Himax Technologies (HIMX) Q1 2026 earnings summary

Executive summary

• Q1 2026 profit and EPS exceeded guidance, with revenue and gross margin at the high end of projections despite seasonal slowdown.

• Q2 2026 revenue expected to rise 10–13% sequentially, with gross margin around 32% and profit per ADS of 8.6–10.3 cents.

• Automotive and non-driver IC businesses, including Tcon and WiseEye AI, are key growth drivers, with new projects entering mass production in H2 2026.

• Strategic focus on smart glasses, ultra-low power AI, and CPO to diversify revenue and enhance profitability.

• Rapid AI demand is tightening foundry and packaging capacity, increasing costs and prompting pricing adjustments.

Financial highlights

• Q1 2026 revenue: $199.0 million, down 2.0% sequentially but at the high end of guidance.

• Gross margin: 30.4%, matching the high end of guidance.

• Q1 profit per diluted ADS: $0.046 (4.6 cents), above guidance range.

• Operating profit: $10.2 million (5.1% margin), up sequentially but down year-over-year.

• Cash and equivalents: $287.6 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue projected to increase 10–13% sequentially.

• Gross margin expected around 32% due to favorable product mix.

• Q2 profit per diluted ADS estimated at $0.086–$0.103 (8.6–10.3 cents).

• Upward momentum anticipated for the rest of 2026, led by automotive and non-driver ICs.

• Recovery in Q2 driven by inventory restocking and new auto projects.