Berenberg Sees Infineon FY27 Outlook as 'Conservative' Amid Earnings Momentum

MT Newswires · 2d ago
03:48 AM EST, 11/11/2026 (MT Newswires) -- Berenberg affirmed its investment case for Infineon Technologies (IFX.F), saying the German semiconductor manufacturer's fiscal 2027 outlook is "conservative" amid a positive earnings growth trajectory. "In 2027, revenue will be driven by the power systems segment growing materially faster than the group, with the automotives segment growing by a mid-teens percentage and edge systems growing in the low teens. The company also stated that the data center revenue run-rate already achieved EUR800m in Q4, which makes its FY 2027 guidance of close to EUR4bn look conservative, in our view. In addition, the company mentioned that there is potential upside to 2027 margin guidance from revenue, pricing and FX. In our view, the guidance for 2027 confirms the positive revenue and margin momentum we have seen over the past year, despite the negative noise regarding AI investment sustainability in the market," according to a Wednesday note. At its fiscal fourth-quarter 2026 earnings release on Tuesday, Infineon forecast fiscal 2027 revenue of 20 billion euros, mid- to high-40% adjusted gross margins and mid-20% segment result margin. Analysts noted that these projections aligned with market expectations, adding that the pricing environment is expected to remain "solid" in 2027. Accordingly, the research firm lifted its 2027 sales, EBIT and EPS assumptions, before trimming these estimates for the following fiscal year. Berenberg also maintained its buy rating and price target of 100 euros on the stock.