Universal Display Reports Record Q2 Earnings and Raises 2025 Revenue Guidance to $650M-$700M

Universal Display reported Q2 EPS of $1.41, beating the consensus of $1.16, and Q2 revenue of $171.8M, exceeding the consensus of $160.84M. The company raised its 2025 revenue guidance range to $650M-$700M and expects a new phase of expansion in the OLED industry driven by growing demand in the nascent OLED IT market.

Universal Display (NASDAQ: OLED) reported its Q2 2025 results, exceeding market expectations with revenue up 8.4% year-on-year to $171.8 million. The company's full-year revenue guidance was also lifted to $650 million to $700 million, surpassing analysts' estimates by 0.7% [1].

The company's GAAP profit of $1.41 per share was 21.2% above analysts' consensus estimates, highlighting its strong earnings performance. This quarter, Universal Display's revenue exceeded Wall Street's estimates by 6.1%, marking 6 consecutive quarters of growth. The company's operating margin improved to 39.9%, up from 35.6% in the same quarter last year [1].

Universal Display's inventory days outstanding (DIO) increased to 483, up from 447 in the previous quarter, suggesting higher inventory levels. The company's cash position remained strong, with approximately $932 million in cash, cash equivalents, and investments at the end of the quarter [2].

The company expects a new phase of expansion in the OLED industry, driven by growing demand in the nascent OLED IT market. Management highlighted significant investments in OEM and panel maker partnerships, including Samsung Display, BOE, Visionox, LG Display, and TCL China Star. These partnerships aim to capitalize on the accelerating demand for OLED displays in tablets, laptops, and monitors, as well as in the automotive sector [2].

Looking ahead, Universal Display expects total gross margins for the full year to be in the range of 76% to 77%, with operating margins expected to be at the upper end of its 35% to 40% guidance range. The company's contract research services revenue also showed strong growth, with Adesis contributing $7.5 million in revenue compared to $3.5 million in the previous year [2].

References:

[1] https://finance.yahoo.com/news/universal-display-nasdaq-oled-posts-212147202.html

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