Himax Technologies, Inc.

Second-quarter 2026 revenue was $227.4 million, up 14.2% sequentially and 5.9% year over year. Gross margin was 33.1%, versus 30.4% in Q1 and 31.2% a year ago. Profit per diluted ADS was $0.114, versus $0.046 in Q1 and $0.095 a year ago. Operating income was $24.6 million, or a 10.8% operating margin, versus 5.1% in Q1 and 8.4% a year ago. Cash, cash equivalents and other financial assets were $298.7 million at June 30, 2026. For Q3 2026, Himax guided revenue to increase 7% to 11% sequentially, gross margin to around 34%, and profit attributable to shareholders to $0.08 to $0.10 per diluted ADS. The company said the Q3 EPS guide includes about $11.8 million of employee bonus expense, and noted the expected annual bonus is around $13 million, with $11.7 million vesting immediately.

Jordan Wu framed the quarter and outlook around a tighter semiconductor supply environment caused by AI-related demand, saying Himax is facing higher manufacturing and procurement costs, longer lead times, and tougher capacity access. His tone was constructive and confident, emphasizing that pricing actions have already started and that the company is well positioned in automotive, where content per vehicle continues to rise through larger displays, LTDI, HUD, OLED, and local-dimming Tcon. He also stressed that non-driver businesses and new growth areas such as smart glasses, WiseEye AI sensing, and CPO could become increasingly meaningful contributors.

Jessica Pan reported strong Q2 execution with revenue of $227.4 million, gross margin of 33.1%, and EPS of $0.114, all above guidance. She highlighted operating expenses of $15.7 million, cash and other financial assets of $298.7 million, inventory of $151.5 million, receivables of $220.3 million, and capex of $4.3 million. She also noted operating cash flow of $17.5 million, or about $6.5 million excluding a roughly $11.0 million tax deferral under a new Taiwan policy, and said cash should decline in Q3 because of the $44 million annual dividend paid July 10 and the expected $11.7 million immediate vesting of employee bonuses.

Analysts focused heavily on CPO and smart glasses. On CPO, Jordan Wu said meaningful revenue contribution should begin in 2027, with engineering-run shipments already expected to grow through the rest of this year and next year, but he declined to quantify the opportunity or exact mass-production timing. He said Himax and FOCI are focused on validation, yield, and avoiding bottlenecks, and argued the market is large enough for multiple players. On smart glasses, he said WiseEye is seeing strong design momentum, including a recent launch by a leading global brand, but it is still too early to quantify 2027 revenue because customer volume feedback remains limited.