Universal Display (NASDAQ:OLED) Releases Earnings Results

Universal Display (NASDAQ:OLED) announced its quarterly earnings data on Thursday. The semiconductor company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.11, FiscalAI reports. The company had revenue of $172.93 million for the quarter, compared to analyst estimates of $173.35 million. Universal Display had a return on equity of 14.19% and a net margin of 37.21%.Universal Display’s revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.22 EPS.

Here are the key takeaways from Universal Display’s conference call:

• Universal Display reported record 2025 revenue of $651 million, operating income of $249 million, net income of $242 million ($5.08 per diluted share), and ended the year with $955 million in cash, cash equivalents, and investments.
• 2026 guidance calls for revenue of $650–$700 million (midpoint ~4% growth) with expected gross margins of 74%–76% and operating margins of 34%–37%, citing higher raw material costs as a headwind.
• Management highlighted progress and multi-customer engagement on phosphorescent blue, which could boost panel energy efficiency up to 25%, but blue-related development revenue remains small (~$4.3M in 2025) and commercialization timing is uncertain.
• The company expects a multi-year demand runway as new capacity comes online (notably first mass production from Gen 8.6 fabs at Samsung Display and BOE in 2026) and Omdia forecasts strong growth in IT, automotive, and foldable OLED shipments through 2030.
• Universal Display continued returning capital to shareholders—repurchasing ~454,000 shares for $53 million recently and increasing the quarterly cash dividend to $0.50 per share—totaling ~ $139 million returned over the last 12 months.

Universal Display Stock Down 11.1%

Shares of Universal Display stock opened at $104.07 on Friday. Universal Display has a 12-month low of $103.35 and a 12-month high of $164.29. The stock has a market capitalization of $4.95 billion, a P/E ratio of 20.53, a price-to-earnings-growth ratio of 3.29 and a beta of 1.63. The company has a 50-day simple moving average of $119.79 and a 200 day simple moving average of $130.44.

Universal Display Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Universal Display’s previous quarterly dividend of $0.45. Universal Display’s payout ratio is currently 35.50%.

Trending Headlines about Universal Display

Here are the key news stories impacting Universal Display this week:

• Positive Sentiment: Q4 EPS beat and revenue growth — OLED reported $1.39 EPS vs. $1.28 expected and revenue of ~$173M, up 6.5% year-over-year, driven by strong material sales and royalties. OLED’s Q4 Earnings Beat Estimates, Revenues Rise Y/Y
• Positive Sentiment: Dividend increase — UDC raised its quarterly cash dividend to $0.50/share (11.1% increase), which supports yield and shareholder return expectations. Universal Display Corporation Increases Quarterly Cash Dividend to $0.50 per Share
• Neutral Sentiment: Earnings call details available — Management provided color in the Q4/2025 earnings call and transcript; useful for judging cadence of material sales, royalty trajectory and margin outlook. Universal Display Corporation (OLED) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst target adjusted — Needham cut its price target from $150 to $145 but kept a “buy” rating, signaling continued confidence despite near-term headwinds. Analyst price target update
• Negative Sentiment: 2026 revenue guide below consensus — UDC guided revenue of $650M–$700M for FY2026, under the consensus (~$718.5M), which likely drove today’s selloff despite the beat. Investors are focused on the slower near-term demand outlook implied by the guide. Universal Display Corporation Announces Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Large holder exit — Peregrine sold ~50,560 shares (~$7.3M), reducing an institutional position; while not decisive alone, it can add selling pressure in thin windows. Peregrine Closes 50,000-Share OLED Position Worth USD7.3 Million

Institutional Trading of Universal Display

Several hedge funds have recently modified their holdings of OLED. Measured Wealth Private Client Group LLC bought a new position in shares of Universal Display in the third quarter valued at approximately $33,000. Canada Pension Plan Investment Board acquired a new stake in Universal Display during the 2nd quarter valued at $62,000. UMB Bank n.a. raised its position in Universal Display by 28.3% in the 4th quarter. UMB Bank n.a. now owns 549 shares of the semiconductor company’s stock valued at $64,000 after purchasing an additional 121 shares during the last quarter. State of Wyoming acquired a new position in Universal Display in the fourth quarter worth $175,000. Finally, Marex Group plc acquired a new position in Universal Display in the fourth quarter worth $200,000. Institutional investors and hedge funds own 78.19% of the company’s stock.

Analyst Upgrades and Downgrades

OLED has been the topic of a number of recent research reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Universal Display in a research note on Wednesday, December 24th. Citigroup reduced their price objective on shares of Universal Display from $150.00 to $130.00 and set a “neutral” rating for the company in a report on Tuesday, January 27th. Zacks Research lowered shares of Universal Display from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, November 19th. Needham & Company LLC lowered their target price on shares of Universal Display from $150.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Wall Street Zen lowered shares of Universal Display from a “hold” rating to a “sell” rating in a research report on Saturday, February 14th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Universal Display presently has an average rating of “Hold” and an average target price of $151.67.

About Universal Display

Universal Display Corporation (NASDAQ: OLED) is a technology company specializing in organic light-emitting diode (OLED) solutions. The company develops and commercializes materials, technologies and software used in the creation of OLED displays and lighting. Its offerings include proprietary phosphorescent OLED (PHOLED) materials, display driver integrated circuits and process technologies that enable higher efficiency, longer lifetimes and improved color performance for a range of display and lighting applications.

Universal Display’s core business is licensing its extensive OLED patent portfolio to display manufacturers and providing them with the key organic materials needed for device fabrication.