Universal Display Q2 revenue misses estimates on lower material sales

Universal Display cut its 2026 revenue outlook to the lower end of its prior guidance range, and now expects revenue of $630 million to $670 million.

The company said it continues to see investment in the OLED ecosystem and expanding adoption in IT and automotive.

Universal Display repurchased $48.2 million in shares during the second quarter.

The current average analyst rating on the shares is "buy," with 8 "strong buy" or "buy" ratings, 3 "hold" ratings and no "sell" or "strong sell" ratings.

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.

The company said material sales fell due to lower unit material volume and changes in customer mix. It also cited an unfavorable catch-up adjustment for material sales and a favorable adjustment for royalty and license fees that affected second-quarter revenue.

Universal Display added that near-term challenges in the consumer electronics market are affecting results.

Universal Display Corp said second-quarter revenue declined year over year and missed analyst expectations, as lower material sales and customer-mix changes weighed on results.