InterDigital (NASDAQ:IDCC) Issues FY 2026 Earnings Guidance

Key Points

• InterDigital raised its FY 2026 guidance to EPS of $10.85–$12.81 and revenue of $775 million–$845 million, both above analyst consensus estimates of $9.17 EPS and $700.9 million in revenue. Q3 2026 EPS guidance was set at $1.94–$2.13.
• The company’s latest quarterly results significantly exceeded expectations, with EPS of $4.62 versus the $0.90 consensus estimate, although revenue declined 13.4% year over year.
• InterDigital pays a quarterly dividend of $0.70 per share, representing an annualized $2.80 payout and a 1.1% yield. Analysts maintain a “Moderate Buy” consensus, with an average price target of $416.67.

InterDigital (NASDAQ:IDCC - Get Free Report) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) 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

Separately, Weiss Ratings lowered shares of 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 company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $416.67.

InterDigital Price Performance

NASDAQ:IDCC opened at $261.14 on Thursday. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.01. InterDigital has a 12 month low of $229.51 and a 12 month high of $412.60. The business's 50-day moving average is $268.96 and its 200 day moving average is $311.08. The company has a market capitalization of $6.75 billion, a P/E ratio of 24.59 and a beta of 1.42.

InterDigital (NASDAQ:IDCC - Get Free Report) last announced its quarterly earnings results 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%. InterDigital's revenue for the quarter was down 13.4% on a year-over-year basis. During the same period in the previous year, the firm earned $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 research analysts forecast that InterDigital will post 7.41 earnings per share for the current fiscal year.

InterDigital Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 22nd. Investors of record on Wednesday, July 8th were paid a dividend of $0.70 per share. The ex-dividend date of this dividend was Wednesday, July 8th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.1%. InterDigital's payout ratio is currently 26.37%.

Insider Transactions at InterDigital

In other news, Director Derek K. Aberle sold 522 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $276.64, for a total transaction of $144,406.08. Following the completion of the sale, the director directly owned 7,620 shares of the company's stock, valued at approximately $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Jr. Markley sold 400 shares of the business's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total transaction of $120,000.00. Following the completion of the sale, the director directly owned 11,735 shares of the company's stock, valued at approximately $3,520,500. This trade represents a 3.30% 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. In the last 90 days, insiders sold 5,872 shares of company stock valued at $1,654,159. Company insiders own 3.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in IDCC. Invesco Ltd. raised its position 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 raised its holdings 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 valued at $1,109,000 after acquiring an additional 316 shares during the last quarter. First Citizens Bank & Trust Co. purchased a new stake in shares of InterDigital during the fourth quarter worth $940,000. EP Wealth Advisors LLC purchased a new stake in InterDigital during the 4th quarter valued at about $318,000. Finally, Mackenzie Financial Corp boosted its stake in InterDigital by 45.7% during the fourth quarter. Mackenzie Financial Corp now owns 6,633 shares of the Wireless communications provider's stock worth $2,152,000 after buying an additional 2,079 shares during the last quarter. 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.

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