Key Highlights

  • Consensus EPS of 1.13 compares with second-quarter diluted EPS of 1.06, against 1.41 a year earlier.
  • Consensus revenue of USD 162.72 million compares with second-quarter revenue of USD 152,157 thousand, against USD 171,794 thousand.
  • Management put 2026 revenue at the lower end of its USD 630 million to USD 670 million range.
  • Material sales were USD 66.2 million against USD 88.7 million, while royalty and license fees were USD 81.2 million.

Universal Display (NASDAQ:OLED) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.13 on revenue of USD 162.72 million, and the company has a market capitalization of USD 4.07 billion.

Universal Display supplies phosphorescent OLED materials and licenses OLED technology to display makers. Second-quarter revenue was USD 152,157 thousand against USD 171,794 thousand, and net income was USD 49,421 thousand against USD 67,264 thousand.

Estimates Against Second-Quarter Results and 2026 Guidance

The EPS estimate of 1.13 is above the second-quarter diluted EPS of 1.06, which compared with 1.41 a year earlier, and the estimates table does not state its EPS basis. The revenue estimate of USD 162.72 million is above the USD 152,157 thousand reported.

Management updated its 2026 revenue view to the lower end of the USD 630 million to USD 670 million range, citing limited visibility in consumer electronics and restrained customer demand.

What Management Guided and What It Left Open

Management said second-half revenue exceeds first-half revenue on product launch cycles in the third quarter and early 2027, and that full-year operating expenses rise by a low single-digit percentage. It guided total gross margin of 74% to 76% and an average material sales to royalty ratio of about 1.2 to 1.

Management left open smartphone demand, citing rising memory costs and supply constraints, and said customer forecasts became more conservative. It also noted a USD 7 million materials margin anomaly in the second quarter.

Materials, Royalties and Margin Detail

Material sales fell 25%, with unit material volume down 11%. Green emitter sales were USD 50.9 million against USD 63.6 million, and red emitter sales were USD 15.1 million against USD 23.9 million. Royalty and license fees rose 7%, aided by cumulative catch-up adjustments of about USD 10 million.

Gross profit was USD 115,367 thousand against USD 132,591 thousand, a 76% gross margin. Operating expenses were USD 61,719 thousand, and operating income was USD 53,648 thousand against USD 68,540 thousand, a 35% margin. Basic EPS was 1.06 against 1.41, and income before income taxes was USD 61,004 thousand against USD 83,878 thousand. Adhesives revenue was USD 4.8 million against USD 7.5 million.

Cash, Buybacks and Dividend

The company held about USD 855 million in cash, cash equivalents and investments and repurchased 531,000 shares for about USD 48 million. It returned more than USD 238 million through dividends and buybacks over twelve months.

The board declared a third-quarter dividend of 0.50 per share against 0.45. The effective tax rate was about 19%, and OLED penetration in smartphones is about 65%. The estimates table lists a market capitalization of USD 4.07 billion.

Figures to Follow in the Release

Reported EPS against 1.13 and revenue against USD 162.72 million are the headline comparisons. Other markers are material volumes, royalty catch-up adjustments and the 2026 revenue range.