Universal Display Raises Revenue Guidance to $650M-$700M on Accelerated OLED Demand

Universal Display has reported record Q2 2025 revenue of $172m and net income of $67m, driven by accelerating demand for OLED technology in the IT and automotive sectors. The company has raised its full-year revenue guidance to $650m-$700m.

Universal Display Corporation (OLED) has reported record Q2 2025 revenue of $172 million and net income of $67 million, driven by accelerating demand for OLED technology in the IT and automotive sectors. The company has raised its full-year revenue guidance to $650 million to $700 million, reflecting the robust growth of OLED displays in various markets.

Steven V. Abramson, President and CEO of Universal Display, highlighted the dynamic new phase of expansion fueled by growing OLED demand in tablets, laptops, and monitors. OLEDs, which currently represent less than 5% of the IT market, are projected to more than double in units by 2027. The CEO also noted significant investments in OEM and panel maker partnerships, including Samsung Display, BOE, Visionox, LG Display, and TCL China Star, with substantial new Gen 8.6 OLED fabs and a $1 billion LG Display investment.

Automotive OLED adoption is accelerating, with Omdia projections indicating that automotive OLED display shipments will grow by more than 300% from 2.8 million units in 2024 to 9.1 million units in 2029. Innovations in OLED display form factors, including foldables and stretchables, were showcased at Display Week, with foldable shipments expected to more than double by 2029. Abramson emphasized the company's R&D and proprietary AI/ML platforms that accelerate lead optimization and enhance development pathways, expanding the portfolio of next-generation OLED materials.

Brian Millard, CFO, stated that revenue in the second quarter was $172 million, compared to $159 million in the second quarter of 2024. The company now estimates that its 2025 ratio of materials to royalty and licensing revenues will be in the ballpark of 1.3:1. Millard added that second quarter royalty and license fees were $76 million compared to the prior year's $60 million, and Adesis contributed $7.5 million in revenue. The company expects total gross margins for the full year to be in the range of 76% to 77%, with operating margins now expected to be at the upper end of its 35% to 40% guidance range.

Management expects 2025 OpEx to decrease year-over-year by a low single-digit percentage. The company ended the quarter with approximately $932 million in cash, cash equivalents, and investments. A $0.45 quarterly dividend has been approved for September 30, 2025.

Analysts were mainly focused on granular revenue drivers, the blue emitter, and market adoption, with a neutral to slightly positive tone. Management maintained confidence, repeatedly emphasizing robust demand, innovation, and positive customer feedback. The tone was more confident compared to the previous quarter, with less uncertainty about tariffs and more focus on growth opportunities and execution.

References:
[1] https://seekingalpha.com/news/4476180-universal-display-raises-2025-revenue-guidance-to-650m-700m-as-oled-demand-accelerates-in-it