Himax 3Q26 Preview: Street's Full Year Needs Fourth-Quarter Revenue Up Another 11%

US$243-252m

3Q26 revenue guide, up 7-11% QoQ

~34%

3Q26 gross margin guide, from 33.1%

US$0.08-0.10

3Q26 profit per diluted ADS guide, after bonus

US$275m

4Q26E revenue implied by street FY26E

Key Takeaways

Third-quarter profit guide carries a US$11.8m bonus charge

Management guided 3Q26 revenue up 7-11% QoQ to US$243.3-252.4m, gross margin around 34% and profit of 8.0-10.0 cents per diluted ADS, against 11.4 cents in 2Q26. The profit range absorbs US$11.8m of annual employee bonus expense, 6.8 cents per ADS before tax, against about US$0.2m in each of the prior three quarters.

Will gross margin reach 34% with mature-node capacity tight?

Gross margin reached 33.1% in 2Q26, above the 32% guide, as car chips took a larger share of sales. Foundry, packaging and testing capacity for older chips is still tight, so 34% depends on car chips and price increases outrunning higher costs.

Will the fourth-quarter guide support the street's full year?

The street's FY26E revenue of US$949m leaves about US$275m for 4Q26E, 11% above the 3Q26 guide midpoint. Fourth-quarter revenue rose 2% QoQ in 2025 and 7% in 2024.

Shares have fallen 29% since 2 October

HIMX closed at US$10.87 on 30 October, against US$15.24 on 2 October and US$13.35 before the 2Q26 results. At 25x the street's FY26E earnings against a display-driver peer median of 16x, the premium rests on CPO and smart-glasses revenue the company expects to become meaningful in 2027.

Share price - HIMX — Oct 2025 to Oct 2026 (US$).

Company snapshot

Himax Technologies (HIMX US) is a Tainan-based fabless designer of display driver chips, listed on Nasdaq. Drivers for small and medium-sized panels, led by car displays, were 71.4% of 2Q26 revenue, drivers for TVs, monitors and notebooks 8.4%, and other chips 20.2% (Exhibit 2). Car chips, including drivers and timing controllers (Tcon, the chip that coordinates a screen's drivers), were well over half of revenue. Newer businesses include WiseEye low-power AI vision sensors, microdisplays for smart glasses, and co-packaged optics (CPO), which puts the optical data link beside the switch chip in AI data centers, built with Taiwan fiber-optic partner FOCI.

Exhibit 2: Himax revenue mix, 2Q26 (% of revenue)

Small and medium-sized drivers were 71.4% of 2Q26 revenue, other chips 20.2% and large-panel drivers 8.4%

Source: Himax 2Q26 earnings release (6 Aug 2026), Zero One Investment Research.

Expectations snapshot

Himax reports 3Q26 results on 5 November, with the call at 8:00 a.m. US Eastern time (company announcement, 5 October). It does not publish monthly revenue, so the quarter arrives all at once. The table sets the company's guidance against the street's numbers and ours.

Exhibit 1: Himax 3Q26, 4Q26E, FY26E and FY27E expectations

Metric	3Q26	4Q26E	FY26E	FY27E
Revenue	Guided +7-11% QoQ (US$243.3-252.4m); 2Q26 US$227.4m	Street implied about US$275m; not guided	Street US$949m (+14%); Zero One US$947m	Street US$1,231m (+30%); Zero One US$1,310m (+38%)
Gross margin	Guided around 34% (2Q26: 33.1%)	Not guided	Not guided (1H26: 31.8%)	Not guided
Net profit	Guided 8.0-10.0 cents per diluted ADS (US$14.0-17.4m), after US$11.8m bonus expense	Street implied about US$32m	Street US$76m; Zero One US$82m	Street US$176m; Zero One US$227m
Reported to date	No monthly revenue filed	n/a	1H26 revenue US$426.4m (-1% YoY); net profit US$27.9m	n/a

Source: Himax 2Q26 earnings release (6 Aug 2026), FMP consensus estimates, Zero One Investment Research Financial Model. Profit in US$ on 174.4m diluted ADS. 4Q26E implied figures are street FY26E less 1H26 reported and the 3Q26 guide midpoint.

Recent developments

Second-quarter results beat every guided line on car chips. Revenue was US$227.4m, up 14.2% QoQ against a guide of 10-13%, gross margin 33.1% against about 32%, and profit 11.4 cents per diluted ADS against 8.6-10.3 cents. Management credited better-than-expected automotive sales (company release, 6 August).
A leading global brand launched smart glasses using WiseEye. Himax said it is working with brands, platform providers, device makers and cloud companies entering the market, with some projects set to reach mass production in 2027 (company release, 6 August).
CPO products began engineering production on schedule. Both the first generation, for 1.6T and 3.2T links, and the 6.4T second generation started engineering production ramps in the third quarter. Mass-production timing depends on customers' deployment schedules, and Himax expects 2027 shipments to be significantly higher than 2026 (company release, 6 August).
Cash went to the dividend and the bonus. Himax paid a US$44m dividend on 10 July and planned to distribute about US$11.7m of employee bonus at the end of September. A pending sale of an equity-method stake, announced on 1 July, would bring a pre-tax gain of US$23-24m on closing, expected in the fourth quarter subject to approvals (company release, 6 August).
The shares have given back their post-results gain. They rose 3% on results day to US$13.76 and reached US$15.41 on 17 August. From US$15.24 on 2 October they fell 29% to US$10.87 on 30 October; the drop began with a 5% fall on 7 October, a session in which chip stocks sold off as US 10-year Treasury yields climbed (StockStory, 7 October).

Car chips carry the third-quarter revenue guide

Car chips drive most of the guided growth. Himax is listed only on Nasdaq and files no monthly revenue, so the segment guidance from 6 August is all that is known about the quarter.

Small and medium-sized drivers, 71.4% of 2Q26 revenue, are guided up high-single digits QoQ. Car drivers rise by a solid double digit as several LTDI projects, single chips that drive and sense touch on very wide car screens, enter mass production. Smartphone chips rise on a leading brand's models, while tablet chips fall because capacity limits shipments.
Other chips, 20.2% of revenue, are guided up low-teens, with Tcon up low-teens and car Tcon up by a decent double digit.
Large-panel drivers, 8.4% of revenue, are guided down single digits: monitor customers bought ahead in earlier quarters, while TV chips rise.

Exhibit 3: Himax quarterly revenue, 1Q24 to 2Q26 reported and 3Q26E guide midpoint (US$m)

Quarterly revenue ranged from US$199m to US$240m between 1Q24 and 2Q26; the 3Q26 guide midpoint is US$247.9m

Source: Himax earnings releases (3Q25, 1Q26, 2Q26), FMP financial statements (1Q24 to 2Q25, 4Q25), Zero One Investment Research. 3Q26E is the midpoint of the +7-11% QoQ guide.

At the guide midpoint, 3Q26 revenue of US$247.9m would be up 24% YoY and the highest of the ten quarters since 1Q24 (Exhibit 3). Management expects full-year car driver sales to grow by double digits, with momentum extending into 2027.

Management guided gross margin to 34% and expects capacity to stay tight

Himax guides one quarter at a time and gives no full-year targets. For 3Q26 it guided revenue up 7-11% QoQ, gross margin around 34% depending on product mix, and profit of 8.0-10.0 cents per diluted ADS, or US$14.0-17.4m on 174.4m ADS (company release, 6 August).

The margin guide comes with a cost warning. AI demand has tightened foundry, packaging and testing capacity on the older production processes Himax uses, raising its costs and lengthening lead times. Management said some price increases took effect in 2Q26 and more could follow, and that it is adding suppliers in China, Singapore, Korea, Japan and Malaysia.

Exhibit 4: Himax gross margin, 1Q24 to 2Q26 reported and 3Q26E guide (%)

Gross margin held between 29.3% and 32.0% from 1Q24 to 1Q26, rose to 33.1% in 2Q26, and is guided to about 34% in 3Q26

Source: Himax earnings releases (1Q26, 2Q26), FMP financial statements (1Q24 to 4Q25), Zero One Investment Research. 3Q26E is the company guide of around 34%.

The street expects FY26E revenue of US$949m, up 14%, and net profit of US$76m (FMP consensus; one analyst on FY26E). With 1H26 net profit at US$27.9m and the 3Q26 guide midpoint at US$15.7m, that leaves about US$32m for 4Q26E. The US$23-24m pre-tax gain from the stake sale, if it closes in the fourth quarter, would cover much of that.

Our model carries FY26E revenue of US$947m, in line with the street, and net profit of US$82m. For FY27E we carry revenue of US$1,310m, up 38%, and net profit of US$227m, against the street's US$1,231m and US$176m. The difference rests on 2027 CPO volume and smart-glasses projects reaching mass production.

Exhibit 5: Himax annual revenue, FY23 to FY25 reported and FY26E to FY27E street (US$m)

Revenue fell from US$945m in FY23 to US$832m in FY25; the street expects US$949m in FY26E and US$1,231m in FY27E

Source: Himax annual results, FMP consensus estimates, Zero One Investment Research.

We expect revenue within the guided range and gross margin near 34%

Revenue of US$245-252m, within the guided range. Car chips, well over half of revenue, are guided up by a solid double digit, and the 2Q26 beat came from the same line. Capacity limits on tablet chips make the top of the range harder to clear.
Gross margin of 33.5-34.5%. More car chips and Tcon in the mix support the guide; higher wafer, packaging and testing costs pull the other way.
Profit of 8-10 cents per diluted ADS. The US$11.8m bonus charge is why profit is guided below 2Q26's 11.4 cents while revenue and margin rise.
A fourth-quarter guide with forces on both sides. LTDI and car Tcon ramps, smartphone chips for a leading brand's premium models, and the stake-sale gain if it closes all support a strong quarter. Tight capacity, which already limits tablet shipments, and customers holding lean inventories and ordering only what they need, weigh against it.

What investors should watch: margin, the fourth-quarter guide and 2027 programs

Three issues in the release bear on the 2026 and 2027 numbers; for each we name the specific thing to check.

Does gross margin hold at 34%, and where is the 4Q26 margin guide? Check 3Q26 gross margin against the guide and 2Q26's 33.1%, and whether further price increases have taken effect. A margin below 33% would mean costs outpaced pricing and mix.
Does the fourth-quarter guide reach the 11% the street's year implies? The street's FY26E leaves about US$275m for 4Q26E. Check the 4Q26 revenue guide by segment, especially car drivers and Tcon, and whether the stake sale closes in the quarter, adding a pre-tax gain of US$23-24m.
Are the 2027 programs on schedule? The street's FY27E revenue is up 30% and ours up 38%. Check CPO customer qualification and the move from engineering ramps to mass production, the number of smart-glasses projects set for 2027 mass production, and whether the US customer for WiseGuard security sensors still starts production toward year-end.

Valuation and peer comparables: 25x FY26E earnings, 11x the street's FY27E

At US$10.87 Himax trades at 25.0x the street's FY26E EPS and 14.9x forward EV/EBITDA, against a peer median of 15.7x and 10.0x (Exhibit 6). Novatek, the largest display-driver maker, trades at 16.5x forward earnings.

The peer P/E median rests on Novatek and Raydium only, because FocalTech and LX Semicon earn net margins too thin for a meaningful multiple. On the street's FY27E net profit of US$176m, Himax trades at 10.8x.

The FY26E multiple carries the 2027 programs. If CPO moves to volume shipments and smart-glasses projects reach mass production on the company's schedule, the FY27E multiple is the one that applies; if either slips, the shares rest on the display-driver business at 25x.

Exhibit 6: Himax versus display-driver peers

Company	Mkt cap (US$bn)	P/E (TTM)	P/E (Fwd)	EV/Sales (TTM)	EV/Sales (Fwd)	EV/EBITDA (TTM)	EV/EBITDA (Fwd)
Taiwan-Listed
Novatek Microelectronics	10.8	20.0x	16.5x	3.0x	2.7x	15.3x	11.0x
Raydium Semiconductor	0.6	14.7x	14.9x	0.7x	0.7x	9.9x	8.9x
FocalTech Systems	0.3	n.m.	n.m.	0.7x	0.7x	n.m.	17.1x
Korea-Listed
LX Semicon	0.4	n.m.	n.m.	0.3x	0.3x	4.2x	4.8x
Peer median (all peers)		17.3x	15.7x	0.7x	0.7x	9.9x	10.0x
Himax Technologies	1.9	n.m.	25.0x	2.0x	1.7x	23.0x	14.9x

Source: FMP market data and consensus estimates, Zero One Investment Research. Prices at the latest Taipei, Seoul and New York closes before publication. Forward multiples use each company's next unreported fiscal year per FMP consensus (December 2026). P/E shown as n.m. where net margin is below 5%; multiples above 100x shown as n.m. Parade Technologies omitted (no vendor data). P/B is not shown for this group.

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