Abstract

Himax will release its Q4 2025 results on February 12, 2026 Pre-Market.

Market Forecast

Based on Himax’s previous report and the latest forecast dataset, current-quarter revenue is projected at $199.20 million, with an estimated adjusted EPS of $0.04, and estimated EBIT of $4.13 million; year-over-year changes implied by the dataset point to revenue down 9.52%, EPS down 65.00%, and EBIT down 75.25%. The dataset does not include explicit gross profit margin or net margin guidance for the current quarter, so these are omitted. The main business remains concentrated in third-party shipments estimated near $199.14 million, while affiliated-party revenue is negligible. The most promising segment by revenue scale is the third-party channel at $199.14 million, though the YoY trend is negative per the estimate.

Last Quarter Review

Himax’s last quarter delivered revenue of $199.16 million, a gross profit margin of 30.18%, GAAP net profit attributable to the parent company of $1.07 million, a net profit margin of 0.54%, and adjusted EPS of $0.01; year-over-year changes showed revenue down 10.45% and EPS down 91.89%. Quarter-on-quarter change in net profit was -93.53%, reflecting a sharp sequential drop as pricing and mix pressures persisted in display-driver shipments. Main business highlights: third-party revenue was $199.14 million and affiliated-party revenue was $0.02 million, with overall revenue down 10.45% year-over-year.

Current Quarter Outlook

Main Business: Display Drivers and Third-Party Shipments

The core of Himax’s business is the sale of display driver ICs and related solutions via third-party channels, which accounted for $199.14 million last quarter and is projected at $199.20 million this quarter. The sequential stability of revenue suggests inventory normalization among panel customers even as end-market demand remains uneven. Pricing remains a swing factor; with panel makers prioritizing utilization, Himax’s blended ASPs can face pressure, which moderates margin recovery. Operationally, management emphasis on tighter cost control and disciplined shipment pacing should help keep gross margin around the recent 30.18% level, but without explicit guidance the margin trajectory will be influenced by the product mix between large-display, smartphone, and automotive DDICs.

Most Promising Business: Automotive and TDDI Solutions

Among Himax’s offerings, automotive drivers and TDDI solutions are positioned to be more resilient relative to consumer devices, benefiting from multi-year design wins. While segment-level revenue was not broken out in the dataset, the third-party channel captures the bulk of these shipments and supports the $199.14 million base. The automotive content per vehicle is increasing, which can gradually lift average selling prices and margin mix, but the pace depends on OEM production schedules and program ramps. For TDDI, demand correlates with smartphone refresh cycles; in quarters with softer handset sell-through, TDDI orders can be deferred, creating volatility in quarterly revenue yet offering margin leverage when volumes return.

Key Stock Price Drivers This Quarter

Near-term stock performance will be shaped by revenue delivery versus the $199.20 million estimate and the ability to protect margins in the face of mid-to-high single-digit YoY revenue decline. EPS sensitivity is high given the small EBIT base of $4.13 million and prior-quarter net margin of 0.54%; modest gross margin compression could turn profit metrics volatile. Investors will watch inventory commentary and order visibility across panel and automotive customers, as well as any color on second-half product launches that could stabilize TDDI demand. Cash discipline and operating expense control may act as a partial offset to pricing pressures, supporting EPS near the estimated $0.04 level.

Analyst Opinions

The majority of recent institutional commentary trends cautious, highlighting muted end-market demand, inventory digestion, and margin sensitivity in consumer display drivers. Publications point to limited upside catalysts in the near term and expect earnings to track the conservative guidance implied by the dataset: revenue at $199.20 million with EPS near $0.04. Consensus notes that automotive exposure should provide some stabilization, but the overall tone suggests a balanced-to-bearish stance pending clearer signs of demand recovery in smartphones and large-display categories. As such, the majority view anticipates pressure on YoY comparisons and looks for management to emphasize cost control and mix improvements to sustain profitability through the current softness.