Universal Display Q3 Revenue Jumps 15% to $160.4M, EPS Nearly Doubles on Investment Gain
OLED sits 30% above its 52-week low of $70.77.
Summary
Universal Display reported Q3 revenue of $160.4 million, up 15% from a year ago, and GAAP EPS of $1.72 that was boosted by a $28.9 million investment gain; adjusted EPS was $1.23. Guidance was held at the low end of $630-$670 million and buybacks continued at $78.8 million for the quarter.
Key Events · Earnings and Guidance · OLED
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Q3 Revenue Up 15% to $160.4M
Total revenue was $160.4 million versus $139.6 million in Q3 2025, driven by royalty and license fees of $75.5 million (up from $53.3 million) while material sales slipped to $79.7 million from $82.6 million.
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EPS Boosted by Non-Operating Gain
Net income was $78.9 million, or $1.72 per diluted share, versus $44.0 million, or $0.92; excluding a $28.9 million UDC Ventures investment gain and related tax, adjusted net income was $56.2 million, or $1.23 per share.
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Material Margins Compress
Total gross margin fell to 73% from 75%, and gross margin on material sales dropped to 50% from 60% as cost of material sales rose to $39.6 million from $32.8 million.
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Guidance Held at Low End
The company continues to expect 2026 revenue around the lower end of its $630 million to $670 million range, unchanged from the July update.
Analysis · OLED · Manufacturing
Revenue rose 15% year over year to $160.4 million, but the headline EPS gain is mostly accounting: $28.9 million of the $78.9 million net income came from marking up a UDC Ventures investment, and adjusted EPS was $1.23 versus $0.92 GAAP. The core business is mixed — material sales fell to $79.7 million from $82.6 million and material gross margin dropped to 50% from 60%, while royalty and license fees jumped to $75.5 million from $53.3 million partly because last year's quarter absorbed a $9.5 million out-of-period adjustment. Guidance was only reaffirmed at the low end of $630-$670 million, so the quarter does not change the weak-demand story from July. The company kept buying back stock aggressively — 963,333 shares for $78.8 million in the quarter — which supports EPS but shrinks the cash pile to $93.4 million.
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At the time of this filing, OLED was trading at $91.93 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $70.77 to $152.24. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.