Universal Display Plunges 15.9% to 2025 Low on Earnings Miss, Guidance Cut

The share price fell to its lowest level since April 2025 today, with an intraday decline of 15.92%.

Universal Display’s two-day slump, eroding 14.87% from its recent peak, followed a disappointing third-quarter earnings report. The company missed revenue and earnings estimates, with sales dropping 13.6% year-over-year to $139.6 million, and EPS falling 34% to $0.92. A sharp decline in royalty and license fees—down to $53.3 million from $74.6 million in the prior year—was cited as a primary driver, alongside a one-time $9.5 million out-of-period adjustment. The firm also cut its 2025 revenue guidance to the lower end of its $650 million–$700 million range, signaling near-term growth concerns despite a $647.7 million revenue performance in 2024. Gross margins contracted three percentage points to 75%, reflecting weaker material sales and a shifting customer mix.

Investor sentiment soured as the market reacted to the earnings miss and revised guidance. Shares plunged 14.8% in after-hours trading, with analysts noting heightened sensitivity to cyclical demand shifts in the OLED sector. CEO Brian Millard attributed the underperformance to timing-related factors, such as customer pull-ins earlier in the year, rather than structural issues. While the company remains optimistic about long-term opportunities in IT and automotive OLED adoption, the recent volatility underscores its reliance on licensing revenue and susceptibility to short-term demand fluctuations. Analysts maintained a cautiously bullish stance, citing the firm’s leading market position and favorable gross margins, though the stock’s 27 P/E ratio and recent price correction highlight the sector’s inherent volatility.