Universal Display Announces 1Q 2026 Financial Results

Universal Display Corporation 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, CFO 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,” Millard added. “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, the company expects 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.

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.

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.

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.