Infineon Technologies has reported its results for the second quarter of the 2025 fiscal year (period ended 31st March 2025).
“Infineon has performed well in the second quarter. Even at a more unfavourable exchange rate of $1.125 to the euro, we would be right on track and in line with our previous expectations for the fiscal year. Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes. We have therefore applied a haircut of 10% of expected revenue in the fourth quarter of the 2025 fiscal year. We are now anticipating a slight decline in revenue compared with the prior year,” says Jochen Hanebeck, CEO of Infineon.
Group performance in the second quarter of the 2025 fiscal year
Group revenue rose from €3,424 million in the first quarter of the 2025 fiscal year to €3,591 million in the second quarter. The 5% increase in revenue was the result of greater demand in the Automotive (ATV), Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments. In the Power & Sensor Systems (PSS) segment, revenue remained virtually constant.
Infineon generated operating profit in both the first and second quarters of the 2025 fiscal year of €318 million.
The financial result in the second quarter of the 2025 fiscal year was a net loss of €28 million, compared with a net loss of €17 million in the first quarter.
Investments – which Infineon defines as the sum of investments in property, plant, and equipment, investments in other intangible assets and capitalised development costs decreased from €731 million in the first quarter of the 2025 fiscal year to €470 million in the second quarter.
Segment earnings for the second quarter of the 2025 fiscal year
On 1st January 2025, the Sense & Control business line, which was previously allocated to the Automotive segment, was transferred to the Power & Sensor Systems segment.
Automotive segment revenue improved in the second quarter of the 2025 fiscal year to €1,858 million, from €1,752 million in the prior quarter. Reasons for the 6% increase were higher revenue from electric vehicles and fading inventory adjustments by customers.
In the second quarter of the 2025 fiscal year, revenue in the Green Industrial Power segment increased to €397 million. In the prior quarter, the revenue generated in this segment was €340 million. The 17% rise was the result of improved demand in all areas starting from a low base. Especially industrial drives and renewable energy contributed to the increase.
Revenue in the Power & Sensor Systems segment decreased slightly by 1% in the second quarter of the current fiscal year to €979 million, compared with €987 million in the prior quarter. Revenue from products for servers and data centres, especially for artificial intelligence, continued to increase, while revenue in the other areas saw a slight decline.
Revenue in the Connected Secure Systems segment increased in the second quarter of the current fiscal year to €356 million, up from €344 million in the prior quarter. The main reason for the 3% increase was higher demand in the areas of payment cards and government identification.
Outlook for the third quarter of the 2025 fiscal year
In the third quarter of the 2025 fiscal year, based on an assumed exchange rate of $1.125 to the euro, Infineon expects revenue to reach about €3.7 billion. The GIP and PSS segments should see a percentage growth rate that is higher than the group average. Revenue in the ATV segment is expected to remain unchanged and for the CSS segment a revenue decline is expected compared to the previous quarter.
Outlook for the 2025 fiscal year
The outlook for the 2025 fiscal year excludes the planned acquisition of the automotive Ethernet business of Marvell Technology, Inc., USA, (Marvell). In particular, it does not take account of the purchase price payment, since the transaction is still subject to the customary closing conditions and regulatory approvals.
Based on an assumed exchange rate of $1.125 to the euro (previously 1.05), revenue in the 2025 fiscal year is now forecast to slightly decline in comparison with the 2024 fiscal year (previously flat to slightly up). The revised outlook, in addition to the change in assumption about exchange rates, includes a haircut resulting from tariff disputes of 10% of expected revenue in the fourth quarter of the 2025 fiscal year. Without the haircut the forecast would have remained essentially unchanged.
