Universal Display Q2 revenue misses estimates on lower material sales

Universal Display

30/07/2026 21:19

Overview
OLED materials supplier's Q2 revenue declined yr/yr, missing analyst expectations
Company cut 2026 revenue outlook to lower end of prior guidance range
Universal Display repurchased $48.2 mln in shares during Q2

Outlook
Universal Display expects 2026 revenue at the lower end of $630 mln to $670 mln range
Company sees continued investment in OLED ecosystem and expanding adoption in IT, automotive
Universal Display notes near-term challenges in consumer electronics market

Result Drivers
LOWER MATERIAL VOLUME - Co said Q2 material sales fell due to lower unit material volume and changes in customer mix
CATCH-UP ADJUSTMENTS - Unfavorable catch-up adjustment for material sales and favorable adjustment for royalty and license fees impacted Q2 revenue
CONSUMER ELECTRONICS CHALLENGES - Co cited near-term challenges in consumer electronics market affecting results

Company press release: ID:nBw7d27hfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$152.20 mln
$157.55 mln (7 Analysts)
Q2 Net Income
 
$49.40 mln
 
Q2 Gross Margin
 
76.00%
 
Q2 Operating Income
 
$53.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Universal Display Corp is $125.00, about 55.9% above its July 29 closing price of $80.16
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 30 - Belgium's X-FAB Q2 revenue misses estimates, hurt by automotive weakness
July 27 - Element Solutions Q2 sales beat estimates on electronics segment strength 
July 30 - Germany's Aixtron misses Q2 revenue and profit estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)