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Universal Display Corp. (OLED - Free Report) reported $152.16 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 11.4%. EPS of $1.06 for the same period compares to $1.41 a year ago.

The reported revenue represents a surprise of -3.93% over the Zacks Consensus Estimate of $158.37 million. With the consensus EPS estimate being $1.04, the EPS surprise was +1.92%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Universal Display performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Material sales: $66.19 million versus $87.29 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -25.3% change.Revenue- Contract research services: $4.75 million versus the three-analyst average estimate of $6.15 million. The reported number represents a year-over-year change of -36.4%.Revenue- Royalty and license fees: $81.21 million versus $64.97 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.3% change.View all Key Company Metrics for Universal Display here>>>

Shares of Universal Display have returned -3.5% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Universal Display Corporation (OLED) Q2 2026 Earnings Call July 30, 2026 5:00 PM EDT

Company Participants

Darice Liu - Senior Director of Investor Relations & Corporate Communications
Steven V. Abramson - President, CEO & Director
Brian Millard - VP, CFO & Treasurer

Conference Call Participants

James Ricchiuti - Needham & Company, LLC, Research Division
Mehdi Hosseini - Susquehanna Financial Group, LLLP, Research Division
Scott Searle - ROTH Capital Partners, LLC, Research Division
Nam Hyung Kim - Arete Research Services LLP
Martin Yang - Oppenheimer & Co. Inc., Research Division

Presentation

Operator

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's Second Quarter 2026 Earnings Conference Call. My name is Sherry, and I will be your conference moderator for today's call. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference call over to Darice Liu, Senior Director of Investor Relations. Please proceed.

Darice Liu
Senior Director of Investor Relations & Corporate Communications

Thank you, and good afternoon, everyone. Welcome to Universal Display's Second Quarter Earnings Conference Call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer; and Brian Millard, Chief Financial Officer and Treasurer.

Before Steve begins, let me remind you that today's call is a property of Universal Display. Any redistribution, retransmission or rebroadcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited. Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, July 30, 2026.

During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number

EWING, N.J.--(BUSINESS WIRE)---- $OLED #OLED--UDC announced a 3Q26 cash dividend of $0.50 per share and that it is payable on September 30, 2026, to shareholders of record on September 16, 2026.

EWING, N.J.--(BUSINESS WIRE)---- $OLED #OLED--UDC today announced that Dr. Julie Brown, Executive Vice President and Chief Technical Officer, has been honored with the IEEE Frederik Philips Award.

Kopin Expands U.S. Operations With New Optics & Photonics Design Center in Dallas, Texas Kopin Corporation (NASDAQ: KOPN) a leading provider of application-specific optical systems and high-performance microdisplays for defense, training, enterprise, industrial, consumer and medical products, today announced plans to open a new Optics and Photonics Design Center in Dallas, Texas, further expanding the company’s U.S.‑based engineering footprint and accelerating development of next‑generation Neural I/o™ technology for the rapidly growing AI infrastructure market.

Scheduled to open before the end of 2026, the Dallas facility will serve as a hub for advanced research, design engineering, and small‑scale manufacturing. The center will include:

New optics and photonics lab space A dedicated design and engineering center Advanced R&D capabilities focused on Neural I/o™ Manufacturing capacity for Neural I/o™ and ASOS systems Expertise across optomechanical, hardware, and software deployment disciplines Located in Dallas — one of the nation’s leading hubs for optical data communication — the new site positions Kopin at the center of a growing ecosystem of high‑performance computing, data transport, and photonics innovation.

Kopin CEO Michael Murray said: “Our expansion into Dallas marks a pivotal step in Kopin’s evolution. Establishing a dedicated Optics and Photonics Design Center in one of the country’s leading hotspots for optical data infrastructure strengthens our domestic engineering capabilities and accelerates our ability to deliver next‑generation Neural I/o™ systems. This new facility enhances our capacity, deepens our expertise, and positions us to rapidly support customer programs across the AI infrastructure landscape. The Dallas center will allow us to rapidly deploy Neural I/o™ and ASOS systems while scaling the design resources needed to meet accelerating demand. It’s a major investment in the future of U.S.‑based innovation — and a testament to the incredible momentum our team is building.”

Josh Silverman, Chief Executive Officer of Fabric.AI, added: "Kopin's investment in a dedicated Dallas design center is exactly the kind of commitment that turns a breakthrough interconnect into a deployable product. The work we're doing together on Neural I/o™ is aimed squarely at the bandwidth and power bottlenecks that define the AI infrastructure buildout, and having advanced optics R&D and manufacturing under one U.S.-based roof lets us move from design to customer deployment far faster. This expansion accelerates our shared roadmap at precisely the moment the market needs it."

The new facility marks another major step in Kopin’s strategy to expand U.S.‑based operations, enhance domestic supply chain resilience, and advance the company’s leadership in next‑generation optical and photonic technologies.

About Kopin

Kopin Corporation (Nasdaq: KOPN) is a leading developer and provider of innovative display, Optical Interconnect devices and application-specific optical solutions sold as critical components and subassemblies for defense, enterprise, professional and consumer products. Kopin’s portfolio includes microdisplays, display modules, eyepiece assemblies, image projection modules and vehicle mounted and head-mounted display systems that incorporate ultra-small high-resolution Active Matrix Liquid Crystal displays (AMLCD), Ferroelectric Liquid Crystal on Silicon (FLCoS) displays, MicroLED displays (µLED) and Organic Light Emitting Diode (OLED) displays, a variety of optics and low-power ASICs and optical interconnect devices for data centers.

For more information, please visit Kopin’s website at www.kopin.com.

Kopin is a trademark of Kopin Corporation.

Follow us on LinkedIn, X and Facebook.

Forward Looking Statements

Statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the safe harbor created by such sections. Words such as “expects,” “believes,” “can,” “will,” “estimates,” and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. We caution readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made, and advise readers that these forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. These forward-looking statements may include statements with respect to our belief that the landmark award accelerates Kopin’s development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality (AR) applications, positioning the company as a cornerstone of America’s defense innovation and domestic manufacturing ecosystem; our belief that by advancing daytime and nighttime readable AR display technology, Kopin is poised to redefine battlefield vision systems, enhancing soldier lethality, situational awareness, and operational effectiveness; our belief that this award solidifies Kopin’s leadership in MicroLED technology and establishing a robust U.S.-based production capability for this critical defense technology; our belief that this award positions Kopin to win future defense programs that rely on full-color MicroLED for next-generation AR systems; our belief that our initiatives create a powerful synergy, positioning Kopin at the forefront of soldier-centric AR innovation; our belief that this award positions Kopin as a frontrunner for future U.S. defense contracts that prioritize advanced AR solutions for enhanced soldier performance; and our belief that this is a transformative moment in Kopin’s history and growth trajectory as this contract and our expectation of follow-on non-dilutive infrastructure investment contracts will be the bedrock which we build the next decade of foundational innovations upon. Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements, including without limitation our ability to produce thermal weapons displays in adequate quantities to meet projected demand, the outcome of any litigation and other factors beyond our control. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany the forward-looking statements. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as may otherwise be required by the federal securities laws. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations are described in Part I, Item 1A. Risk Factors; Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations; and other parts of our Annual Report on Form 10-K, as amended, for the fiscal year ended December 28, 2024, or as updated from time to time our Securities and Exchange Commission filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260623595042/en/

On April 13, 2026, Universal Display Corp OLED shares rose 3.4%, trading at $100.52. The stock has had a mixed performance recently, with a 52-week range between $86.43 and $163.21.

GF Value™ verdict: Current price at $100.52 is 37.1% below the GF Value™ estimate of $159.91. GF Score™: 87/100, indicating strong overall performance. Most notable signal: Financial Strength rated 9/10, reflecting a robust balance sheet. Is OLED Overvalued or Undervalued? The current price of Universal Display Corp OLED at $100.52 is significantly lower than the GF Value™ estimate of $159.91, suggesting that the stock is undervalued by approximately 37.1%. This margin of safety presents a compelling opportunity for those looking to invest in a company with strong fundamentals. The GF Valuation label indicates that OLED is significantly undervalued, which means that the stock could potentially appreciate as the market recognizes its intrinsic value.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation indicates potential, investors should consider market conditions and future earnings growth, which could impact the stock's performance.

How Does OLED's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.8x 33.8x Forward P/E 20.0x N/A Currently, OLED's P/E (TTM) of 19.8x is 41% below its 5-year median P/E of 33.8x, indicating that the stock is trading well below its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that OLED is undervalued in the market relative to its historical performance.

What Does OLED's GF Score™ Tell Us? Metric Rating GF Score™ 87 Financial Strength 9/10 Profitability 9/10 Growth 8/10 Valuation 4/10 Momentum 4/10 Universal Display Corp's GF Score™ of 87/100 indicates strong potential for long-term returns, supported by high scores in Financial Strength (9/10) and Profitability (9/10). The Growth Rank of 8/10 is also commendable, suggesting that the company has solid growth prospects. However, the lower Valuation (4/10) and Momentum (4/10) ranks highlight areas of concern, particularly in terms of market perception and stock performance over recent periods.

What Are Insiders Doing with OLED Stock? There have been no insider transactions reported for Universal Display Corp in the last three months. This lack of insider activity may suggest that insiders have not seen a compelling reason to buy or sell shares recently, which could indicate confidence in the current valuation or a wait-and-see approach regarding future developments.

What This Means for Investors Based on the GF Value™ assessment, Universal Display Corp OLED appears to be undervalued at its current price of $100.52 compared to the intrinsic value estimate of $159.91. The significant undervaluation suggests a potential opportunity for long-term investment, provided that the company can maintain its strong fundamentals and navigate market challenges effectively.

For the complete analysis, visit the Universal Display Corp OLED stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is OLED's GF Score™?

OLED's GF Score™ is 87/100, indicating a strong overall performance and potential for long-term returns.

Is OLED overvalued or undervalued?

OLED is currently undervalued, with a GF Value™ estimate of $159.91 compared to the current price of $100.52.

What is OLED's P/E ratio?

OLED's P/E (TTM) is 19.8x, which is significantly below its 5-year median P/E of 33.8x, indicating the stock is trading at a lower valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Universal Display Corp. (OLED - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis organic light-emitting diode technology company is expected to post quarterly earnings of $1.13 per share in its upcoming report, which represents a year-over-year change of -16.3%.

Revenues are expected to be $155.62 million, down 6.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.94% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Universal Display?For Universal Display, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.76%.

On the other hand, the stock currently carries a Zacks Rank of #5.

So, this combination makes it difficult to conclusively predict that Universal Display will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Universal Display would post earnings of $1.28 per share when it actually produced earnings of $1.39, delivering a surprise of +8.59%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Universal Display doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (Nasdaq: OLED), a global leader in energy-efficient OLED technologies and materials, today reported financial results for the first quarter ended March 31, 2026.

"We continue to see the OLED market as a compelling long-term growth opportunity, supported by expanding adoption, evolving architectures, and continued industry investment,” said Brian Millard, Chief Financial Officer of Universal Display Corporation. “While near-term market conditions have become more measured, we remain focused on execution and long-term value creation. That focus is supported by our deep and long-standing customer partnerships and continued innovation across our materials and technology platforms, which positions us well as the industry enters its next phase of growth, including Gen 8.6 capacity additions in Korea and China expected to come online this year. As this growth unfolds, OLED performance requirements continue to rise and architectures evolve, further increasing the importance of materials innovation. We continue to invest in our technology leadership, while leveraging our strong balance sheet and cash flow generation to support future growth and return capital to shareholders in a disciplined manner."

Financial Highlights for the First Quarter of 2026

Total revenue in the first quarter of 2026 was $142.2 million as compared to $166.3 million in the first quarter of 2025. Revenue from material sales was $83.7 million in the first quarter of 2026 as compared to $86.2 million in the first quarter of 2025. The decrease was primarily due to changes in customer mix and lower unit material volume. Revenue from royalty and license fees was $54.2 million in the first quarter of 2026 as compared to $73.6 million in the first quarter of 2025. The decrease was primarily the result of changes in customer mix and lower unit material volume. While customer mix can vary quarter to quarter, we expect the customer mix in subsequent periods of 2026 to have a more favorable impact on royalty and license fees as compared to the first quarter of the year. Cost of material sales was $33.0 million in the first quarter of 2026 as compared to $33.9 million in the first quarter of 2025. Total gross margin was 75% in the first quarter of 2026 as compared to 77% in the first quarter of 2025. Operating income was $42.8 million in the first quarter of 2026 as compared to $69.7 million in the first quarter of 2025. The effective income tax rate was 20.7% in the first quarter of 2026 as compared to 19.6% in the first quarter of 2025. Net income was $35.9 million or $0.76 per diluted share in the first quarter of 2026 as compared to $64.4 million or $1.35 per diluted share in the first quarter of 2025. Revenue Comparison

($ in thousands)

Three Months Ended March 31,

2026

2025

Material sales

$

83,749

$

86,155

Royalty and license fees

54,210

73,569

Contract research services

4,252

6,553

Total revenue

$

142,211

$

166,277

Cost of Materials Comparison

($ in thousands)

Three Months Ended March 31,

2026

2025

Material sales

$

83,749

$

86,155

Cost of material sales

33,017

33,949

Gross margin on material sales

50,732

52,206

Gross margin as a % of material sales

61

%

61

%

Revised 2026 Guidance

The Company now believes that its 2026 revenue will be in the range of $630 million to $670 million, down from prior guidance of $650 million to $700 million. The OLED industry remains at a stage where many variables can have a material impact on results, and the Company thus caveats its financial guidance accordingly.

Dividend

The Company also announced a second quarter 2026 cash dividend of $0.50 per share on the Company’s common stock. The cash dividend is payable on June 30, 2026 to all shareholders of record as of the close of business on June 16, 2026.

Share Repurchases

The Company repurchased 632,673 shares of common stock for $66.4 million during the three months ended March 31, 2026. During the same period, and inclusive of such purchases, the Company completed the share repurchase program authorized in April 2025, repurchasing a total of 923,883 shares of its common stock for an aggregate purchase price of $100 million.

On April 28, 2026, the Company's Board of Directors authorized management to repurchase up to an additional $400 million of the Company's common stock.

Conference Call Information

In conjunction with this release, Universal Display will host a conference call on Thursday, April 30, 2026 at 5:00 p.m. Eastern Time. The live webcast of the conference call can be accessed under the events page of the Company's Investor Relations website at ir.oled.com. Those wishing to participate in the live call should dial 1-877-524-8416 (toll-free) or 1-412-902-1028. Please dial in 5-10 minutes prior to the scheduled conference call time. An online archive of the webcast will be available within two hours of the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 7,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except share and per share data)

  March 31, 2026

December 31, 2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

159,352

$

138,353

Short-term investments

357,056

464,004

Accounts receivable

93,629

119,953

Inventory

248,213

240,912

Other current assets

74,028

123,836

Total current assets

932,278

1,087,058

PROPERTY AND EQUIPMENT, net of accumulated depreciation of $196,869 and $189,326

213,146

214,947

ACQUIRED TECHNOLOGY, net of accumulated amortization of $225,627 and $220,392

101,548

56,783

OTHER INTANGIBLE ASSETS, net of accumulated amortization of $13,622 and $13,269

3,666

4,019

GOODWILL

15,535

15,535

INVESTMENTS

419,673

377,034

DEFERRED INCOME TAXES

79,455

79,454

OTHER ASSETS

129,415

128,932

TOTAL ASSETS

$

1,894,716

$

1,963,762

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$

17,037

$

23,344

Accrued expenses

40,389

52,564

Deferred revenue

21,038

21,011

Other current liabilities

19,300

11,094

Total current liabilities

97,764

108,013

DEFERRED REVENUE

1,728

1,943

RETIREMENT PLAN BENEFIT LIABILITY

56,911

56,541

OTHER LIABILITIES

34,333

36,246

Total liabilities

190,736

202,743

SHAREHOLDERS’ EQUITY:

Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500)

2

2

Common Stock, par value $0.01 per share, 200,000,000 shares authorized, 49,039,974 and 48,916,606 shares issued, and 46,750,443 and 47,259,748 shares outstanding, at March 31, 2026 and December 31, 2025, respectively

490

489

Additional paid-in capital

745,385

744,692

Retained earnings

1,102,489

1,090,479

Accumulated other comprehensive (loss) income

(2,567

)

781

Treasury stock, at cost (2,289,531 and 1,656,858 shares at March 31, 2026 and December 31, 2025)

(141,819

)

(75,424

)

Total shareholders’ equity

1,703,980

1,761,019

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

1,894,716

$

1,963,762

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in thousands, except share and per share data)

  Three Months Ended March 31,

2026

2025

REVENUE:

Material sales

$

83,749

$

86,155

Royalty and license fees

54,210

73,569

Contract research services

4,252

6,553

Total revenue

142,211

166,277

COST OF SALES

36,121

38,134

Gross margin

106,090

128,143

OPERATING EXPENSES:

Research and development

35,246

34,900

Selling, general and administrative

20,032

17,014

Amortization of acquired technology and other intangible assets

5,588

4,545

Patent costs

2,369

1,906

Royalty and license expense

104

114

Total operating expenses

63,339

58,479

OPERATING INCOME

42,751

69,664

Interest income, net

8,715

10,074

Other (loss) income, net

(6,173

)

378

Interest and other income, net

2,542

10,452

INCOME BEFORE INCOME TAXES

45,293

80,116

INCOME TAX EXPENSE

(9,397

)

(15,672

)

NET INCOME

$

35,896

$

64,444

NET INCOME PER COMMON SHARE:

BASIC

$

0.76

$

1.35

DILUTED

$

0.76

$

1.35

WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE:

BASIC

47,078,940

47,567,295

DILUTED

47,205,952

47,689,657

CASH DIVIDENDS DECLARED PER COMMON SHARE

$

0.50

$

0.45

UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

  Three Months Ended March 31,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

35,896

$

64,444

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

7,563

6,548

Amortization of intangibles

5,588

4,545

Investment losses (gains), net

2,086

(1,471

)

Impairment of minority investments

415

—

Stock-based compensation

7,554

7,076

Deferred income tax expense (benefit)

3

(3,091

)

Retirement plan expense, net of benefit payments

375

423

Decrease (increase) in assets:

Accounts receivable

26,324

(25,915

)

Inventory

(7,301

)

(14,460

)

Other current assets

39,808

400

Other assets

(483

)

(2,568

)

Increase (decrease) in liabilities:

Accounts payable and accrued expenses

(15,362

)

(13,408

)

Other current liabilities

8,291

16,867

Deferred revenue

(188

)

(8,491

)

Other liabilities

(1,693

)

(337

)

Net cash provided by operating activities

108,876

30,562

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment

(8,605

)

(13,059

)

Purchase of intangibles

(40,000

)

—

Purchases of investments

(116,009

)

(38,772

)

Proceeds from sale and maturity of investments

174,483

110,000

Net cash provided by investing activities

9,869

58,169

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock

578

579

Repurchases of common stock

(67,119

)

—

Payment of withholding taxes related to stock-based compensation to employees

(7,738

)

(9,398

)

Cash dividends paid

(23,467

)

(21,419

)

Net cash used in financing activities

(97,746

)

(30,238

)

INCREASE IN CASH AND CASH EQUIVALENTS

20,999

58,493

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

138,353

98,980

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

159,352

$

157,473

SUPPLEMENTAL DISCLOSURES:

Unrealized (loss) gain on available-for-sale securities

$

(3,334

)

$

1,320

Common stock issued to Board of Directors and Scientific Advisory Board that was earned and accrued for in a previous period

300

300

Accrued dividends included in other current liabilities and other liabilities

419

124

Net change in accounts payable and accrued expenses related to purchases of property and equipment

2,843

5,487

Cash paid for income taxes, net of refunds

38,376

2,266

Universal Display Corp. (OLED - Free Report) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -32.59%. A quarter ago, it was expected that this organic light-emitting diode technology company would post earnings of $1.28 per share when it actually produced earnings of $1.39, delivering a surprise of +8.59%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Universal Display, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $142.21 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 8.62%. This compares to year-ago revenues of $166.28 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Universal Display shares have lost about 23.3% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Universal Display?While Universal Display has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Universal Display was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.13 on $164.29 million in revenues for the coming quarter and $4.82 on $675.4 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Components is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Allient (ALNT - Free Report) , is yet to report results for the quarter ended March 2026.

This motion control product maker is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of +19.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Allient's revenues are expected to be $139.83 million, up 5.3% from the year-ago quarter.

Universal Display Corporation (OLED) Q1 2026 Earnings Call Transcript

Key Takeaways OLED Q1 EPS plunged 43.7% and revenues fell 14.5%, both missing expectations.Universal Display saw declines across materials, royalties and research revenue streams.OLED cut 2026 revenue outlook to $630M-$670M due to weak demand and macro pressures. Universal Display Corporation (OLED - Free Report) reported first-quarter 2026 earnings of 76 cents per share, down 43.7% year over year and missing the Zacks Consensus Estimate of $1.13 by 32.7%. Revenues of $142.2 million declined 14.5% year over year and missed the consensus mark of $156 million by 8.6%.

The downside was primarily driven by softer demand conditions, unfavorable customer mix and lower material volumes. Royalty and licensing revenues were notably pressured, reflecting mix shifts and reduced unit activity.

OLED Revenues Decline Across Key StreamsOLED generated total revenues of $142.2 million, down from $166.3 million in the year-ago quarter. The decline was broad-based across its major revenue components.

Material sales slipped 2.8% year over year to $83.7 million, reflecting lower unit volumes and customer mix changes. Meanwhile, royalty and license fees dropped sharply by 26.3% to $54.2 million, driven primarily by shifts in customer purchasing patterns and reduced licensing activity.

Contract research services revenues also declined to $4.3 million from $6.6 million in the prior-year quarter. The overall revenue mix reflected a material-to-license ratio of roughly 1.5:1 during the period, influenced by customer ordering patterns.

Universal Display Margins Contract on Mix, CostsGross margin narrowed to 75% from 77% in the year-ago quarter, reflecting higher input costs and unfavorable product mix. Cost of sales declined modestly to $36.1 million, but did not offset revenue pressure.

Operating expenses increased to $63.3 million from $58.5 million a year earlier, driven by higher selling, general and administrative expenses and increased amortization.

As a result, operating income declined significantly to $42.8 million from $69.7 million, with operating margin contracting to about 30% from roughly 42% in the prior-year period.

OLED Profitability Impacted by Non-Operating ItemsNet income fell to $35.9 million from $64.4 million in the prior-year quarter. The decline reflects lower operating income and unfavorable non-operating items.

The company reported non-operating losses driven by foreign exchange impacts and investment-related losses, including currency fluctuations tied to the Korean won and equity investment write-downs.

The effective tax rate for the quarter was approximately 20.7%, slightly higher than 19.6% in the prior-year period.

Universal Display Cash Flow and Capital AllocationUniversal Display generated a strong operating cash flow of $108.9 million during the quarter, up significantly from $30.6 million in the prior-year period.

The company ended the quarter with $159.4 million in cash and cash equivalents and substantial investment holdings, supporting its liquidity position.

 During the quarter, OLED repurchased approximately 632,673 shares for $66.4 million and completed its prior $100 million buyback authorization. It also declared a quarterly dividend of 50 cents per share and authorized a new $400 million share repurchase program, reflecting continued capital return priorities.

OLED Outlook Reflects Near-Term UncertaintyManagement highlighted a more challenging near-term demand environment, citing macroeconomic pressures, higher component costs and supply constraints affecting visibility across the consumer electronics value chain.

Given these conditions, the company lowered its full-year 2026 revenue guidance to a range of $630 million to $670 million from the prior $650 million to $700 million outlook.

 Despite near-term headwinds, OLED expects sequential improvement in the second quarter and a stronger second half of the year, supported by normalization in customer mix and ongoing OLED adoption across end markets.

OLED’s Zacks RankUpcoming ReleasesArista Networks Inc. (ANET - Free Report) is scheduled to release first-quarter 2026 earnings on May 5. The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, suggesting growth of 24.6% from the year-ago reported figure.

Arista has a long-term earnings growth expectation of 17.9%. Arista delivered an average earnings surprise of 9% in the last four reported quarters.

Akamai Technologies, Inc. (AKAM - Free Report) is slated to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $1.61 per share, indicating a 5.3% decline from the year-ago reported figure.

Akamai has a long-term earnings growth expectation of 7%. Akamai delivered an average earnings surprise of 9.4% in the last four reported quarters.

Pinterest, Inc. (PINS - Free Report) is set to release first-quarter 2026 earnings on May 4. The Zacks Consensus Estimate for earnings is pegged at 22 cents per share, implying a fall of 4.3% from the year-ago reported figure.

Pinterest has a long-term earnings growth expectation of 24.5%. Pinterest delivered an average negative earnings surprise of 3.6% in the last four reported quarters.

EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (Nasdaq: OLED), a global leader in energy-efficient OLED technologies and materials, today announced its participation in the following investor and industry conferences:

Investor Conference:

Bank of America Global Technology Conference 2026
Date: June 3, 2026
Location: San Francisco, CA
Company Representative: Brian Millard, Chief Financial Officer

Industry Conferences:

Society for Information Display (SID) Display Week 2026
Date: May 3-8, 2026
Location: Los Angeles, CA
Presenters: Multiple
Learn More: Universal Display Corporation to Present High-Efficiency Blue Paper and Showcase OLED Technology Advancements at SID Display Week 2026

University of Delaware Department of Chemistry Invited Seminar
Date: May 6, 2026
Location: Newark, DE
Presenter: Dr. Charles J. Stanton III, Senior R&D Manager of Chemistry Discovery Research
Presentation Title: Energizing the Next Wave of OLED Growth through Chemistry and Scientific Leadership

International Conference on Electroluminescence and Optoelectronic Devices (ICEL 2026)
Date: May 10, 2026
Location: Namur, Belgium
Presenter: Dr. Michael Fusella, Principal Research Scientist
Presentation Title: Plasmonic OLED: Enabling Next-Generation OLED Displays

Frontiers in Digital Chemistry
Date: June 10, 2026
Location: New York City, NY
Presenter: Dr. George Fitzgerald, Senior Director of Computational Chemistry
Presentation Title: From Algorithms to Illumination: Advancing OLEDs with Molecular Modeling and Machine Learning

TechBlick 2026
Date: June 11, 2026
Location: Mountain View, CA
Presenter: Dr. Mike Hack, Vice President of Business Development
Presentation Title: Universal Vapor Jet Printing (UVJP)—A Transformative Dry, Solvent-Free Printing and Deposition Technology

16th International Conference on Metamaterials, Photonic Crystals and Plasmonics (META 2026)
Date: July 15, 2026
Location: Dublin, Ireland
Presenter: Dr. Haridas Mundoor, Senior Research Scientist
Presentation Title: Plasmonically Powered Organic Light Emitting Devices for Advanced Display Applications

Gordon Research Conference: Heterocyclic Compounds
Date: June 17, 2026
Location: Newport, RI
Presenter: Dr. Alex Dyatkin, Principal Research Scientist
Presentation Title: Phosphorescent OLED Technology: Materials, Device Architectures, and Manufacturing

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 7,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results and future declaration of dividends, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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On May 22, 2026, Universal Display Corp OLED shares rose 3.1% to $94.31. The stock has experienced a volatile year, with a 52-week range between $83.64 and $163.21.

GF Value™ verdict: The current price of $94.31 is 38.2% below the GF Value™ estimate of $152.63.GF Score™: With a score of 85/100, OLED is rated as a strong investment opportunity.Notable signal: Insiders have purchased $1.5 million worth of stock in the last three months, indicating confidence in the company's future. Is OLED Overvalued or Undervalued? The current price of Universal Display Corp OLED at $94.31 indicates a significant undervaluation when compared to the GF Value™ estimate of $152.63. This represents a margin of safety of 38.2%, suggesting that the shares may present a compelling opportunity for long-term investors. The classification of "Significantly Undervalued" by GF Valuation indicates that the stock price does not reflect the company's true intrinsic value. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation points to a potential opportunity, investors should consider the inherent risks associated with market fluctuations and company-specific factors that may impact future profitability. The significant difference between the current market price and the GF Value™ could lead to a correction in either direction, depending on market sentiment and operational performance.

How Does OLED's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.1x 33.2x Forward P/E 22.3x N/A Currently, OLED's P/E ratio of 21.1x is substantially below its 5-year median P/E of 33.2x, indicating that the stock is trading at a lower valuation compared to its historical performance. This analysis aligns with the GF Value™ verdict, reinforcing the notion that OLED is currently undervalued relative to its historical valuation metrics.

What Does OLED's GF Score™ Tell Us? Metric Rating GF Score™ 85/100 Financial Strength 8/10 Profitability 9/10 Growth 8/10 Valuation 4/10 Momentum 4/10 OLED's GF Score™ of 85/100 indicates a strong overall position, with particularly high ratings in Profitability (9/10) and Financial Strength (8/10). However, the lower ratings in Valuation (4/10) and Momentum (4/10) suggest that, while the company is financially robust, there may be concerns regarding its current market momentum and valuation compared to historical averages.

What Are Insiders Doing with OLED Stock? Recent insider activity for Universal Display Corp has shown a positive trend, with insiders purchasing a total of $1.5 million worth of shares over the last three months. This buying spree suggests that those closest to the company believe in its future prospects and are willing to invest their own funds. There has been no selling activity reported, further indicating confidence among insiders regarding the company's direction.

What This Means for Investors Based on the analysis of GF Value™, Universal Display Corp OLED is currently considered undervalued. With a significant margin of safety and strong GF Score™, the stock presents potential opportunities for thoughtful investors, despite recent volatility in its price performance.

For the complete analysis, visit the Universal Display Corp OLED stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is OLED's GF Score™?

OLED has a GF Score™ of 85/100, indicating a strong overall investment potential based on key financial metrics and performance indicators.

Is OLED overvalued or undervalued?

OLED is considered undervalued, with a current price of $94.31 sitting 38.2% below the GF Value™ estimate of $152.63.

What is OLED's P/E ratio?

OLED's P/E (TTM) ratio is 21.1x, which is significantly below its 5-year median P/E of 33.2x, indicating a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Universal Display Corporation Expands China Presence with Grand Opening of Chengdu OLED Technology and Innovation Center Universal Display Corporation (UDC) (Nasdaq: OLED), a global leader in energy-efficient OLED technologies and materials, today announced the grand opening of its OLED Technology and Innovation Center in Chengdu, China. The opening event brought together company leaders, customers, partners, and local representatives to mark UDC’s continued expansion in the region and its commitment to supporting the next phase of OLED innovation.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260602647143/en/

Ribbon-Cutting Ceremony at UDC Chengdu OLED Technology and Innovation Center. (From left to right, General Manager of UDC China, Mr. Yeyun Dou, General Manager of CSO Organization, BOE, Mr. Xiangdong Qin, Senior Vice President of BOE, Mr. Xiangnan Yun, Chief Executive Officer of UDC, Mr. Steven V. Abramson, Executive Vice President and Chief Technical Officer of UDC, Dr. Julie Brown, Deputy Secretary General of CODA LCD Branch, Mr. Chunming Hu, General Manager of UDC Chengdu, Mr. Hao Ye)

Located in one of China’s leading OLED manufacturing hubs, the Chengdu facility features state-of-the-art laboratories and a dedicated customer support center. The site is designed to support materials characterization, device optimization and application development, strengthening UDC’s ability to engage more closely across the development cycle and enabling closer alignment with customers’ evolving specifications. This expanded footprint reflects the Company’s long-term investment in the region and its role within the broader OLED ecosystem.

“The opening of our Chengdu OLED Technology and Innovation Center marks an important milestone in our continued growth in China and reinforces our long-term commitment to our customers and partners,” said Steven V. Abramson, President and Chief Executive Officer of Universal Display Corporation. “As a leader in OLED technologies and phosphorescent materials, we are expanding our presence in the region to foster greater collaboration, provide more direct, hands-on support while advancing the development of next-generation high-performance, energy-efficient and sustainable displays and lighting.”

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. Founded in 1994 and with subsidiaries and offices around the world, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 7,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training. To learn more about Universal Display Corporation, please visit https://oled.com/.

Universal Display Corporation and the Universal Display Corporation logo are trademarks or registered trademarks of Universal Display Corporation. All other Company, brand or product names may be trademarks or registered trademarks.

All statements in this document that are not historical, such as those relating to the projected adoption, development and advancement of the Company’s technologies, and the Company’s expected results, as well as the growth of the OLED market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this document, as they reflect Universal Display Corporation’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20260602647143/en/