Earnings

Universal Display Posts $1.72 A Share, Helped By A $28.9 Million Gain, And Keeps Revenue Outlook At Low End

Third-quarter revenue rose to $160.4 million, but nine-month sales trail last year and the 2026 forecast sits near the bottom of its range.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Universal Display Posts $1.72 A Share, Helped By A $28.9 Million Gain, And Keeps Revenue Outlook At Low End

Universal Display, which develops OLED technologies and materials, reported third-quarter net income of $78.9 million, or $1.72 per diluted share, up from $44.0 million, or $0.92, a year earlier, and said 2026 revenue should land around the lower end of its $630 million to $670 million guidance. A $28.9 million gain on a UDC Ventures investment flattered the quarter; without it and related tax expense, adjusted net income was $56.2 million, or $1.23 per share.

Royalties carry the quarter

Total revenue rose to $160.4 million from $139.6 million in the third quarter of 2025. Royalty and license fees climbed to $75.5 million from $53.3 million, helped by higher unit material volume, customer mix and a $9.5 million out-of-period adjustment that had reduced the prior-year figure.

Material sales slipped to $79.7 million from $82.6 million, which the company attributed to customer mix and a $4.8 million unfavorable swing in a cumulative catch-up adjustment, partly offset by higher volume. Gross margin on material sales fell to 50% from 60%, and total gross margin was 73% versus 75%. Operating income rose to $53.7 million from $43.1 million.

Other income was $37.3 million against $952,000 a year ago, driven by the $28.9 million investment gain and a $7.2 million foreign currency gain on a Korean won tax receivable.

Nine months still trail last year

For the first nine months, revenue was $454.8 million versus $477.7 million, and net income was $164.3 million, or $3.52 per diluted share, against $175.7 million, or $3.68. Adjusted net income for the period was $141.5 million, or $3.04 per share. Operating income fell to $150.1 million from $181.3 million.

The company said it still believes 2026 revenue will be around the lower end of its previous range of $630 million to $670 million. Net cash from operating activities in the nine months was $234.1 million, up from $179.7 million.

Buybacks and a $0.50 dividend

Universal Display bought back 963,333 shares for $78.8 million in the third quarter and 2,127,217 shares for $192.9 million in the nine months. That included finishing a $100 million program begun in April 2025 and purchases under an additional $400 million program the board authorized in April 2026.

The board declared a fourth-quarter dividend of $0.50 per share, payable December 31 to holders of record on December 17.

The company does not make OLED displays itself. It sells phosphorescent emitter materials and licenses patents to display makers. Chief Financial Officer Brian Millard said the quarter brought progress across its innovation portfolio, including the introduction of OLED X and the launch of UVJC's first equipment platform. Management hosts a call Wednesday at 5:00 p.m. Eastern.

Universal Display's market value was $4.2 billion as of the Wednesday report.

Sources

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