Himax Technologies (HIMX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $227.4 million, up 14.2% sequentially and 5.9% year-over-year, surpassing guidance due to strong automotive IC sales.

• Gross margin improved to 33.1%, above guidance and up from 30.4% last quarter and 31.2% a year ago, driven by favorable product mix and higher-margin automotive ICs.

• Diluted EPS was $0.114, exceeding guidance and up from $0.046 last quarter and $0.095 a year ago.

• Automotive business remained the largest revenue contributor, representing well over 50% of total revenues.

• Optimism continues for automotive, smart glasses, and CPO segments, with new product launches and mass production ramps expected into 2027.

Financial highlights

• Q2 operating income was $24.6 million, with an operating margin of 10.8%, up from 5.1% last quarter and 8.4% a year ago.

• After-tax profit was $19.9 million (11.4 cents per diluted ADS), up from $8.0 million last quarter and $16.5 million a year ago.

• Cash, cash equivalents, and other financial assets totaled $298.7 million at quarter end.

• Operating cash flow was $17.5 million, with $11 million of income tax payment deferred under a new Taiwan policy.

• Inventory stood at $151.5 million, flat sequentially but up year-over-year.

Outlook and guidance

• Q3 2026 revenue expected to rise 7%-11% sequentially; gross margin guided at around 34%.

• Q3 EPS forecasted at $0.08-$0.10 per diluted ADS, factoring in $13 million in annual employee bonuses.

• Automotive driver IC sales projected to grow by double digits for full-year 2026, with momentum into 2027.

• Non-driver segment revenue contribution expected to approach 30% in 2027, up from 20%, led by automotive TCON and WiseEye products.

• CPO business expected to make meaningful financial contributions starting in 2027.