InterDigital (NASDAQ:IDCC) Updates Q1 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) updated its first quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 2.390-2.680 for the period, compared to the consensus estimate of 2.180. The company issued revenue guidance of $194.0 million-$200.0 million, compared to the consensus revenue estimate of $162.5 million.

InterDigital Price Performance

Shares of IDCC traded up $18.87 during midday trading on Friday, hitting $363.92. 77,302 shares of the company traded hands, compared to its average volume of 285,153. The stock has a 50-day moving average of $331.12 and a 200-day moving average of $322.23. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.89 and a quick ratio of 1.89. InterDigital has a one year low of $180.60 and a one year high of $412.60. The firm has a market cap of $9.37 billion, a P/E ratio of 24.55 and a beta of 1.58.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, February 5th. The Wireless communications provider reported $2.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.47. InterDigital had a net margin of 53.50% and a return on equity of 51.89%. The business had revenue of $158.23 million for the quarter, compared to analysts’ expectations of $155.57 million. During the same period in the prior year, the company posted $5.15 EPS. The business’s revenue for the quarter was down 37.4% compared to the same quarter last year. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS. As a group, sell-side analysts predict that InterDigital will post 9.21 EPS for the current fiscal year.

InterDigital Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 28th. Investors of record on Wednesday, January 14th were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, January 14th. InterDigital’s dividend payout ratio is 18.89%.

Analyst Upgrades and Downgrades

A number of brokerages have commented on IDCC. Roth Mkm reissued a “buy” rating on shares of InterDigital in a research note on Tuesday, January 20th. Jefferies Financial Group set a $475.00 price objective on shares of InterDigital and gave the company a “buy” rating in a research report on Thursday, October 30th. Zacks Research lowered shares of InterDigital from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 21st. UBS Group set a $425.00 price objective on InterDigital in a research note on Monday, December 1st. Finally, Weiss Ratings lowered shares of InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a report on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $416.67.

Insiders Place Their Bets

In other InterDigital news, CEO Lawrence Liren Chen sold 5,958 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $327.62, for a total value of $1,951,959.96. Following the transaction, the chief executive officer directly owned 153,077 shares of the company’s stock, valued at $50,151,086.74. This trade represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Richard Brezski sold 6,981 shares of the stock in a transaction on Monday, January 5th. The stock was sold at an average price of $330.49, for a total transaction of $2,307,150.69. Following the sale, the chief financial officer directly owned 83,374 shares in the company, valued at $27,554,273.26. This trade represents a 7.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 36,307 shares of company stock worth $11,905,598. 2.80% of the stock is owned by insiders.

Key Headlines Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q4 results beat expectations — EPS $2.12 vs. $1.65 consensus and revenue $158.2M vs. $155.6M; high margins (net margin ~53.5%) underline profitability. This helped lift near?term sentiment. InterDigital Beats Q4 Earnings Estimates Despite Lower Y/Y Revenues
• Positive Sentiment: Management raised Q1 2026 guidance well above consensus: EPS guidance $2.390–$2.680 (consensus ~2.18) and revenue guidance $194–$200M (consensus ~$162.5M). The stronger outlook is a primary driver of the bullish move. InterDigital Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Company reported a record year with licensing momentum and a ~24% increase in annualized recurring revenue — this strengthens visibility into future cash flows and licensing sustainability. InterDigital Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analyst support: William Blair reiterated a Buy rating, citing undervalued IP franchise and unpriced streaming upside — adds independent validation to the upbeat guidance narrative. InterDigital: Undervalued IP Leader … Buy Rating
• Neutral Sentiment: Management materials and full earnings transcript are available for diligence (useful for modeling cadence of licensing, legal commentary and revenue phasing). InterDigital, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Sales and EPS were materially affected by a sharp drop in catch?up fees tied to licensing deals with OPPO and Lenovo; Q4 revenue declined ~37.4% year?over?year, highlighting volatility in non?recurring licensing income. InterDigital Beats Q4 Earnings Estimates Despite Lower Y/Y Revenues
• Negative Sentiment: Governance risk flagged — disclosure of anti?takeover provisions could limit shareholder rights and reduce upside from potential corporate actions, which some investors view as a long?term negative. InterDigital’s Anti?Takeover Provisions Pose Governance Risk…

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of IDCC. Headlands Technologies LLC increased its position in InterDigital by 47.9% during the 2nd quarter. Headlands Technologies LLC now owns 250 shares of the Wireless communications provider’s stock valued at $56,000 after purchasing an additional 81 shares during the period. Danske Bank A S bought a new stake in shares of InterDigital during the third quarter valued at about $104,000. New Vernon Capital Holdings II LLC raised its stake in InterDigital by 814.3% in the third quarter. New Vernon Capital Holdings II LLC now owns 320 shares of the Wireless communications provider’s stock valued at $110,000 after purchasing an additional 285 shares in the last quarter. Palisade Asset Management LLC purchased a new position in InterDigital in the 3rd quarter worth approximately $197,000. Finally, Schroder Investment Management Group bought a new position in shares of InterDigital in the 3rd quarter worth $205,000. Institutional investors and hedge funds own 99.83% of the company’s stock.

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.