InterDigital (NASDAQ:IDCC) Issues Q3 2026 Earnings Guidance

Key Points

• InterDigital issued Q3 2026 guidance of $1.94–$2.13 in EPS and $154.0–$158.0 million in revenue, broadly aligned with analyst expectations. Full-year 2026 EPS guidance is $10.85–$12.81.
• The company’s latest quarterly results significantly exceeded estimates, with EPS of $4.62 versus the $0.90 consensus, although quarterly revenue declined 13.4% year over year.
• InterDigital maintains a quarterly dividend of $0.70 per share, equivalent to a 1.1% yield, while analysts assign the stock a “Moderate Buy” consensus rating and an average price target of $416.67.

InterDigital (NASDAQ:IDCC - Get Free Report) updated its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 1.940-2.130 for the period, compared to the consensus EPS estimate of 2.090. The company issued revenue guidance of $154.0 million-$158.0 million, compared to the consensus revenue estimate of $157.5 million. InterDigital also updated its FY 2026 guidance to 10.850-12.810 EPS.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings lowered InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, June 12th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, InterDigital has an average rating of "Moderate Buy" and an average target price of $416.67.

InterDigital Stock Performance

NASDAQ IDCC opened at $261.14 on Thursday. The stock has a fifty day simple moving average of $268.96 and a 200-day simple moving average of $311.08. InterDigital has a twelve month low of $229.51 and a twelve month high of $412.60. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.01. The stock has a market cap of $6.75 billion, a PE ratio of 24.59 and a beta of 1.42.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.90 by $3.72. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. During the same quarter in the previous year, the company posted $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. Equities analysts anticipate that InterDigital will post 7.41 earnings per share for the current year.

InterDigital Announces Dividend

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

Insiders Place Their Bets

In related news, CTO Rajesh Pankaj sold 1,500 shares of the business's 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 sale, the chief technology officer owned 67,976 shares in the company, valued at approximately $19,441,136. The trade was a 2.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Jr. Markley sold 400 shares of the stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $300.00, for a total value of $120,000.00. Following the transaction, the director directly owned 11,735 shares in the company, valued at approximately $3,520,500. The trade was a 3.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 5,872 shares of company stock valued at $1,654,159. Insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On InterDigital

A number of hedge funds have recently added to or reduced their stakes in the company. Amundi boosted its holdings in InterDigital by 0.3% in the 4th quarter. Amundi now owns 10,084 shares of the Wireless communications provider's stock valued at $3,210,000 after purchasing an additional 30 shares in the last quarter. Abel Hall LLC lifted its holdings in shares of InterDigital by 5.0% in the 4th quarter. Abel Hall LLC now owns 879 shares of the Wireless communications provider's stock valued at $280,000 after buying an additional 42 shares during the period. Prelude Capital Management LLC boosted its stake in shares of InterDigital by 6.2% in the third quarter. Prelude Capital Management LLC now owns 955 shares of the Wireless communications provider's stock valued at $330,000 after buying an additional 56 shares in the last quarter. Townsquare Capital LLC grew its holdings in InterDigital by 9.6% during the fourth quarter. Townsquare Capital LLC now owns 651 shares of the Wireless communications provider's stock worth $207,000 after acquiring an additional 57 shares during the period. Finally, Maryland State Retirement & Pension System raised its position in InterDigital by 1.6% in the fourth quarter. Maryland State Retirement & Pension System now owns 3,769 shares of the Wireless communications provider's stock worth $1,200,000 after acquiring an additional 60 shares in the last quarter. Institutional investors and hedge funds own 99.83% of the company's stock.

InterDigital Company Profile

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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