Q2 FY2026
Filed Aug 6, 2026alphai · Earnings readHIMX · Q2 2026 · ended June 30, 2026
Himax Technologies, Inc. Reports Second Quarter 2026 Financial Results; Provides Third Quarter 2026 Guidance
✓Strong quarter
Q2 revenue, gross margin and profit per diluted ADS each exceeded the Company’s May 7, 2026 guidance, supported by better-than-expected automotive IC sales and a more favorable product mix.
Revenue
$227.4 million
14.2% q/q
Large display drivers
$19.2 million
decline of 21.0% q/q
Gross margin · other
33.1%
Q3 2026 outlook
7% to 11% QoQ
GM Around 34%, depending on final product mix
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesother | $227.4 million | 14.2% | – |
| Gross marginother | 33.1% | – | – |
| Operating expensesother | $50.7 million | 0.8% | 3.6% |
| Operating incomeother | $24.6 million | – | – |
| Operating marginother | 10.8% | – | – |
| After-tax profitother | $19.9 million | – | – |
| Profit attributable to Himax Technologies, Inc. stockholdersother | $19,879 thousand | – | – |
| Diluted earnings per ADS attributable to Himax Technologies, Inc. stockholdersother | $0.114 | – | – |
| Profit per diluted ADSother | 11.4 cents | – | – |
| Net cash provided by operating activitiesother | $17,538 thousand | – | – |
| Capital expenditureother | $4.3 million | – | – |
| Diluted Weighted Average Outstanding ADSother | 174,426 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Large display driversPanel makers pulled forward inventory purchases for high-end TV ICs in prior quarters. | $19.2 million | decline of 21.0% | – |
| Small and medium-sized display driver segmentAutomotive driver sales increased by double digits quarter over quarter, driven by broad-based customer replenishment and the ramp-up of new TDDI and DDIC projects for a leading panel customer. | $162.3 million | increase of 19.6% | – |
| Non-driver salesRobust automotive Tcon shipments were supported by replenishment across a broad customer base. | $45.9 million | 17.7% increase | – |
Q3 2026 outlook
- Revenue7% to 11% QoQ
- Gross marginAround 34%, depending on final product mix
- NoteProfit: 8.0 cents to 10.0 cents per diluted ADS
- NoteLarge display driver IC sales to decline by single digit from last quarter
- NoteSmall and medium-sized display driver IC business is expected to increase by high-single-digits from last quarter
- NoteAutomotive driver IC sales are set to increase by a solid double-digit quarter-over quarter
- NoteNon-driver IC revenues are expected to increase by low-teens sequentially
- NoteTcon sales to increase by low-teens quarter over quarter
- NoteAutomotive Tcon business is expected to deliver decent double-digit growth in Q3
- NoteQ3 expense related to employee bonus is estimated to be $11.8 million, representing 6.8 cents per diluted ADS before tax
Capital returns
- Payment of $44 million for annual dividends to shareholders made on July 10
- Subject to the final Board decision, Himax will distribute around $11.7 million, the immediately vested portion of this year's employee bonus awards, at the end of Q3.
- Payment of cash dividends: $0 thousand for the three months ended June 30, 2026.
What drove it
- Better-than-expected automotive IC sales drove the sequential revenue increase.
- A more favorable product mix, with increased sales from higher-margin automotive IC products, supported gross margin.
- Automotive business, comprising DDIC, TDDI, Tcon, and OLED IC sales, remained the largest revenue contributor and represented well over 50% of total revenues.
- Tablet IC sales increased sequentially due to customers’ early pull-in demand amid rising memory price sentiment and continued shipments for a customer’s premium OLED model.
- Automotive Tcon shipments benefited from replenishment across a broad customer base.
- Some customer pricing adjustments to share higher manufacturing and procurement costs took effect in the second quarter.
Concerns
- Industry-wide capacity constraints at foundry, packaging and testing facilities on mature process nodes are raising manufacturing and procurement costs, extending lead times, and increasing difficulty in securing capacity.
- Large display driver revenue declined 21.0% sequentially after high-end TV IC inventory purchases were pulled forward in prior quarters.
- Smartphone IC sales decreased sequentially following the initial ramp up of an OLED IC for a leading smartphone brand’s mainstream model in Q1.
- Accounts receivable increased to $220.3 million and DSO increased to 93 days.
- Q3 profit guidance incorporates an estimated $11.8 million employee-bonus expense.
- The proposed divestiture gain remains subject to customary closing conditions and regulatory approvals.
What to watch
- Execution of Q3 guidance for revenue growth of 7% to 11% QoQ, gross margin around 34%, and profit of 8.0 cents to 10.0 cents per diluted ADS.
- Automotive driver IC and automotive Tcon growth, including mass production of multiple LTDI projects.
- Availability of foundry, packaging and testing capacity and the pace of customer pricing adjustments.
- Q3 operating-expense impact from the estimated $11.8 million employee-bonus expense.
- CPO engineering production ramps for Gen 1 and Gen 2 products and progress toward mass-production readiness.
- Smart-glasses design-ins and projects expected to enter mass production in the upcoming quarters.
- Closing of the proposed equity-method investee divestiture, which is expected in the fourth quarter of this year.
Balance sheet and cash flow
- Cash, cash equivalents and other financial assets: $298.7 million as of June 30, 2026, compared to $332.8 million at the same time last year and $287.6 million a quarter ago.
- Cash and cash equivalents: $271,296 thousand as of June 30, 2026, compared to $304,678 thousand as of June 30, 2025 and $259,693 thousand as of March 31, 2026.
- Accounts receivable, net: $220,250 thousand as of June 30, 2026, compared to $219,035 thousand as of June 30, 2025 and $190,940 thousand as of March 31, 2026.
- Inventories: $151,471 thousand as of June 30, 2026, compared to $134,573 thousand as of June 30, 2025 and $151,671 thousand as of March 31, 2026.
- DSO was 93 days at the quarter end, as compared to 86 days last quarter and 92 days a year ago.
- Current portion of long-term unsecured borrowings: $6,000 thousand as of June 30, 2026.
- Long-term unsecured borrowings: $19,500 thousand as of June 30, 2026.
- Short-term secured borrowings: $568,200 thousand as of June 30, 2026.
- Net cash provided by operating activities: $17.5 million in the second quarter.
- Net cash provided by operating activities: $17,538 thousand for the three months ended June 30, 2026.
- Net cash used in investing activities: $(4,833) thousand for the three months ended June 30, 2026.
- Net cash used in financing activities: $(1,247) thousand for the three months ended June 30, 2026.
- Net increase in cash and cash equivalents: $11,603 thousand for the three months ended June 30, 2026.
- Himax is entitled to defer approximately $11.0 million of income tax payments for one year without interest. Excluding this deferral, second-quarter operating cash flow would have been approximately $6.5 million.
- Himax expects to recognize a pre-tax gain of approximately $23 to $24 million upon closing of the proposed divestiture of investment in an equity-method investee.
Analysis
Himax reported Q2 2026 net revenues of $227.4 million, up 14.2% sequentially and above its prior guidance for a 10.0% to 13.0% increase. The Company attributed the outperformance primarily to better-than-expected automotive IC sales. Gross margin reached 33.1%, above guidance of around 32% and up from 30.4% in the previous quarter, reflecting a more favorable product mix with increased higher-margin automotive IC sales. Profit per diluted ADS was 11.4 cents, above the 8.6 to 10.3 cents guidance range.
Management, verbatim
Notwithstanding industry-wide supply constraints, we remain optimistic about the long-term growth prospects of our automotive display IC business.
Mr. Jordan Wu, President and Chief Executive Officer
We remain particularly optimistic about the smart glasses market.
Mr. Jordan Wu, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP metrics
- Non-GAAP metrics
- Free cash flow
- Q2 2026 revenue year-over-year percentage change
- Q2 2026 gross margin year-over-year percentage change
- Q2 2026 operating income year-over-year and quarter-over-quarter percentage changes
- Q2 2026 after-tax profit year-over-year and quarter-over-quarter percentage changes
- Q2 2026 diluted earnings per ADS year-over-year and quarter-over-quarter percentage changes
- Segment revenue year-over-year changes for large display drivers, small and medium-sized display drivers, and non-driver sales
- Q3 2026 operating-expense guidance excluding employee-bonus commentary
- Q3 2026 tax-rate guidance
- Free cash flow guidance
- Previous-release outlook for formal guidance comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.