(Bloomberg) — Infineon Technologies AG forecast revenue ahead of analyst estimates, as the German chipmaker struggles to emerge from a prolonged industry slump.
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The company raised its full-year outlook and is now expecting flat to slightly higher fiscal 2025 revenue, versus a slight decline previously. For the current quarter ending March, sales should remain about the same at €3.6 billion ($3.7 billion). That in part reflects currency effects and surpasses the average €3.4 billion analyst estimate.
Still, Chief Financial Officer Sven Schneider warned of uncertainty stemming from Trump administration tariffs, particularly if they ignite a cycle of retaliation.
“To be very clear, a major escalation of tariffs is not included in our guidance,” Schneider told Bloomberg Television. “Because we are still not giving up and advocating for free trade. An escalation of tariffs and counter-tariffs would be a negative.”
Infineon, which gets most of its revenue from customers in the automotive industry, has been struggling with a downturn in electric vehicle sales alongside peers. NXP Semiconductors NV gave a disappointing forecast on Monday, missing analysts’ estimates. Texas Instruments Inc. and STMicroelectronics NV both reported lower-than-expected outlooks in their financial results last week. STMicro may cut as much as 6% of its workforce to reduce costs and cope with the downturn, Bloomberg News reported on Friday.
Infineon Chief Executive Officer Jochen Hanebeck said in November that he expected a turnaround by the end of the 2025 fiscal year.
Infineon is grappling with greater competition in China from rival Texas Instruments. It’s likely to endure slower EV sales as a result of US President Donald Trump’s announcement of tariffs on imports from Canada and Mexico, Bloomberg Intelligence analyst Ken Hui wrote in a note ahead of the results.
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