InterDigital (NASDAQ:IDCC) Releases FY 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 10.850-12.810 for the period, compared to the consensus EPS estimate of 9.170. The company issued revenue guidance of $775.0 million-$845.0 million, compared to the consensus revenue estimate of $700.9 million. InterDigital also updated its Q3 2026 guidance to 1.940-2.130 EPS.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings lowered shares of InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, June 12th. Four investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $416.67.

InterDigital Trading Up 16.2%

Shares of InterDigital stock traded up $42.19 during trading hours on Thursday, hitting $303.33. The company’s stock had a trading volume of 664,902 shares, compared to its average volume of 232,437. The company has a market capitalization of $7.84 billion, a PE ratio of 28.56 and a beta of 1.42. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.88 and a quick ratio of 1.88. The stock has a 50 day moving average of $268.96 and a 200 day moving average of $311.08. InterDigital has a 12 month low of $247.66 and a 12 month high of $412.60.

InterDigital (NASDAQ:IDCC) last released its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 35.25% and a net margin of 44.20%.During the same quarter in the previous year, the firm posted $6.52 EPS. InterDigital’s revenue for the quarter was down 13.4% on a year-over-year basis. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Analysts predict that InterDigital will post 7.41 earnings per share for the current year.

InterDigital Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, July 8th. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. InterDigital’s dividend payout ratio is currently 26.37%.

Insider Activity at InterDigital

In related news, Director Derek K. Aberle sold 522 shares of the firm’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $144,406.08. Following the sale, the director directly owned 7,620 shares in the company, valued at $2,107,996.80. This trade represents a 6.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Jr. Markley sold 400 shares of the company’s stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $300.00, for a total transaction of $120,000.00. Following the completion of the transaction, the director directly owned 11,735 shares of the company’s stock, valued at approximately $3,520,500. The trade was a 3.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 5,872 shares of company stock valued at $1,654,159 over the last three months. Insiders own 3.50% of the company’s stock.

More InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Large earnings beat: InterDigital reported adjusted earnings of $4.62 per share, well above the roughly $0.90–$1.60 analyst estimates cited in the reports. The result was supported by a new Streaming and Cloud Services agreement and licensing-related catch-up revenue. InterDigital Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Raised 2026 outlook: Management increased full-year revenue guidance to $775 million–$845 million, above the prior outlook and the approximately $700.9 million consensus cited in the reports. Full-year EPS guidance of $10.85–$12.81 also exceeds the reported consensus estimate of $9.17. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Recurring revenue reached a record: Annualized recurring revenue rose 13% year over year to approximately $626 million, strengthening the investment case for more predictable licensing and services revenue. Streaming and Cloud Services contributed materially to the quarter.
• Positive Sentiment: Portfolio monetization remains active: InterDigital reached an agreement with Amazon covering services and devices, including Prime Video, with final terms to be determined through binding arbitration. The agreement reinforces the potential value of InterDigital’s intellectual property portfolio.
• Neutral Sentiment: Revenue declined year over year: Quarterly revenue fell about 13% from the prior-year period, while operating expenses increased. This highlights the uneven timing of licensing payments despite the stronger outlook.
• Negative Sentiment: Legal and insider-selling risks: Arbitration over the Amazon agreement could delay or alter the value of future payments. Separately, available trading data shows numerous insider sales and no insider purchases during the past six months, a potential sentiment overhang.

Institutional Investors Weigh In On InterDigital

A number of hedge funds and other institutional investors have recently bought and sold shares of IDCC. Price T Rowe Associates Inc. MD boosted its position in InterDigital by 62.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider’s stock worth $707,477,000 after acquiring an additional 854,845 shares during the last quarter. Invesco Ltd. lifted its position in shares of InterDigital by 24.8% in the fourth quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider’s stock worth $143,546,000 after purchasing an additional 89,647 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in InterDigital by 18.9% during the third quarter. Ameriprise Financial Inc. now owns 368,323 shares of the Wireless communications provider’s stock worth $127,202,000 after purchasing an additional 58,660 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in InterDigital by 13.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 170,352 shares of the Wireless communications provider’s stock worth $54,237,000 after purchasing an additional 20,300 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its position in InterDigital by 130.9% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 129,618 shares of the Wireless communications provider’s stock valued at $41,268,000 after purchasing an additional 73,481 shares in the last quarter. Institutional investors and hedge funds own 99.83% of the company’s stock.

About InterDigital

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company’s principal services include patent licensing, technology evaluation and consulting.