Himax Technologies reported third quarter 2026 revenue of $246.8 million, up 8.5% sequentially, and diluted earnings per ADS of $0.107, which exceeded both company guidance and analyst expectations. While automotive driver sales saw strong momentum during the quarter, management warned of a significant sequential revenue decline for the fourth quarter 2026 due to abrupt order adjustments from Chinese automotive customers.
Key Highlights
- Diluted earnings per ADS reached $0.107, beating the $0.09 analyst estimate and the company's own guidance range of $0.08 to $0.10.
- Third quarter gross margin improved to 34.2%, up from 33.1% in the prior quarter and in line with management's forecast of approximately 34%.
- Management issued weak guidance for the fourth quarter 2026, projecting a sequential revenue decline of 22% to 26% as Chinese automakers adjust inventory levels after aggressive prior purchases.