Himax Technologies (HIMX) stock plunged 7.27% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results and fourth-quarter guidance, both of which fell short of investor expectations. The semiconductor company's underwhelming performance and cautious outlook have sparked concern among investors, leading to a significant sell-off.

For Q3 2025, Himax reported net revenues of $199.2 million, down from $222.4 million in the same quarter last year, representing a sequential decline of 7.3%. While this outperformed the company's previous guidance of a 12.0% to 17.0% decline, it still marked a substantial year-over-year drop. Earnings per diluted American Depository Share (ADS) came in at just $0.006, significantly lower than the $0.074 reported in the same quarter last year. The company's large display driver segment, a key revenue source, saw a substantial 23.6% quarter-over-quarter decline to $19.0 million, further dampening investor sentiment.

Adding to the negative sentiment, Himax's outlook for Q4 2025 failed to inspire confidence. The company expects revenues to remain flat or slightly up compared to Q3, with projected earnings per diluted ADS in the range of $0.02 to $0.04. This guidance falls significantly short of the $0.08 per share that analysts were anticipating. Despite management's optimism about the company's automotive business outlook and expansion into areas like ultralow power AI and smart glasses, the market's immediate reaction suggests skepticism about Himax's near-term growth prospects. The combination of weak Q3 results and disappointing Q4 guidance has led to the sharp pre-market decline in Himax's stock price.