Zacks Research Reduces Earnings Estimates for InterDigital

Key Points

• Zacks Research lowered its InterDigital EPS estimates, forecasting $1.62 for Q3 2026 and $1.54 for Q4, with full-year 2026 EPS reduced to $9.38 from $9.45. Estimates for 2027 and 2028 were also trimmed, while Zacks maintained a “Hold” rating.
• InterDigital recently reported a significant earnings beat, posting $4.62 EPS versus the $0.90 consensus and quarterly revenue of $260.17 million versus expectations of $143.10 million. However, revenue declined 13.4% year over year.
• The company raised its quarterly dividend to $0.75 per share, equivalent to an annualized $3.00 dividend and a 0.9% yield. Analysts overall rate the stock “Moderate Buy,” with a consensus price target of $450.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Zacks Research cut their Q3 2026 earnings per share (EPS) estimates for shares of InterDigital in a report issued on Thursday, October 22nd. Zacks Research analyst Team now forecasts that the Wireless communications provider will post earnings of $1.62 per share for the quarter, down from their prior estimate of $1.65. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for InterDigital's current full-year earnings is $9.39 per share. Zacks Research also issued estimates for InterDigital's Q4 2026 earnings at $1.54 EPS, FY2026 earnings at $9.38 EPS, Q1 2027 earnings at $2.02 EPS, Q2 2027 earnings at $1.98 EPS, Q3 2027 earnings at $2.18 EPS, Q4 2027 earnings at $2.36 EPS, FY2027 earnings at $8.55 EPS, Q1 2028 earnings at $2.37 EPS, Q2 2028 earnings at $2.62 EPS, Q3 2028 earnings at $2.88 EPS and FY2028 earnings at $10.66 EPS.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, beating the consensus estimate 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 business's quarterly revenue was down 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $6.52 earnings per share. 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 upgraded shares of InterDigital from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $450.00.

InterDigital Stock Performance

Shares of IDCC stock opened at $327.28 on Monday. The business's 50 day simple moving average is $333.50 and its 200 day simple moving average is $308.05. InterDigital has a one year low of $249.14 and a one year high of $412.60. The stock has a market capitalization of $8.45 billion, a PE ratio of 37.75 and a beta of 1.43. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74.

InterDigital Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 14th will be given a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 0.9%. This is an increase from InterDigital's previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Wednesday, October 14th. InterDigital's payout ratio is currently 34.60%.

Insider Transactions at InterDigital

In other news, CTO Rajesh Pankaj sold 1,500 shares of the business's stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $334.32, for a total value of $501,480.00. Following the transaction, the chief technology officer directly owned 63,516 shares of the company's stock, valued at $21,234,669.12. The trade was a 2.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joan H. Gillman sold 300 shares of the business's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $331.06, for a total value of $99,318.00. Following the completion of the transaction, the director directly owned 22,736 shares in the company, valued at $7,526,980.16. This represents 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. Over the last quarter, insiders have sold 4,800 shares of company stock valued at $1,595,118. Company insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On InterDigital

Several large investors have recently added to or reduced their stakes in IDCC. Reinhart Partners LLC. increased its stake in shares of InterDigital by 9.0% in the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock valued at $130,359,000 after acquiring an additional 38,115 shares in the last quarter. NewEdge Wealth LLC lifted its position in shares of InterDigital by 68.4% during the 1st quarter. NewEdge Wealth LLC now owns 13,783 shares of the Wireless communications provider's stock valued at $4,163,000 after acquiring an additional 5,599 shares during the period. Renaissance Technologies LLC lifted its position in shares of InterDigital by 104.7% during the 1st quarter. Renaissance Technologies LLC now owns 66,098 shares of the Wireless communications provider's stock valued at $19,962,000 after acquiring an additional 33,800 shares during the period. NewEdge Advisors LLC boosted its stake in InterDigital by 54.9% during the first quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider's stock worth $2,790,000 after acquiring an additional 3,274 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its stake in InterDigital by 2,027.6% during the fourth quarter. Hsbc Holdings PLC now owns 18,170 shares of the Wireless communications provider's stock worth $5,820,000 after acquiring an additional 17,316 shares in the last quarter. Institutional investors and hedge funds own 99.83% of the company's stock.

More InterDigital News

Here are the key news stories impacting InterDigital this week:

• Neutral Sentiment: Zacks maintained a “Hold” rating on InterDigital. The current full-year consensus estimate is $9.42 per share, close to Zacks’ revised 2026 forecast of $9.38. Zacks Research rating and estimates
• Negative Sentiment: Zacks cut its 2026 quarterly EPS forecasts to $1.62 for Q3 and $1.54 for Q4, from $1.65 and $1.59, respectively. Its full-year 2026 estimate declined from $9.45 to $9.38 per share. InterDigital 2026 earnings estimates
• Negative Sentiment: Forecasts for 2027 were also reduced: Q1 EPS fell to $2.02, Q2 to $1.98, Q3 to $2.18 and Q4 to $2.36. The full-year 2027 estimate decreased from $8.65 to $8.55 per share. InterDigital 2027 earnings estimates
• Negative Sentiment: Zacks lowered its 2028 quarterly estimates to $2.37 for Q1, $2.62 for Q2 and $2.88 for Q3. Its FY2028 forecast fell from $10.78 to $10.66 per share. While the cuts are small, the broad-based downward revisions can weigh on investor expectations and valuation. InterDigital 2028 earnings estimates

About InterDigital

InterDigital, Inc is a technology research and development company that creates advanced wireless, video and related connectivity technologies. Its work supports communications across cellular networks, including 4G and 5G, as well as Wi-Fi, the Internet of Things and other connected devices.

The company's primary business is developing intellectual property and licensing its patented technologies to manufacturers and other industry participants. Its portfolio includes innovations related to wireless communications, radio access networks, signal processing, video compression and delivery, and connected-device functionality.

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