Universal Display (NASDAQ:OLED) Posts Earnings Results, Beats Estimates By $0.11 EPS

Universal Display (NASDAQ:OLED) released its quarterly earnings data on Thursday. The semiconductor company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.11, FiscalAI reports. Universal Display had a return on equity of 14.10% and a net margin of 34.65%.The business had revenue of $172.93 million for the quarter, compared to the consensus estimate of $173.35 million. During the same quarter in the previous year, the company posted $1.22 EPS. The company’s revenue was up 6.5% compared to the same quarter last year.

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 Price Performance

NASDAQ OLED traded down $4.07 during midday trading on Friday, hitting $113.05. 389,539 shares of the company traded hands, compared to its average volume of 755,857. Universal Display has a 52 week low of $103.70 and a 52 week high of $164.29. The company’s 50-day simple moving average is $120.07 and its 200-day simple moving average is $130.71. The company has a market cap of $5.37 billion, a PE ratio of 24.43, a price-to-earnings-growth ratio of 3.37 and a beta of 1.63.

Universal Display Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a dividend of $0.50 per share. This is an increase from Universal Display’s previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Tuesday, March 17th. Universal Display’s dividend payout ratio (DPR) is currently 38.79%.

More Universal Display News

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

• Positive Sentiment: Q4 EPS beat — OLED reported $1.39 EPS vs. the $1.28 consensus, showing better profitability than expected; that supports valuation and can lift the stock. Earnings beat article
• Positive Sentiment: Dividend increase — the board raised the quarterly cash dividend to $0.50 (11.1% hike), payable Mar 31 with record date Mar 17; this raises yield to ~1.7% and signals management confidence and shareholder returns. Dividend press release
• Neutral Sentiment: Revenue roughly flat to estimates — Q4 revenue was $172.93M vs. the $173.35M consensus, showing modest y/y growth but not a material beat; mixed for sentiment. Earnings release / transcript
• Neutral Sentiment: Earnings call and coverage — the Q4 2025 earnings call transcript and multiple analyst writeups provide more detail for investors to parse guidance, margin drivers, and demand trends. Earnings call transcript
• Negative Sentiment: FY2026 revenue guidance below Street — management gave a revenue range (~$650M–$700M) that sits under the consensus (~$718.5M), which can pressure the shares as it implies slower near‑term growth. Guidance details
• Negative Sentiment: Analyst target trimmed — Needham cut its target from $150 to $145 but kept a buy rating, signaling modestly reduced upside expectations. Analyst note
• Negative Sentiment: Block sale by a shareholder — Peregrine sold ~50.6k shares (~$7.3M), which may add selling pressure though not necessarily reflective of company fundamentals. Insider / fund sale

Analyst Upgrades and Downgrades

OLED has been the topic of several recent analyst reports. Weiss Ratings reissued 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 on the stock in a research report on Tuesday, January 27th. Wall Street Zen downgraded shares of Universal Display from a “hold” rating to a “sell” rating in a research note on Saturday, February 14th. Needham & Company LLC cut their target price on Universal Display from $150.00 to $145.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Roth Mkm reiterated a “buy” rating on shares of Universal Display in a report on Friday. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $162.00.

Institutional Investors Weigh In On Universal Display

A number of institutional investors have recently added to or reduced their stakes in the stock. Elevation Point Wealth Partners LLC acquired a new stake in Universal Display in the fourth quarter worth about $315,000. Tower Research Capital LLC TRC raised its position in shares of Universal Display by 7.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,040 shares of the semiconductor company’s stock valued at $315,000 after purchasing an additional 136 shares during the last quarter. Benjamin Edwards Inc. purchased a new position in shares of Universal Display in the 2nd quarter valued at approximately $303,000. Northwestern Mutual Wealth Management Co. boosted its stake in Universal Display by 5.7% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,999 shares of the semiconductor company’s stock worth $287,000 after purchasing an additional 108 shares in the last quarter. Finally, Franklin Resources Inc. purchased a new stake in Universal Display during the 4th quarter worth approximately $276,000. Institutional investors own 78.19% of the company’s stock.

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.