Himax’s Q4 Earnings Call: Our Top 5 Analyst Questions

Himax’s Q4 Earnings Call: Our Top 5 Analyst Questions

Adam Hejl

Thu, February 19, 2026 at 2:38 PM GMT+9 4 min read

In this article:

HIMX

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Himax’s fourth quarter saw revenue decline year-over-year, but the company managed to slightly exceed Wall Street’s expectations for sales while delivering profit in line with consensus. The market responded negatively, reflecting concerns over ongoing margin pressures and inventory build. Management attributed the quarter’s performance to resilient growth in automotive display ICs, successful ramp-up of new non-driver products, and a notable uptick in legacy TV and notebook IC orders. CEO Jordan Wu emphasized the company’s leadership in automotive TCON and highlighted the sequential revenue gains from large display drivers and non-driver segments as partial offsets to continued softness in consumer electronics.

Is now the time to buy HIMX? Find out in our full research report (it’s free).

Himax (HIMX) Q4 CY2025 Highlights:

**Revenue:** $203.1 million vs analyst estimates of $199.2 million (14.4% year-on-year decline, 2% beat)

**Adjusted EPS:** $0.04 vs analyst estimates of $0.03 (in line)

**Adjusted EBITDA:** $13.69 million (6.7% margin, 1% year-on-year decline)

**Operating Margin:** 3.4%, down from 9.7% in the same quarter last year

**Inventory Days Outstanding:** 98, up from 90 in the previous quarter

**Market Capitalization:** $1.31 billion

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Himax’s Q4 Earnings Call

**Tiffany Chen (Morgan Stanley)** asked about gross margin outlook for Q1. CEO Jordan Wu explained that product mix changes—specifically, a lower proportion of automotive shipments—are the primary driver, with material cost increases expected to impact margins more in subsequent quarters.

**Tiffany Chen (Morgan Stanley)** followed up on CPO (co-packaged optics) revenue expectations. Wu said 2026 will focus on validation and sample shipments, with significant revenue possible from 2027 as mass production ramps, but full timing depends on customer decisions.

**Online inquiry** questioned the outlook for OLED product margins. Wu clarified that smartphone OLED margins are below corporate average due to competition, while automotive and IT OLED ICs offer higher margins and greater per-panel content, with major growth expected in 2027.

**Online inquiry** inquired about OLED sales ramp. Wu detailed that 2026 OLED revenue contribution will remain under 10% of sales, with the real ramp anticipated for 2027 as new manufacturing lines come online and costs decline, especially for automotive and IT applications.

**No further analyst questions on the call.**

 






Story Continues  

Catalysts in Upcoming Quarters

Looking ahead, our analysts will monitor (1) the pace at which new automotive and AI-driven projects enter mass production, (2) management’s ability to navigate supply chain cost pressures and negotiate possible product price adjustments, and (3) ongoing progress in non-driver product segments like TCON and WiseEye AI. The timing of CPO and OLED adoption in automotive and IT will also serve as important signposts for long-term growth.

Himax currently trades at $7.52, down from $8.25 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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