Looking ahead to the fourth quarter, the company anticipates revenue growth of 13 percent year-over-year, reaching approximately 4.7 billion euros. Based on this projection, the Segment Result Margin is expected to reach around 23 percent.

For fiscal 2026, Infineon has revised its revenue expectation to about 16.3 billion euros, reflecting an annual growth rate of roughly 11 percent. This replaces the prior forecast of significantly higher revenue compared to the previous year.

The adjusted gross margin is projected to stay within the low-to-mid-forties percentage range, while the Segment Result Margin should hold near 20 percent.

The ATV segment is anticipated to expand at a slower pace than the overall Group average. Although momentum in software-defined vehicles persists, this is balanced by weaker demand for high-voltage components in electromobility applications.

Jochen Hanebeck, CEO of Infineon, commented, "A growing number of our target markets are displaying positive momentum. Our power supply solutions for AI data centers continue to see very strong demand and remain our key growth driver. Additionally, rising global investments in grid infrastructure are providing support. Automotive orders are also increasing noticeably."

In the third quarter, net profit reached 423 million euros, marking a 39 percent increase from 305 million euros in the prior year. On a continuing operations basis, profit rose 44 percent from 293 million euros last year.

Earnings per share from continuing operations climbed 45 percent to 0.32 euro from 0.22 euro a year earlier.

Adjusted earnings from continuing operations totaled 576 million euros or 0.44 euro per share, compared to 0.37 euro in the previous period.

Segment Result advanced 19 percent to 797 million euros, with the segment result margin improving to 19.1 percent from 18 percent last year.

Revenue for the quarter increased 12.6 percent to 4.172 billion euros from 3.704 billion euros a year ago.

On the XETRA exchange in Germany, Infineon shares declined 3.20 percent to 61.68 euros.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the positions of Nasdaq, Inc.