Universal Display tops Q3 profit estimates, misses on revenue

Universal Display Corporation (Nasdaq: OLED) topped third-quarter profit estimates but missed on revenue, the company said on Oct. 28, 2026 in a press release furnished with an 8-K filing.

Adjusted earnings were $1.23 per diluted share, against the $1.15 consensus estimate compiled by Finnhub. Revenue was $160.43 million, missing the $165.97 million estimate.

Universal Display Corporation is a leader in OLED technologies and materials for display and solid-state lighting. It owns, exclusively licenses or has the sole right to sublicense more than 7,000 patents issued and pending worldwide.

Here's how the company did:

• Revenue: $160.43 million vs. $139.61 million a year earlier
• Adjusted EPS: $1.23 vs. $1.15 expected, according to Finnhub, and $0.92 a year earlier
• GAAP net income: $78.9 million, or $1.72 per diluted share, vs. $44.0 million, or $0.92 per diluted share
• Operating income: $53.7 million vs. $43.1 million
• Gross margin: 73% vs. 75%

The adjusted figures exclude a $28.9 million gain on a UDC Ventures investment and the related income tax expense. Excluding those items, adjusted net income was $56.2 million.

Other income, net was $37.3 million, compared with $952,000 a year earlier. The filing attributes it mainly to the UDC Ventures gain and a $7.2 million foreign currency gain on a tax receivable denominated in Korean won.

Royalty and license fees rose to $75.5 million from $53.3 million. The filing says the increase came mainly from higher unit material volume, changes in customer mix and a $9.5 million out-of-period adjustment that reduced prior-year royalty and license fees revenue.

Material sales fell to $79.7 million from $82.6 million. The filing attributes the decline mainly to changes in customer mix and a $4.8 million unfavorable period-over-period change in the cumulative catch-up adjustment, partly offset by higher unit material volume.

Chief Financial Officer Brian Millard said the quarter’s progress “reinforce[s]” the company’s outlook, adding that the results “reinforce our confidence in the long-term opportunities for our technologies and the value we believe they can create for customers and shareholders.”

Nine-month results

Total revenue for the first nine months of 2026 was $454.8 million, compared with $477.7 million in the same period of 2025. Net income was $164.3 million, or $3.52 per diluted share, against $175.7 million, or $3.68 per diluted share, a year earlier.

Adjusted net income for the nine months was $141.5 million, or $3.04 per diluted share, according to the filing.

2026 guidance

The company said it continues to believe its 2026 revenue will be around the lower end of its previous guidance range of $630 million to $670 million. The company gave the same outlook in its July 30 results release.

Share repurchases and dividend

The company repurchased 963,333 shares for $78.8 million in the third quarter, and 2,127,217 shares for $192.9 million in the first nine months, according to the filing. The purchases included completion of a $100 million program that began in April 2025, as well as purchases under a $400 million program the board authorized in April 2026.

The company also announced a fourth-quarter 2026 cash dividend of 50 cents per share, payable Dec. 31, 2026 to shareholders of record at the close of business on Dec. 17, 2026. It declared 45 cents per share a year earlier.