InterDigital (NASDAQ:IDCC) Issues 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.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Weiss Ratings lowered shares of InterDigital from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, June 12th. Zacks Research raised InterDigital from a “hold” rating to a “strong-buy” rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating and four have given a Buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and an average price target of $416.67.

InterDigital Trading Up 0.5%

Shares of NASDAQ IDCC opened at $304.83 on Friday. The company has a current ratio of 1.74, a quick ratio of 1.88 and a debt-to-equity ratio of 0.06. The stock has a market capitalization of $7.88 billion, a PE ratio of 35.16 and a beta of 1.42. InterDigital has a twelve month low of $247.66 and a twelve month high of $412.60. The stock has a fifty day simple moving average of $270.56 and a 200-day simple moving average of $311.00.

InterDigital (NASDAQ:IDCC) last announced its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating analysts’ consensus estimates of $0.90 by $3.72. The company had revenue of $260.17 million during the quarter, compared to analysts’ expectations of $143.10 million. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.InterDigital’s revenue for the quarter was down 13.4% on a year-over-year basis. During the same period last year, the business posted $6.52 EPS. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. On average, equities analysts forecast 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 paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Wednesday, July 8th. InterDigital’s dividend payout ratio (DPR) is presently 32.30%.

Insider Transactions at InterDigital

In related news, Director Derek K. Aberle sold 522 shares of InterDigital stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $276.64, for a total value of $144,406.08. Following the completion of the transaction, the director owned 7,620 shares in the company, valued at $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Samir Armaly sold 470 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $130,020.80. Following the completion of the sale, the director directly owned 4,608 shares in the company, valued at approximately $1,274,757.12. This represents a 9.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 quarter. Insiders own 3.50% of the company’s stock.

Key Stories Impacting InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company’s first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million–$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85–$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million–$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance?
• Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends
• Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration.
• Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs

Institutional Investors Weigh In On InterDigital

Several institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. grew its stake in InterDigital by 24.8% during 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 last quarter. Mercer Global Advisors Inc. ADV grew its position in shares of 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 last quarter. First Citizens Bank & Trust Co. acquired a new position in shares of InterDigital in the 4th quarter valued at $940,000. EP Wealth Advisors LLC purchased a new stake in InterDigital in the 4th quarter valued at $318,000. Finally, Mackenzie Financial Corp boosted its stake in InterDigital by 45.7% during the 4th 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 period. Hedge funds and other institutional investors 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.