The revenue miss and narrowed guidance to the low end of the range suggest underlying OLED material demand is softening despite a one-time royalty catch-up. Watch for further guidance cuts if material sales continue to decline and for any updates on Gen 8.6 capacity ramp in Korea and China.
Price Chart
Executive Summary
Universal Display reported Q3 2026 revenue of $160.4M, up 14.9% YoY from $139.6M, and GAAP EPS of $1.72, up from $0.92 YoY. The beat was driven by a sharp increase in royalty and license fees ($75.5M vs $53.3M) and a $28.9M venture investment gain. However, the company narrowed its 2026 revenue guidance to the lower end of the $630M-$670M range, implying a weaker H2 outlook. Material sales declined 3.5% YoY, and gross margin contracted to 73% from 75%.
Key Financial Metrics
Key Facts
- Q3 2026 total revenue $160.4M vs $139.6M YoY (+14.9%)
- GAAP diluted EPS $1.72 vs $0.92 YoY
- Non-GAAP adjusted diluted EPS $1.23 (excludes $28.9M venture gain)
- Royalty and license fees $75.5M vs $53.3M YoY (+41.6%)
- Material sales $79.7M vs $82.6M YoY (-3.5%)
- Total gross margin 73% vs 75% YoY
- Operating income $53.7M vs $43.1M YoY (+24.5%)
- 2026 revenue guidance narrowed to lower end of $630M-$670M range
- Quarterly dividend maintained at $0.50 per share
- Repurchased 963,333 shares for $78.8M in Q3
Financial Impact
Revenue beat consensus of $162.7M by -1.4% (miss); GAAP EPS $1.72 vs consensus $1.14 (beat on GAAP basis, but Street basis is GAAP for this issuer; the $1.72 includes a $0.49 non-recurring venture gain). Non-GAAP adjusted EPS of $1.23 is closer to the $1.14 consensus but still a beat.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Material sales | $79.7M | -3.5% |
| Royalty and license fees | $75.5M | +41.6% |
| Contract research services | $5.2M | +42.8% |
Risk Factors
- Material sales declining YoY for three consecutive quarters
- Gross margin compression from 75% to 73%
- 2026 revenue guidance narrowed to lower end of $630M-$670M
- Q3 results boosted by $28.9M non-recurring venture gain and $9.5M out-of-period royalty adjustment
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-436136 |
| Document: oled-20261028.htm | 0001193125-26-436136 |
| Document: 0001193125-26-436136-index-headers.html | 0001193125-26-436136 |
| Document: 0001193125-26-436136-index.html | 0001193125-26-436136 |
| Document: 0001193125-26-436136.txt | 0001193125-26-436136 |
| 8-K Data (Synthetic) | 0001193125-26-436136 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 today | SC 13G | $83.57 | awaiting T+20 | awaiting T+20 | $83.92 (+0.42%) |
Oct 28, 2026 2d ago | 8-K | $84.90 | awaiting T+20 | awaiting T+20 | $83.92 (−1.15%) |
May 7, 2026 25w ago | Insider Cluster | $92.66 $90.84 | ▼ −1.96% | ▼ −5.10% | $83.92 (−9.43%) |
May 7, 2026 25w ago | Insider Cluster | $92.66 $90.84 | ▼ −1.96% | ▼ −5.10% | $83.92 (−9.43%) |
Apr 23, 2026 27w ago | DEFA14A | $98.99 $91.57 | ▼ −7.49% | ▼ −11.52% | $83.92 (−15.22%) |
US Market Status
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