Universal Display Corporation's stock surged 5.49% in after-hours trading on Thursday, as investors reacted positively to the company's announcement of significant capital return initiatives.

The OLED materials provider announced a new $400 million share repurchase authorization and declared a quarterly cash dividend of $0.50 per share. These corporate actions were announced alongside the company's first-quarter 2026 financial results, which showed revenue of $142.2 million, missing analyst estimates of $160.7 million, and adjusted earnings of $0.76 per share, below the consensus estimate of $1.18.

The substantial share repurchase program, which follows the completion of a prior $100 million buyback, appears to have outweighed investor concerns about the quarterly earnings miss and the company's revised 2026 revenue guidance of $630-$670 million, down from previous guidance of $650-$700 million.