InterDigital (NASDAQ:IDCC) Issues Q3 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) updated its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 1.940-2.130 for the period, compared to the consensus estimate of 2.090. The company issued revenue guidance of $154.0 million-$158.0 million, compared to the consensus revenue estimate of $157.5 million. InterDigital also updated its FY 2026 guidance to 10.850-12.810 EPS.

InterDigital Stock Up 0.8%

NASDAQ IDCC traded up $2.43 on Friday, hitting $305.76. 191,046 shares of the company were exchanged, compared to its average volume of 366,567. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.01. The company has a market cap of $7.90 billion, a PE ratio of 28.79 and a beta of 1.42. The stock has a fifty day moving average of $269.68 and a 200-day moving average of $311.04. InterDigital has a 12 month low of $247.66 and a 12 month high of $412.60.

InterDigital (NASDAQ:IDCC) last posted its quarterly earnings results 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 net margin of 44.20% and a return on equity of 35.25%. The firm had revenue of $260.17 million during the quarter, compared to the consensus estimate of $143.10 million. During the same period in the previous year, the firm posted $6.52 earnings per share. The business’s revenue was down 13.4% compared to the same quarter last year. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. As a group, analysts forecast that InterDigital will post 7.41 earnings per share for the current year.

InterDigital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 22nd. Shareholders of record on Wednesday, July 8th were paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Wednesday, July 8th. InterDigital’s dividend payout ratio (DPR) is 26.37%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings lowered InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, June 12th. Four analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $416.67.

Insider Buying and Selling

In other InterDigital news, Director Derek K. Aberle sold 522 shares of InterDigital 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 transaction, the director directly owned 7,620 shares of the company’s stock, valued at $2,107,996.80. The trade was a 6.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the company’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $286.00, for a total transaction of $429,000.00. Following the completion of the sale, the chief technology officer owned 67,976 shares of the company’s stock, valued at approximately $19,441,136. The trade was a 2.16% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 5,872 shares of company stock valued at $1,654,159. 3.50% of the stock is currently owned by company insiders.

InterDigital News Roundup

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: InterDigital reported second-quarter EPS of $4.62 and revenue of $260.2 million, substantially exceeding analyst estimates. Results benefited from catch-up revenue and the company’s first Streaming and Cloud Services agreement, including an arrangement involving Amazon services and devices. InterDigital Q2 Earnings Beat Estimates Despite Lower Year-over-Year Revenues
• Positive Sentiment: Management raised full-year 2026 revenue guidance to $775 million-$845 million, above the roughly $701 million consensus, while forecasting full-year EPS of $10.85-$12.81. Annualized recurring revenue reached a record $625.7 million, up 13% year over year, supporting the investment case for more predictable licensing income. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Analysts highlight InterDigital’s expansion beyond smartphones into streaming, cloud services, artificial intelligence and IoT, as well as automotive and other connected technologies. A broader patent portfolio could create additional royalty opportunities and reduce reliance on smartphone licensing. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Third-quarter revenue guidance of $154 million-$158 million is broadly in line with consensus, while EPS guidance of $1.94-$2.13 brackets the $2.09 estimate. This suggests continued growth but may provide less of a near-term earnings catalyst.
• Negative Sentiment: Despite the earnings beat, quarterly revenue declined 13.4% year over year and EPS fell from $6.52 in the prior-year period. Smartphone licensing revenue weakened, and operating expenses increased 27% to $120.9 million. InterDigital Q2 Revenue Falls as Outlook Rises
• Negative Sentiment: Commentary flags legal and licensing-enforcement risks, while the stock’s elevated valuation and technically overbought conditions could encourage profit-taking after its recent rally. Reported insider activity also shows numerous sales and no open-market purchases over the past six months.

Institutional Investors Weigh In On InterDigital

Institutional investors have recently added to or reduced their stakes in the company. Invesco Ltd. grew its holdings 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 valued at $143,546,000 after acquiring an additional 89,647 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its holdings in InterDigital by 10.0% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,483 shares of the Wireless communications provider’s stock worth $1,109,000 after acquiring an additional 316 shares during the period. First Citizens Bank & Trust Co. bought a new stake in InterDigital during the fourth quarter worth $940,000. EP Wealth Advisors LLC purchased a new position in InterDigital in the fourth quarter worth $318,000. Finally, Mackenzie Financial Corp boosted its position in InterDigital by 45.7% in the fourth quarter. Mackenzie Financial Corp now owns 6,633 shares of the Wireless communications provider’s stock worth $2,152,000 after purchasing an additional 2,079 shares during the last quarter. 99.83% of the stock is owned by institutional investors.

InterDigital Company Profile

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.