Universal Display Corporation (Nasdaq: OLED) reported financial results for the third quarter ended September 30, 2026, filing an -K with the Securities and Exchange Commission on October 28, 2026. The company reported total revenue of $160.4 million for the third quarter of 2026, an increase from $139.6 million in the prior year period.
Revenue was comprised of $79.7 million from material sales and $75.5 million from royalty and license fees. The company noted that the decrease in material sales was primarily due to changes in customer mix and a $4.8 million unfavorable period-over-period change in the cumulative catch-up adjustment, partially offset by higher unit material volume. Conversely, royalty and license fees increased due to higher unit material volume, changes in customer mix, and a $9.5 million out-of-period adjustment that reduced prior-year revenue.
For the first nine months of 2026, total revenue was $454.8 million, compared to $477.7 million in the same period in 2025. The company noted that material sales decreased due to changes in customer mix and lower unit material volume, while royalty and license fees increased due to a favorable period-over-period adjustment in the cumulative catch-up adjustment.
Universal Display reported a total gross margin of 73% for the third quarter of 2026, compared to 75% in the prior year period. Operating income was $53.7 million for the third quarter of 2026, compared to $43.1 million in the prior year period. Net income for the third quarter of 2026 was $78.9 million, or $1.72 per diluted share, compared to $44.0 million, or $0.92 per diluted share, in the prior year period.
The company also reported non-GAAP adjusted net income of $56.2 million, or $1.23 per diluted share, for the third quarter of 2026. Other income, net, was $37.3 million for the third quarter of 2026, primarily due to a $28.9 million gain related to a UDC Ventures investment and a $7.2 million foreign currency gain.
For 2026, Universal Display stated it continues to believe its revenue will be around the lower end of its previous guidance range of $630 million to $670 million. The company announced a fourth-quarter 2026 cash dividend of $0.50 per share on its common stock, payable on December 31, 2026, to shareholders of record as of December 17, 2026.
During the three months ended September 30, 2026, the company repurchased 963,333 shares of its common stock for $78.8 million. For the nine months ended September 30, 2026, the company repurchased 2,127,217 shares for $192.9 million, including the completion of a $100 million program and purchases under an additional $400 million program authorized by the Board of Directors in April 2026.
