 2026 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim 10 November 2026* Earnings Release for the Fourth Quarter and the 2026 Fiscal Year 19-20 November 2026 Morgan Stanley TMT Conference, Barcelona 30 November 2026 UBS Tech Conference, Scottsdale 3 February 2027* Earnings Release for the First Quarter of the 2027 Fiscal Year 25 February 2027* Annual General Meeting 2027 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: Facebook - LinkedIn
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Public / For the Business and Trade Press: infpr202608-125e 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 – Unaudited The following financial data relates to the third quarter of the 2026 fiscal year ended 30 June 2026 and the corresponding prior quarter and prior year period. Condensed Consolidated Statement of Profit or Loss € in millions Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Revenue 4,172 3,812 3,704 Cost of goods sold (2,469) (2,335) (2,189) Gross profit 1,703 1,477 1,515 Research and development expenses (674) (612) (560) Selling, general and administrative expenses (433) (379) (410) Other operating income 3 15 8 Other operating expenses (5) (43) (129) Operating profit 594 458 424 Financial income 15 15 18 Financial expenses (78) (83) (58) Share of profit (loss) of associates and joint ventures accounted for using the equity method 4 2 4 Profit (loss) from continuing operations before income taxes 535 392 388 Income taxes (112) (91) (95) Profit (loss) from continuing operations 423 301 293 Profit (loss) from discontinued operations, net of income taxes - - 12 Profit (loss) for the period 423 301 305 Attributable to: Shareholders and hybrid capital investors of Infineon Technologies AG 423 301 305 Earnings per share (in euro) attributable to shareholders of Infineon Technologies AG1 Weighted average shares outstanding (in million) – basic 1,304 1,302 1,302 Basic earnings per share (in euro) from continuing operations 0.32 0.23 0.22 Basic earnings per share (in euro) from discontinued operations - - 0.01 Basic earnings per share (in euro) 0.32 0.23 0.23 Weighted average shares outstanding (in million) – diluted 1,316 1,314 1,308 Diluted earnings per share (in euro) from continuing operations 0.32 0.23 0.22 Diluted earnings per share (in euro) from discontinued operations - - 0.01 Diluted earnings per share (in euro) 0.32 0.23 0.23 1 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 10.
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Public / For the Business and Trade Press: infpr202608-125e 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 The 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, the impact on earnings of sales of businesses or interests in subsidiaries, and other income (expenses). € in millions (unless otherwise stated) Q3 FY 2026 Q2 FY 2026 Change vs. previous quarter in % Q3 FY 2025 Change vs. previous year quarter in % Automotive Segment Revenue 1,932 1,830 6 1,870 3 Segment Result 356 331 8 371 (4) Segment Result Margin (in %) 18.4% 18.1% 19.8% Green Industrial Power1 Segment Revenue 447 403 11 409 9 Segment Result 44 47 (6) 62 (29) Segment Result Margin (in %) 9.8% 11.7% 15.2% Power & Sensor Systems1 Segment Revenue 1,442 1,260 14 1,075 34 Segment Result 359 257 40 197 82 Segment Result Margin (in %) 24.9% 20.4% 18.3% Connected Secure Systems Segment Revenue 350 319 10 349 - Segment Result 34 18 89 39 (13) Segment Result Margin (in %) 9.7% 5.6% 11.2% Other Operating Segments Segment Revenue 1 - +++ 1 - Segment Result - - - (1) +++ Corporate and Eliminations Segment Revenue - - - - - Segment Result 4 - +++ - +++ Infineon total Segment Revenue 4,172 3,812 9 3,704 13 Segment Result 797 653 22 668 19 Segment Result Margin (in %) 19.1% 17.1% 18.0% 1 The product line „Power Drivers & Signal ICs“, which was previously allocated to the Green Industrial Power segment, was reclassified to the Power & Sensor Systems segment with effect from 1 October 2025. The figures for the comparative periods have been adjusted accordingly.
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Public / For the Business and Trade Press: infpr202608-125e 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 - Reconciliation of Segment Result to operating profit € in millions Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Segment Result: 797 653 668 Plus/minus: Certain reversal of impairments (impairments) 10 1 (25) Gains (losses) from restructuring and closures (9) (31) (23) Share-based payment (105) (68) (48) Acquisition-related depreciation/amortization and other expenses (90) (96) (95) Gains (losses) on sales of businesses, or interests in subsidiaries (2) 8 (2) Other income and expenses (7) (9) (51) Total Non Segment Result (203) (195) (244) Operating profit 594 458 424 Reconciliation to adjusted earnings and adjusted earnings per share – diluted Earnings per share in accordance with IFRS® Accounting Standards (International Financial Reporting Standards) are influenced by, among other things, effects from the purchase price allocation for acquisitions (in particular the acquisition of Cypress and Marvell's Automotive Ethernet business), expenses for share-based compensation, and other exceptional items (e.g., from restructuring measures). To improve the comparability of operating performance over time and against competitors, Infineon calculates adjusted earnings per share (diluted) as follows: € in millions (unless otherwise stated) Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Profit (loss) from continuing operations – diluted 423 301 293 Compensation of hybrid capital investors1 (4) (4) (4) Profit (loss) from continuing operations attributable to shareholders of Infineon Technologies AG – diluted 419 297 289 Plus/minus: Non Segment Result2 203 195 244 Acquisition-related expenses within financial result - - 3 Tax effect on adjustments (46) (43) (51) Adjusted profit (loss) for the period from continuing operations attributable to shareholders of Infineon Technologies AG – diluted 576 449 485 Weighted-average number of shares outstanding (in millions) – diluted 1,316 1,314 1,308 Adjusted earnings per share (in euro) from continuing operations – diluted3 0.44 0.34 0.37 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) are not substitutes for, or superior to IFRS-based profit (loss) for the period or earnings per share (diluted) but should be regarded solely as supplementary information.
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Public / For the Business and Trade Press: infpr202608-125e 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 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 effects from the purchase price allocation for acquisitions (in particular the acquisition of Cypress and Marvell's Automotive Ethernet business), by expenses for share-based compensation and by other exceptional items. To improve the comparability of operating performance over time and against competitors, Infineon calculates the adjusted gross margin as follows: € in millions (unless otherwise stated) Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Cost of goods sold 2,469 2,335 2,189 Plus/minus: Share-based payment (18) (12) (6) Acquisition-related depreciation/amortization and other expenses (62) (69) (64) Other income and expenses (4) (4) (6) Adjusted cost of goods sold 2,385 2,250 2,113 Adjusted gross margin (in %) 42.8% 41.0% 43.0% 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 Jun 26 31 Mar 26 30 Jun 25 Infineon 56,992 56,500 56,371 Thereof: Research and development 14,507 14,385 13,472
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Public / For the Business and Trade Press: infpr202608-125e 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 - Condensed Consolidated Statement of Financial Position € in millions 30 Jun 26 31 Mar 26 30 Sep 25 ASSETS Cash and cash equivalents 1,068 1,300 1,356 Financial investments 588 853 746 Trade receivables 2,527 2,285 2,249 Inventories 4,531 4,540 4,141 Current income tax receivables 85 75 73 Contract assets 138 125 106 Other current assets 1,352 1,345 1,107 Assets classified as held for sale - - 45 Total current assets 10,289 10,523 9,823 Property, plant and equipment 8,599 8,461 8,142 Goodwill 8,083 8,012 7,849 Other intangible assets 3,195 3,223 3,274 Right-of-use assets 416 437 402 Investments accounted for using the equity method 108 111 100 Non-current income tax receivables 23 20 20 Deferred tax assets 272 256 250 Other non-current assets 677 673 610 Total non-current assets 21,373 21,193 20,647 Total assets 31,662 31,716 30,470 LIABILITIES AND EQUITY Short-term financial debt and current portion of long-term financial debt 807 1,814 1,047 Trade payables 2,127 2,068 2,011 Current provisions 620 559 660 Current income tax payables 327 323 331 Current lease liabilities 72 77 82 Current contract liabilities 71 56 71 Other current liabilities 1,930 1,719 1,566 Liabilities classified as held for sale - - 16 Total current liabilities 5,954 6,616 5,784 Long-term financial debt 6,034 6,060 5,782 Pensions and similar commitments 166 137 212 Deferred tax liabilities 172 157 133 Other non-current provisions 114 112 111 Non-current lease liabilities 328 343 305 Non-current contract liabilities 103 114 128 Other non-current liabilities 771 769 964 Total non-current liabilities 7,688 7,692 7,635 Total liabilities 13,642 14,308 13,419 Equity: Ordinary share capital 2,612 2,612 2,612 Capital reserve 6,948 7,000 6,886 Retained earnings 8,144 7,724 7,576 Other reserves (193) (295) (505) Own shares / obligation to acquire own shares (87) (246) (120) Hybrid capital 596 613 602 Total equity 18,020 17,408 17,051 Total liabilities and equity 31,662 31,716 30,470
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Public / For the Business and Trade Press: infpr202608-125e 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 - Condensed Consolidated Statement of Cash Flows € in millions Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Profit (loss) for the period 423 301 305 Plus: profit (loss) from discontinued operations, net of income taxes - - (12) Adjustments to reconcile to cash flows from operating activities: Depreciation and amortization 466 452 463 Other expenses and income 281 214 234 Change in assets, liabilities and equity 132 (359) (224) Interest received and paid (68) (63) (58) Income taxes received (paid) (120) (109) (87) Cash flows from operating activities from continuing operations 1,114 436 621 Cash flows from operating activities from discontinued operations - - 21 Cash flows from operating activities 1,114 436 642 Proceeds from sales of (payments for the acquisition of) financial investments, net 265 (238) 210 Payments for the aquisition of subsidiaries or other businesses, net of cash acquired - - (7) Payments for the acquisition of other intangible assets (92) (85) (78) Payments for the acquisition of property, plant and equipment (422) (456) (364) Other investing activities (1) 42 116 Cash flows from investing activities (250) (737) (123) Issuance of (repayment of) long-term financial debt and hybrid capital (1,054) 1,000 - Issuance of (repayment of) short-term financial debt - - (400) Proceeds from hybrid capital (cash outflow to hybrid capital investors) (22) - (22) Proceeds from issuance/payments for repurchase of ordinary shares - (178) - Dividend payments - (456) - Other financing activities (22) (25) (21) Cash flows from financing activities (1,098) 341 (443) Net change in cash and cash equivalents (234) 40 76 Currency effects on cash and cash equivalents 2 3 (12) Change in cash and cash equivalents reclassified as held for sale - 21 - Cash and cash equivalents at beginning of period 1,300 1,236 1,215 Cash and cash equivalents at end of period 1,068 1,300 1,279
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Public / For the Business and Trade Press: infpr202608-125e 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 - Key financial figures 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 purchase and sale of financial investments. Free Cash Flow serves as an additional performance indicator since a portion of Infineon’s liquidity is held in the form of financial investments. This does not imply that the Free Cash Flow calculated in this way, can be used for other expenditure, since dividends, debt service obligations, and other fixed payments have not yet been deducted. Free Cash Flow should not be considered as substitutes or superior performance indicator, but should be seen as additional information along with the cash flow presented in the Consolidated Statement of Cash Flows, other liquidity performance indicators and other performance indicators determined in accordance with IFRS. Free Cash Flow is derived from the Consolidated Statement of Cash Flows as follows: € in millions Q3 FY 2026 Q2 FY 2026 Q3 FY 2025 Cash flows from operating activities1 1,114 436 621 Cash flows from investing activities1 (250) (737) (123) Payments for the acquisition of (proceeds from sales of) financial investments, net (265) 238 (210) Free Cash Flow 599 (63) 288 1 From continuing operations. Gross Cash Position and Net Cash Position The following table shows the gross and net cash positions. Since Infineon holds some of its liquid funds in the form of financial investments that are not classified as cash and cash equivalents under IFRS, it reports both the gross and net cash positions to provide investors with a clearer picture of its overall liquidity situation. The gross and net cash positions are derived from the Consolidated Statement of Financial Position as follows: € in millions 30 Jun 26 31 Mar 26 30 Sep 25 Cash and cash equivalents 1,068 1,300 1,356 Financial investments 588 853 746 Gross cash position 1,656 2,153 2,102 Minus: Short-term financial debt and current portion of long-term financial debt 807 1,814 1,047 Long-term financial debt 6,034 6,060 5,782 Gross financial debt 6,841 7,874 6,829 Net cash position (5,185) (5,721) (4,727)
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Public / For the Business and Trade Press: infpr202608-125e 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 - D I S C L A I M E R The condensed Consolidated Statement of Financial Position, the condensed Consolidated Statement of Profit or Loss and the condensed Consolidated Statement of Cash Flows have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The disclosures required by IAS 34 are not made. The same accounting policies are applied as in the most recently published consolidated financial statements as of September 30, 2025. The Company`s Management Board prepared the condensed Consolidated Interim Financial Statements on August 4, 2026. The Quarterly Group Statement is prepared in accordance with the Frankfurt Stock Exchange’s stock exchange regulation 53 paragraph. The Quarterly Group Statement 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 Quarterly Group Statement 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 Quarterly Group Statement are unaudited.