InterDigital (NASDAQ:IDCC) Updates 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 8.740-11.840 for the period, compared to the consensus earnings per share estimate of 9.420. The company issued revenue guidance of $675.0 million-$775.0 million, compared to the consensus revenue estimate of $699.1 million. InterDigital also updated its Q2 2026 guidance to 1.410-1.600 EPS.

InterDigital Price Performance

Shares of NASDAQ:IDCC traded down $6.06 during midday trading on Friday, reaching $290.50. 665,606 shares of the company were exchanged, compared to its average volume of 279,654. The company has a current ratio of 1.88, a quick ratio of 1.84 and a debt-to-equity ratio of 0.06. The business’s fifty day moving average is $347.23 and its two-hundred day moving average is $346.72. InterDigital has a one year low of $202.82 and a one year high of $412.60. The stock has a market cap of $7.51 billion, a PE ratio of 24.35 and a beta of 1.50.

InterDigital (NASDAQ:IDCC) last issued its earnings results on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share for the quarter, topping analysts’ consensus estimates of $2.54 by $0.03. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The firm had revenue of $205.42 million during the quarter, compared to analyst estimates of $196.85 million. During the same quarter in the prior year, the business earned $3.45 earnings per share. InterDigital’s revenue for the quarter was down 2.4% on a year-over-year basis. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS. As a group, analysts predict that InterDigital will post 7.71 earnings per share for the current year.

InterDigital Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 22nd. Shareholders of record on Wednesday, April 8th were given a dividend of $0.70 per share. The ex-dividend date was Wednesday, April 8th. This represents a $2.80 annualized dividend and a yield of 1.0%. InterDigital’s dividend payout ratio (DPR) is 23.47%.

Analysts Set New Price Targets

Several research firms have commented on IDCC. Roth Mkm reiterated a “buy” rating on shares of InterDigital in a research report on Tuesday, January 20th. Wall Street Zen upgraded shares of InterDigital from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of InterDigital in a research report on Wednesday, March 18th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $416.67.

Insiders Place Their Bets

In other news, CTO Rajesh Pankaj sold 1,500 shares of the stock in a transaction on Monday, April 6th. The shares were sold at an average price of $313.30, for a total value of $469,950.00. Following the sale, the chief technology officer owned 72,449 shares of the company’s stock, valued at approximately $22,698,271.70. This represents a 2.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Richard Brezski sold 2,000 shares of the stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $352.24, for a total transaction of $704,480.00. Following the completion of the sale, the chief financial officer directly owned 70,404 shares in the company, valued at approximately $24,799,104.96. This represents a 2.76% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 18,997 shares of company stock valued at $6,672,454. 2.80% of the stock is currently owned by company insiders.

InterDigital News Roundup

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Licensing wins with major customers (Xiaomi, Disney, Tencent) should broaden and stabilize royalty cash flows — improves visibility for future licensing revenue. InterDigital Licensing Wins With Xiaomi Disney And Tencent Reshape Cash Flows
• Positive Sentiment: Management highlighted IP strength and growing ARR (annualized recurring revenue) on the earnings call, supporting long?term monetization and margin potential. InterDigital Earnings Call Highlights IP Strength, ARR Growth
• Positive Sentiment: Company press release reported revenue, adjusted EBITDA and EPS at or above guidance ranges for Q1 and said Smartphone ARR reached a record level—reinforces that licensing engine is intact. InterDigital Announces Financial Results for First Quarter 2026
• Neutral Sentiment: Analyst write?ups and feature pieces judge InterDigital as a compelling IP/royalty play, but they note valuation and cyclicality risks — useful context but not immediate catalysts. InterDigital: A Strong Contender in the Tech Stock Arena
• Negative Sentiment: Second?quarter guidance was well below consensus (Q2 EPS guided to $1.41–1.60 vs. ~ $2.03 expected; revenue guided below estimates), sparking near?term concern about growth momentum. (Company guidance update entry)
• Negative Sentiment: Earnings/metrics messaging was mixed across outlets: some reports flagged an EPS miss versus some expectations and others small beats — the inconsistent communication increases uncertainty and likely amplified the sell?off. InterDigital, Inc. (NASDAQ:IDCC) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Operational headwinds cited by analysts — weaker smartphone revenues, lower catch?up sales in the quarter and rising costs — could pressure near?term margins and cash flow despite licensing gains. InterDigital Q1 Earnings Surpass Estimates Despite Lower Y/Y Revenues

Institutional Investors Weigh In On InterDigital

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD increased its stake in InterDigital by 62.5% in 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 buying an additional 854,845 shares during the period. Invesco Ltd. increased its stake in InterDigital by 24.8% in the 4th quarter. Invesco Ltd. now owns 450,863 shares of the Wireless communications provider’s stock worth $143,546,000 after buying an additional 89,647 shares during the period. Ameriprise Financial Inc. increased its stake in InterDigital by 36.8% in the 2nd quarter. Ameriprise Financial Inc. now owns 309,663 shares of the Wireless communications provider’s stock worth $69,433,000 after buying an additional 83,221 shares during the period. Franklin Resources Inc. increased its stake in InterDigital by 245.6% in the 4th quarter. Franklin Resources Inc. now owns 104,452 shares of the Wireless communications provider’s stock worth $33,255,000 after buying an additional 74,230 shares during the period. Finally, Jacobs Levy Equity Management Inc. increased its stake in InterDigital by 130.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 129,618 shares of the Wireless communications provider’s stock worth $41,268,000 after buying an additional 73,481 shares during the period. Hedge funds and other institutional investors 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.