Universal Display Corporation

Revenue for the second quarter of 2026 was $152 million, down from $172 million in the second quarter of 2025. Total gross margin was 76% versus 77% a year ago. Operating income was $54 million, or a 35% operating margin, versus $69 million and 40% in the prior-year quarter. Net income was $49 million, or $1.06 per diluted share, versus $67 million, or $1.41 per diluted share last year. Full-year revenue is now expected to track toward the lower end of the previously communicated $630 million to $670 million range, while second-half revenue is still expected to exceed first-half revenue. Total gross margin guidance for the year remains 74% to 76%, and operating expenses are expected to increase by a low single digit percentage versus 2025.

Steven Abramson emphasized that the OLED industry is still in a long-term expansion phase, driven by new capacity, broader adoption, and new form factors such as foldables and automotive displays. He framed the current slowdown as a near-term cycle issue, not a change in the industry’s underlying trajectory, and pointed to Gen 8.6 OLED investments and new applications as the next growth phase. On blue, he said progress continues, but commercialization timing depends on customers’ road maps, and the company is expanding work across more blue materials and architectures using AI and machine-learning tools.

Brian Millard said Q2 revenue was $152 million, with material sales of $66 million and royalty/license revenue of $81 million; Adhe­sus contributed $4.8 million. He noted that cumulative catch-up adjustments totaled about $10 million in the first half and had a net favorable impact of about $9 million versus Q2 2025. He said the company ended the quarter with about $855 million in cash, cash equivalents and investments, repurchased about 531 thousand shares for about $48 million, and announced a $0.50 third-quarter dividend. He also said operating expenses were $62 million, total gross margin was 76%, and materials gross margins are expected to move back toward historical levels of around 60% in the second half.

Analysts focused on the lower full-year revenue outlook, materials gross margins, China demand, and the pace of blue commercialization. Management said the revenue guide cut is mainly volume-driven rather than pricing-driven, and that ASPs remain stable under long-term customer agreements. On materials margin, Brian Millard said Q2 included a roughly $7 million negative item and expects the rest of the year to normalize toward historical levels. On blue, management said progress is positive but sample revenue is not a good proxy for commercialization, and timing still depends on customer development road maps.