By Mauro Orru

Infineon Technologies is scheduled to report results for its fiscal third quarter on Tuesday. Here is what to know:

REVENUE FORECAST: The German chip maker is expected to post revenue of nearly 3.71 billion euros ($4.30 billion) in the three months to the end of June, according to a Vara Research consensus. The forecast is slightly higher than the 3.70 billion euros that Infineon reported a year earlier. Infineon had guided for revenue of around 3.7 billion euros in the quarter.

EARNINGS FORECASTS: Net profit is expected to come down to 324 million euros from 403 million euros, according to the Vara Research consensus. Infineon's segment result, a key profitability metric, should decline to 585 million euros from 734 million euros, generating a 15.8% margin. Infineon had guided for a margin in the mid-teens percentage range.

Infineon shares are up more than 15% over the past 12 months.

WHAT TO WATCH:

--GUIDANCE: Investors will be on the lookout for any changes that Infineon could make to its revenue and segment result margin guidance for the fiscal year to the end of September. The company cut its guidance in May, saying it was removing 10% of revenue it previously expected in the last quarter of the fiscal year because of the estimated impact of tariffs.

JPMorgan analysts wrote in a note to clients that Infineon will likely reinstate the removed revenue in its guidance for the fiscal fourth quarter since none of its competitors have actually taken a hit from tariffs.

Infineon is forecasting a slight decline in sales this fiscal year from the 14.96 billion euros it reported for fiscal 2024. Its segment result margin is expected to be in the mid-teens percentage range compared with 20.8% in fiscal 2024.

--DEMAND TRENDS: The market will also be monitoring remarks from Infineon on demand in its end-markets. Semiconductors to power artificial intelligence remain highly popular, but orders for legacy chips found in cars and industrial equipment have been subdued in recent years. Carmakers and manufacturers of industrial machinery cut spending on chips since they stockpiled the semiconductors they needed years ago.

Infineon rival STMicroelectronics, which supplies Tesla, last month forecast another quarter of lower chip sales as demand for automotive clients remained weak. Elon Musk's Tesla, a big client for STMicroelectronics, logged a 16% drop in net income for the quarter, a setback for the company as automotive sales continue to fall.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

August 04, 2025 04:43 ET (08:43 GMT)

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