Q3 EPS Estimates for InterDigital Lowered by Zacks Research

Key Points

• Zacks Research lowered InterDigital’s Q3 2026 EPS estimate to $1.65 from $1.68 and cut its FY2026 forecast to $9.45 from $9.64, while maintaining a “Strong Buy” rating.
• InterDigital’s latest quarterly results significantly exceeded expectations, with EPS of $4.62 versus the $0.90 consensus and revenue of $260.17 million versus $143.10 million expected.
• The company raised its quarterly dividend to $0.75 per share from $0.70, equivalent to a $3.00 annualized payout and a 0.9% yield; analysts maintain a consensus “Buy” rating with a $450 price target.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Equities researchers at Zacks Research dropped their Q3 2026 earnings per share (EPS) estimates for shares of InterDigital in a report released on Friday, October 9th. Zacks Research analyst Team now expects that the Wireless communications provider will post earnings per share of $1.65 for the quarter, down from their prior forecast of $1.68. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for InterDigital's current full-year earnings is $9.52 per share. Zacks Research also issued estimates for InterDigital's Q4 2026 earnings at $1.59 EPS, FY2026 earnings at $9.45 EPS, Q1 2027 earnings at $2.04 EPS, Q2 2027 earnings at $2.01 EPS, Q3 2027 earnings at $2.21 EPS, Q4 2027 earnings at $2.39 EPS, FY2027 earnings at $8.65 EPS, Q1 2028 earnings at $2.40 EPS, Q2 2028 earnings at $2.65 EPS, Q3 2028 earnings at $2.91 EPS and FY2028 earnings at $10.78 EPS.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, topping 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%. The firm's revenue was down 13.4% compared to the same quarter last year. During the same quarter in the previous year, the firm 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.

Separately, Weiss Ratings raised InterDigital from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company. According to MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $450.00.

InterDigital Trading Down 1.0%

Shares of NASDAQ:IDCC opened at $328.14 on Tuesday. InterDigital has a 52-week low of $249.14 and a 52-week high of $412.60. The stock has a market cap of $8.47 billion, a price-to-earnings ratio of 37.85 and a beta of 1.43. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.01. The business has a 50-day moving average price of $335.55 and a 200-day moving average price of $306.68.

Institutional Trading of InterDigital

A number of hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC grew its holdings in InterDigital by 1.9% during the third quarter. GAMMA Investing LLC now owns 2,081 shares of the Wireless communications provider's stock worth $679,000 after acquiring an additional 38 shares during the period. Congress Asset Management Co. raised its position in InterDigital by 8.7% during the third quarter. Congress Asset Management Co. now owns 458,053 shares of the Wireless communications provider's stock valued at $149,357,000 after acquiring an additional 36,620 shares in the last quarter. Polaris Financial Partners acquired a new position in InterDigital in the third quarter valued at approximately $33,000. Tidal Investments LLC lifted its holdings in InterDigital by 19.0% in the second quarter. Tidal Investments LLC now owns 78,161 shares of the Wireless communications provider's stock valued at $22,130,000 after acquiring an additional 12,501 shares during the period. Finally, Integrated Wealth Concepts LLC lifted its holdings in InterDigital by 5.0% in the second quarter. Integrated Wealth Concepts LLC now owns 1,447 shares of the Wireless communications provider's stock valued at $410,000 after acquiring an additional 69 shares during the period. Hedge funds and other institutional investors own 99.83% of the company's stock.

Insiders Place Their Bets

In related news, CTO Rajesh Pankaj sold 1,500 shares of the business's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $324.88, for a total transaction of $487,320.00. Following the completion of the transaction, the chief technology officer directly owned 66,516 shares in the company, valued at $21,609,718.08. The trade was a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan Gillman sold 300 shares of the company's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $331.06, for a total transaction of $99,318.00. Following the completion of the sale, the director directly owned 22,736 shares in the company, valued at approximately $7,526,980.16. The trade was a 1.30% 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 4,800 shares of company stock valued at $1,595,118 over the last 90 days. 3.50% of the stock is currently owned by insiders.

InterDigital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 28th. Investors of record on Wednesday, October 14th will be issued a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 0.9%. This is a boost from InterDigital's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Wednesday, October 14th. InterDigital's dividend payout ratio is 34.60%.

Key InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Zacks increased its EPS forecasts for FY2027 to $8.65 from $8.49 and FY2028 to $10.78 from $10.65. Estimates were also raised for Q1 2027, Q2 2027, Q3 2027, Q4 2027, Q1 2028, Q2 2028 and Q3 2028, suggesting analysts expect improving earnings power over the longer term.
• Positive Sentiment: InterDigital and Parks Associates reported that High Dynamic Range (HDR) is becoming a standard feature across streaming, television, mobile, gaming and live events. The trend supports InterDigital’s positioning in video processing, compression and AI-enabled technologies, although the report does not provide a specific revenue or earnings forecast. New Research Reveals HDR is Foundational to Premium Video
• Neutral Sentiment: The analyst revisions were mixed overall. Zacks lowered its FY2026 EPS estimate to $9.45 from $9.64 and reduced Q3 2026 EPS to $1.65 from $1.68 and Q4 2026 EPS to $1.59 from $1.73. However, the firm’s FY2028 forecast of $10.78 remains above the current-year consensus estimate of $9.52.
• Negative Sentiment: Reported insider-trading data shows 15 sales and no purchases by InterDigital insiders during the past six months. While insider sales may reflect scheduled transactions or personal financial planning, the absence of insider buying can temper investor sentiment.

InterDigital Company Profile

InterDigital, Inc is a research and development company that designs and develops advanced wireless, video and related technologies. Its work supports cellular communications, including 2G, 3G, 4G and 5G networks, as well as Wi-Fi, video coding, artificial intelligence and other connected-device applications. The company's technologies are incorporated into mobile phones, network equipment, consumer electronics and other wireless products.

InterDigital primarily commercializes its innovations through a patent-licensing business.

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