InterDigital (NASDAQ:IDCC) Releases FY 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 10.850-12.810 for the period, compared to the consensus earnings per share 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.

InterDigital Stock Performance

IDCC stock traded up $2.43 during trading on Friday, hitting $305.76. 191,046 shares of the company’s stock traded hands, compared to its average volume of 366,567. InterDigital has a 52 week low of $247.66 and a 52 week high of $412.60. The stock has a fifty day moving average price of $269.68 and a two-hundred day moving average price of $311.04. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $7.90 billion, a price-to-earnings ratio of 28.79 and a beta of 1.42.

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, topping 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 for the quarter, compared to analyst estimates of $143.10 million. During the same quarter in the prior year, the business earned $6.52 earnings per share. InterDigital’s quarterly revenue 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. As a group, equities analysts anticipate that InterDigital will post 7.41 EPS for the current fiscal year.

InterDigital Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th were issued a $0.70 dividend. 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 (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 equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $416.67.

Insider Buying and Selling

In other news, Director John D. Jr. Markley sold 400 shares of the 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 sale, the director owned 11,735 shares in the company, valued at approximately $3,520,500. This represents a 3.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of InterDigital stock in a transaction on Monday, July 6th. The stock was sold at an average price of $286.00, for a total value of $429,000.00. Following the completion of the transaction, the chief technology officer owned 67,976 shares in the company, valued at $19,441,136. The trade was a 2.16% 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 sold 5,872 shares of company stock worth $1,654,159 in the last ninety days. Insiders own 3.50% of the company’s stock.

Trending Headlines about InterDigital

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 Trading of InterDigital

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its position in shares of InterDigital by 62.5% in the fourth 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 in the last quarter. Invesco Ltd. lifted its position in shares of InterDigital by 24.8% in the 4th 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. Ameriprise Financial Inc. boosted 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 purchasing an additional 83,221 shares during the period. Franklin Resources Inc. boosted 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 purchasing an additional 74,230 shares during the period. Finally, Jacobs Levy Equity Management Inc. grew its position in InterDigital by 130.9% during 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 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.