Universal Display (OLED) 2026 年第三季法說會：營收成長，財測指引接近低標

重點摘要

• Universal Display Corporation 公布 2026 年第三季營收為 1.6 億美元，高於 2025 年第三季的 1.4 億美元，受惠於較高的權利金與授權費收入。
• GAAP 淨利增至 7,900 萬美元，即稀釋後每股盈餘 1.72 美元。若扣除 UDC Ventures 的非現金投資收益，調整後淨利約為 5,600 萬美元，即稀釋後每股盈餘 1.23 美元。
• 材料銷售額由 8,300 萬美元降至 8,000 萬美元，主因客戶組合變化以及累計追溯調整出現 480 萬美元的不利年減變化，但出貨量成長抵銷了部分降幅。
• 管理層預估全年營收將落在先前預估 6.3 億至 6.7 億美元區間的低點附近。全年毛利率預估也將接近 74% 至 76% 預估區間的低點。
• 折疊裝置與 OLED IT 應用仍是核心成長動能。Omdia 預估到 2030 年，折疊智慧型手機出貨量將達 4,500 萬台，OLED IT 出貨量將達 8,900 萬台。
• Universal Display 持續推進磷光藍光、OLEDX 與 NovaJet 的發展，不過藍光商業化的時程仍取決於客戶的產品路線圖。

核心財務績效

其他收入為 3,700 萬美元，高於去年同期的 100 萬美元。這主要反映了 UDC Ventures 投資的 2,900 萬美元未實現非現金收益，以及與韓元應收退稅相關的 700 萬美元外匯收益。

Universal Display 截至本季末擁有約 8.28 億美元的現金、現金等價物及投資。公司在第三季斥資約 7,900 萬美元回購約 96.3 萬股，並在 2026 年前九個月斥資 1.93 億美元回購約 210 萬股。董事會宣佈第四季每股配息 0.50 美元。

業務與營運表現

管理層強調，折疊裝置與 IT 顯示器仍是主要的擴展領域。Omdia 預測折疊智慧型手機出貨量將從 2025 年的 1,800 萬台增至 2030 年的 4,500 萬台；同期 OLED IT 出貨量預估將從 2,700 萬台升至 8,900 萬台。

據管理層表示，顯示器製造商已共同承諾向 8.6 代 OLED 產能投資約 200 億美元。三星顯示（Samsung Display）、京東方（BOE）、維信諾（Visionox）與 TCL 華星光電（TCL China Star）均參與了此項產能投資。

Universal Display 推出專有平台 OLEDX，旨在增加傳導至使用者的光量。公司表示，OLEDX 能支援更高的效率、提升影像真實度，並提供更好地掌控觀看體驗。

磷光藍光仍是核心研究重點。公司正在利用人工智慧、機器學習與計算工具來加速材料發現。其平台已產生超過 10 億個虛擬分子設計，並評估了約 5,000 萬個候選分子。

UVJC 推出其首個商業化系統 NovaJet。這款初始的小型設備係專為探索半導體、半導體封裝、太陽能光電、固態電池、有機電子與生命科學領域乾式印刷應用的研究人員與技術人員所設計。

管理層展望

管理層預估 2026 全年營收將趨向先前預估 6.3 億至 6.7 億美元區間的低點。公司預期下半年新品上市的動能將延續至第四季，同時也將展開通常於第一季上市產品的材料採購與生產。

受產品與客戶組合影響，全年毛利率預計落在 74% 至 76% 指引區間的低點。預計全年材料銷售額與權利金及授權收入的比率約為 1.1:1。

正式的 2027 年財測預計將於 2 月公布。管理層引述第三方預測指出，明年 OLED 裝置面積預估將有中個位數成長，同時強調總體經濟仍具不確定性且記憶體市場供需緊繃。

風險與關注焦點

• 客戶與產品組合正在對材料價格及毛利率造成壓力。
• 預計 2027 年投入成本將升高，儘管製造規模與製程改善可能會抵銷部分壓力。
• 管理層預期整體經濟不確定性以及居高不下的零組件成本（特別是記憶體價格）將持續至 2027 年。
• 磷光藍光的商業化取決於客戶的產品路線圖，且在目前的技術過渡期內，藍光開發營收預計仍將保持在較低水準。
• OLEDX、NovaJet 及其他新興平台仍有待客戶進一步採用與商業化進展。

分析師問答重點

關於毛利率，管理層表示由於客戶與產品組合變化，展望有所調整。公司仍預計全年毛利率將落在 74% 至 76% 的區間內，但接近該區間的低點。

關於 2027 年的利潤率，管理層指出較高的投入成本為不利因素。製造效率、規模效益與工廠製程改善或可抵銷部分壓力，但公司預估將面臨多重利潤率挑戰。

關於磷光藍光，管理層表示持續根據客戶需求調整開發工作，並擴大 AI 在分子探索中的應用。目前尚未確定商業化時程，且在過渡至下一代材料期間，藍光開發營收預估將維持在低檔。

關於 PSF（即磷光增敏螢光 OLED 架構），管理層表示其經濟價值目前看起來與傳統磷光技術相近，包括相當的摻雜比例與營收潛力。

關於材料銷售，管理層將出貨量成長與營收表現之間的差距歸因於客戶組合變化，以及累計追溯調整出現 480 萬美元的同比變動。

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完整財報電話會議逐字稿

管理層陳述

Operator

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's Third Quarter 2026 Earnings Conference Call. My name is Sherry, and I will be your conference moderator for today's call. [Operator Instructions] As a reminder, this conference call is being recorded for replay purposes.

I would now like to turn the call over to Darice Liu, Senior Director of Investor Relations. Please go ahead.

Darice Liu

Thank you, and good afternoon, everyone. Welcome to Universal Display's Third Quarter Earnings Conference Call.

Joining me on the call today are Steve Abramson, President and Chief Executive Officer; and Brian Millard, Chief Financial Officer and Treasurer.

Before Steve begins, let me remind you today's call is the property of Universal Display. Any redistribution, retransmission or rebroadcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited. Further, this call is being webcast live and will be made available for a period of time on Universal Display's website.

This call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, October 28, 2026. During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially.

These risks and uncertainties are discussed in the company's periodic reports filed with the SEC and should be referenced by anyone considering making any investments in the company's securities. Universal Display disclaims any obligation to update any of these statements.

Now I'd like to turn the call over to Steve Abramson.

Steven V. Abramson

Thanks, Darice, and good afternoon, everyone. The OLED industry continues to build towards its next phase of growth. The past few months have highlighted both the expanding reach of OLED and the industry's continued investment in innovation and adoption. We saw continued momentum in foldables, new OLED capacity announcements, growing efforts to expand OLED TV share and important advancements in several key areas of our technology road map.

We also introduced our groundbreaking OLEDX platform and reached a major commercialization milestone through the launch of NovaJet by Universal Vapor Jet Corporation, or UVJC. Together, these developments reinforce our confidence in OLED's long-term trajectory and UDC's leadership role in helping shape that future.

Let me begin with foldables, where we are seeing meaningful innovation, investment and adoption across the industry. Foldables reached an important milestone with Apple's launch of the iPhone Duo, their first foldable smartphone. Initial production allocations sold out within minutes of preorders opening with delivery estimates now extending into 2027 due to strong demand and limited early supply.

The foldables are not just an Apple story. The race to establish leadership in foldables is accelerating. Ahead of the iPhone Duo launch, Samsung released its Galaxy Z8 series, Xiaomi introduced its new 18 Fold and Huawei unveiled its third-generation tri-fold, the Mate XT 2. These launches, together with broader industry activity, underscore the growing importance of foldables as a strategic category for leading smartphone makers.

Foldable smartphones are becoming one of the industry's most compelling growth stories. While the broader smartphone market continues to face macroeconomic uncertainty, premium devices have remained relatively resilient and foldables are emerging as one of the fastest-growing segments. Omdia forecasts foldable smartphone shipments will reach 45 million units by 2030, up approximately 150% from 18 million units in 2025.

Foldables deliver big screen versatility in a pocket-sized device, combining the convenience and portability of a smartphone with the immersive experience and added functionality of a much larger display. With nearly 2 to 3x the square inches of a traditional smartphone, foldables showcase what OLED's do uniquely well, enabling thin, lightweight, flexible and power-efficient displays that conventional technologies simply cannot match.

Another major area of expansion is IT, where OLED adoption is accelerating across notebooks, tablets and monitors. As new capacity comes online, Omdia expects OLED IT shipments to reach 89 million units in 2030, more than tripling from 27 million units in 2025. Industry investment continues to support that growth outlook. Display makers have collectively committed approximately $20 billion toward Gen 8.6 OLED capacity, including investments by Samsung Display, BOE, Visionox and TCL China Star.

Most recently, Samsung Display announced plans to restart construction of a new greenfield OLED facility focused on foldables and IT applications, while LG Display is expanding Gen-6 capacity and evaluating future Gen-8 investments. We are also seeing encouraging developments in TVs. New OLED TV models from LG, Sony and Panasonic are using LG Display's lower-cost SE architecture, helping broaden OLED's addressable market while preserving its premium picture quality.

Beyond consumer electronics, we continue to see attractive prospects in the automotive market. OLED's design flexibility, image quality and ability to support immersive digital interiors position the technology well for next-generation vehicle platforms. OLED's impact in automotive also extends beyond the cockpit. This month marks 10 years of OLED lighting in Audi production vehicles, highlighting how OLED technology continues to expand its role in automotive design, functionality and communication.

Foldables, IT, TVs and automotive each address different markets. And together, they are expanding OLED's reach across a broader set of products, applications and customers. As OLED continues to evolve, so does the opportunity to push the boundaries of performance, efficiency and visual experience. That is where UDC's technology leadership matters.

At IMID, a major Korean display conference in August, we introduced OLEDX, a proprietary technology platform designed to extract more light out of an OLED display and deliver it to the user. Our phosphorescent technologies revolutionize OLED efficiency by maximizing light generation. But currently, not all of that light reaches the user. OLEDX is designed to dramatically increase the amount of light that reaches the user. Put simply, phosphorescence creates the photons and OLEDX helps make every photon count.

Together, these complementary technologies can unlock the next level of OLED performance, enabling higher efficiency, enhanced image fidelity and greater control over the viewing experience. Phosphorescent blue remains a central element of our innovation road map, and we continue to make advancements across key performance metrics, including efficiency, color, lifetime and manufacturability. We are also expanding our work into a broader range of materials and device architectures to accelerate commercialization.

While commercialization timing remains depending on customer road maps, we believe phosphorescent blue represents a significant opportunity for both UDC and the OLED industry. Our materials portfolio is also expanding through next-generation red and green emitters designed to support broader color gamut and emerging architectures such as PSF or phosphor-sensitized fluorescent OLED's.

To further accelerate progress, we are leveraging artificial intelligence, machine learning and advanced computational tools through our innovation pipeline. Our AI-enabled discovery platform has generated a virtual library of more than 1 billion molecular designs and evaluated approximately 50 million candidates using proprietary models, enabling us to explore a broader molecular design space more quickly and efficiently.

From that effort, we have already identified hundreds of promising innovative molecular cores, synthesized new candidates and generated leads to advance our commercial blue program. These capabilities are accelerating progress of phosphorescent blue and enhancing our ability to discover and optimize next-generation OLED materials across our broader portfolio.

Beyond our core business, our equipment subsidiary, UVJC, recently launched NovaJet, the first commercial system and a significant milestone for a technology platform UDC has spent years developing. With the potential applications spanning multiple large end markets, including semiconductors, photovoltaics, solid-state batteries, organic electronics and life sciences, we believe UVJC can create new long-term avenues for value creation.

The industry continues to navigate macroeconomic uncertainty and elevated component costs, particularly memory pricing. Display makers and brands continue to invest in OLED capacity, technology and new products. We believe those investments reinforce the industry's long-term growth outlook.

And with that, Brian, I'll turn the call over to you.

Brian Millard

Thanks, Steve. Revenue for the third quarter of 2026 was $160 million compared to $140 million last year. We continue to expect full year revenue to track toward the lower end of our prior guidance range of $630 million to $670 million. Total material sales in the third quarter were $80 million compared to $83 million in the third quarter of 2025.

The decrease in material sales primarily reflected customer mix and a $4.8 million unfavorable year-over-year change in cumulative catch-up adjustments related to estimated product mix, partially offset by higher unit material volume. Green emitter sales, which include our yellow green emitters, were $61 million compared to $65 million in the third quarter of last year. Red emitter sales were $19 million compared to $17 million in the third quarter of 2025.

Revenue from royalty and license fees was $75 million in the third quarter compared to $53 million in the prior year period. The increase was primarily due to higher unit material volume, customer mix and the absence of the $9.5 million out-of-period adjustment that reduced royalty and license revenue in the third quarter of 2025.

The ratio of material sales to royalty and license revenue was approximately 1.1:1 in both the third quarter and the first 9 months of this year, which is now our full year ratio expectation as a result of customer and product mix changes. Adesis, our contract development and manufacturing subsidiary, generated $5.2 million of revenue during the quarter compared to $3.7 million in the third quarter of 2025.

Cost of sales was $43 million for the quarter. Total gross margin was 73% compared to 75% in the prior year period. We expect total gross margins for the full year to trend toward the lower end of the 74% to 76% guidance range due to product mix and customer mix. Operating expenses, excluding cost of sales, were $64 million compared to $61 million in the prior year period.

Operating income was $54 million, representing an operating margin of 33% compared to $43 million and 31% in the prior year period. Other income was $37 million compared to $1 million in the prior year period, primarily reflecting a $29 million unrealized noncash gain on a UDC Ventures investment and a $7 million foreign exchange gain on our Korean won tax receivable. The effective tax rate for the quarter was approximately 20%.

GAAP net income was $79 million or $1.72 per diluted share compared to net income of $44 million or $0.92 per diluted share in the third quarter of 2025. Excluding the UDC Ventures gain, net of tax, adjusted net income was approximately $56 million or $1.23 per diluted share. Because the gain was noncash and unrelated to our core business, we believe adjusted results better reflect operating performance. A reconciliation of GAAP to non-GAAP results is included in today's earnings materials.

I would like to briefly highlight UDC Ventures, which we launched a few years ago to complement our long-standing commitment to innovation and technology leadership. Today, the portfolio includes about a dozen investments and approximately $80 million in assets under management. Our focus is on 3 areas: innovations across the display ecosystem that support our core technologies, AI and machine learning initiatives that advance materials discovery and disruptive technologies with the potential to create new markets and transform industries.

We are already seeing strategic benefits from the companies technologies and relationships fostered through UDC Ventures, and we believe the platform will continue to strengthen our innovation ecosystem, expand our technology pipeline and create long-term value.

Turning to capital allocation. During the third quarter, we repurchased approximately 963,000 shares for approximately $79 million. For the first 9 months of this year, we repurchased approximately 2.1 million shares for approximately $193 million. Over the last 12 months, we returned more than $340 million to shareholders through dividends and share repurchases and reduced our outstanding share count by more than 5%.

And today, we announced that our Board of Directors declared a fourth quarter cash dividend of $0.50 per share. We ended the quarter with approximately $828 million in cash, cash equivalents and investments. Our strong balance sheet and cash generation provides substantial flexibility to invest in innovation, pursue growth opportunities and continue returning capital to shareholders.

With that, I'll turn the call back to Steve.

Steven V. Abramson

Thanks, Brian. Foldables and IT are helping drive the next wave of OLED adoption, while OLEDX, phosphorescent blue and our broader innovation pipeline continues to push the boundaries of OLED performance. Through UVJC, UDC Ventures and Adesis, we are also extending our reach and creating additional avenues for long-term growth.

As we look ahead, we are excited about the opportunities before us and our ability to create value across a growing range of technologies, markets and applications through innovation, technology leadership and disciplined execution. I would like to thank each of our employees for their drive, desire, dedication and heart in elevating and shaping Universal Display's accomplishments and advancements.

We are committed to being a leader in the OLED ecosystem, achieving superior long-term growth and delivering cutting-edge technologies and materials for the industry, for our customers and for our shareholders.

And with that, operator, let's start the Q&A.

Operator

Thank you, Mr. Abramson. [Operator Instructions] Our first question is from Brian Lee with Goldman Sachs.

分析師問答

Brian Lee

Maybe first one for you, Brian. On the gross margin on materials, it's 50% second straight quarter. Can you kind of just walk through the puts and takes, the path to recovery? I think you had talked about getting back to the historical normal of 60% or so by the second half of the year. Is that still on pace for 4Q here? Or is there kind of a different trajectory we should be expecting?

Brian Millard

Brian, there has been a little bit of an evolution over the last few months in terms of the customer and product mix this year. So as you heard in my remarks, we are now expecting still to be within the range of our total gross margin guidance of 74% to 76%, but toward the lower end of that range. So that's really just a function of changes that we've seen in the mix of customers this year as well as the products that they're purchasing.

Brian Lee

Okay. Fair enough. I mean do you anticipate there's normalization as you move into next year? Is there visibility on that? Or is this potentially the new normal?

Brian Millard

Yes. I mean, looking to next year, we'll give formal guidance in February. But as you know, looking at the top line, there's certainly macro uncertainty that we do expect is going to continue into next year. So if you look at -- based on that, especially the memory environment expected to continue to be tight and challenging into 2027.

So if you look at that, the third-party research firms seem to be indicating on the top line roughly mid-single-digit growth expecting next year in terms of square area of OLED devices. And on the gross margin side, there are a number of moving pieces as we look to next year. There are some higher input costs that we do expect to materialize next year.

However, as we continue to grow, there are efficiencies and scale that we can generate through our manufacturing processes. We're also looking at some manufacturing process improvements for the plants that we do think will provide somewhat of an offset, but there are a number of pressures that we're facing on the gross margin side heading into '27.

Brian Lee

Okay. Fair enough. Last question for me, I'll pass it on. Just bigger picture, two of the maybe medium- to longer-term opportunities for you guys, if you could update us on them. One, blue phosphorescent material commercialization, kind of where are you on that? And then two, on the NovaJet, congrats on the progress there. Kind of next milestones? Do you need an equipment partner? Kind of what should we be thinking in terms of how close you are to commercializing and seeing real orders on that technology?

Steven V. Abramson

Brian, so on blue, we're continuing to work with all our customers to align development efforts with future requirements. We're continuing to expand our team. And as we talked in the prepared remarks, we're integrating even more as AI grows, it's helping us invent new molecules and accelerate the growth of that area. So we're very excited about the future, and it's still a story to be told.

On UVJC, this is pretty exciting because you may remember the old OVJP technology. Well, we pivoted on that, moved it to Singapore and are focusing on a number of other areas such as life sciences, semiconductor, semiconductor packaging, photovoltaics, even solid-state batteries. And this is -- the initial product is going to be a small footprint tool that will enable researchers and technologists to work with the technology because it's a really exciting technology of dry printing to see how it can apply in these myriad opportunities. So we're going to continue to evolve the UVJC platform, and we'll keep you posted from time to time.

Brian Lee

Okay.

Operator

Our next question is from Mehdi Hosseini with SIG.

Mehdi Hosseini

A couple of follow-ups for me. Brian, to hit your low end of revenue target for calendar '26 suggests that there's a big ramp coming in Q4, sequential growth in Q4 higher -- much higher than Q3. Should we assume that that's a reflection of the current sell-through and there's minimal downside risk to this?

Brian Millard

Yes. I mean, Mehdi, so there's a handful of products that launched in the second half of the year that we typically see strength from. So we expect that momentum to continue into the fourth quarter. And there's also a handful of products that launch typically in the first quarter of each year, and we see material buying and some production for that -- those launches happening in the fourth quarter. So we do believe it's achievable, and that's our plan at this point is to achieve that low end of the prior range, which is consistent with what we had thought back at the end of July.

Mehdi Hosseini

Sure. Okay. And I know there was a question on blue already addressed with your customers. But I'm kind of surprised there is no development revenue capture. How can I reconcile like the development revenue on blue with your continued engagement with customers?

Steven V. Abramson

Well, our customers still have some blue materials that they're working on. But I think it also -- and this is important, reflects the continued strategic transition as we advance the next generation of phosphorescent blue materials. So during this -- these transitions can affect development revenue from quarter-to-quarter, and we do expect the blue revenue to remain lower during this time period.

Operator

[Operator Instructions] Our next question is from Martin Yang with Oppenheimer & Company.

Martin Yang

I have one question on PSF. On these new architectures when your role takes on a sensitizer as opposed to emitter, can you maybe comment on how should we think about the economic value for UDC either on a per panel or per color basis relative to more conventional architecture? Do you see more opportunity for you, equal, less? Any comment is appreciated.

Steven V. Abramson

Martin, at this point, we're kind of seeing it in the same range of pure phosphorescence. I mean PSF is just starting out. We'll have to see how that works. The phosphorescence is obviously essential for PSF. And right now, it does seem as though it's occupying in the same range of doping percentage in revenues.

Martin Yang

Got it. A second question on volume versus pricing. So we've seen volume growth relative to revenue decline in the past 2 quarters or which implies the pricing is seeing some pressure on a year-over-year basis. Can you help us understand what is attributing to that decline?

Brian Millard

Yes. Martin, it's Brian. So there's 2 factors driving that. The first is just customer mix. We have different arrangements with each of our customers in that regard. And obviously, customers that have more volume, you would expect to have better pricing. As well as we did have a cumulative catch-up change. It was about a $4.8 million swing from Q3 of '25 to Q3 this year. And so -- and a significant portion of that hit the materials line. So if you normalize for that, you still have a little bit of a discrepancy, but lesser of one, and that's really due to the customer mix changes.

Martin Yang

Got it.

Brian Millard

Thanks, Martin.

Operator

There are no further questions at this time. I would like to turn the floor back over to Brian Millard for some closing remarks.

Brian Millard

Thank you for joining us today. We remain confident in the long-term drivers for the company and the industry and including the continued adoption across new products, applications and form factors. We appreciate your continued interest and look forward to speaking with you next quarter.

Operator

Thank you. This does conclude our conference. You may disconnect your lines at this time.