InterDigital (NASDAQ:IDCC) Updates Q3 2025 Earnings Guidance

Key Points

• InterDigital has updated its Q3 2025 earnings guidance, projecting an EPS of $2.080-2.270, significantly higher than the consensus estimate of $1.340.
• The company has also raised its revenue guidance for the same quarter to $155 million-$159 million, compared to the consensus revenue estimate of $143.1 million.
• InterDigital announced a quarterly dividend increase from $0.60 to $0.70, with an upcoming payment date on October 22nd for investors of record on October 8th.

InterDigital (NASDAQ:IDCC - Get Free Report) updated its third quarter 2025 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of 2.080-2.270 for the period, compared to the consensus estimate of 1.340. The company issued revenue guidance of $155.0 million-$159.0 million, compared to the consensus revenue estimate of $143.1 million.

InterDigital Trading Up 3.5%

InterDigital stock traded up $11.68 during midday trading on Monday, reaching $346.49. The stock had a trading volume of 355,273 shares, compared to its average volume of 328,036. InterDigital has a twelve month low of $136.58 and a twelve month high of $360.30. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a market cap of $8.94 billion, a price-to-earnings ratio of 24.70, a PEG ratio of 1.67 and a beta of 1.42. The firm's fifty day simple moving average is $271.15 and its two-hundred day simple moving average is $233.75.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its earnings results on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.77 by $3.75. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The company had revenue of $300.60 million during the quarter, compared to analyst estimates of $167.93 million. During the same quarter in the prior year, the company earned $4.57 earnings per share. The company's revenue for the quarter was up 34.5% on a year-over-year basis. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS. Equities analysts anticipate that InterDigital will post 9.21 EPS for the current fiscal year.

InterDigital Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Wednesday, October 8th will be paid a dividend of $0.70 per share. This is a boost from InterDigital's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Wednesday, October 8th. This represents a $2.80 annualized dividend and a yield of 0.8%. InterDigital's dividend payout ratio (DPR) is presently 17.11%.

Analysts Set New Price Targets

Separately, Roth Capital increased their price target on shares of InterDigital from $270.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. One research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $350.00.

Insider Activity at InterDigital

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of the company's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $289.78, for a total transaction of $289,780.00. Following the completion of the sale, the chief technology officer owned 66,122 shares of the company's stock, valued at $19,160,833.16. This represents a 1.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joshua D. Schmidt sold 466 shares of the firm's stock in a transaction on Friday, August 29th. The shares were sold at an average price of $273.12, for a total transaction of $127,273.92. Following the completion of the transaction, the insider owned 28,370 shares in the company, valued at $7,748,414.40. The trade was a 1.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 3,932 shares of company stock valued at $1,010,930. Corporate insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On InterDigital

Several hedge funds have recently made changes to their positions in the stock. Headlands Technologies LLC raised its stake in shares of InterDigital by 47.9% in the second quarter. Headlands Technologies LLC now owns 250 shares of the Wireless communications provider's stock valued at $56,000 after acquiring an additional 81 shares during the last quarter. Bayesian Capital Management LP bought a new position in InterDigital in the 2nd quarter valued at $256,000. Smartleaf Asset Management LLC boosted its stake in InterDigital by 105.0% in the second quarter. Smartleaf Asset Management LLC now owns 1,281 shares of the Wireless communications provider's stock worth $296,000 after purchasing an additional 656 shares in the last quarter. Florida Financial Advisors LLC raised its holdings in shares of InterDigital by 35.1% in the second quarter. Florida Financial Advisors LLC now owns 1,656 shares of the Wireless communications provider's stock valued at $371,000 after buying an additional 430 shares during the last quarter. Finally, Occudo Quantitative Strategies LP bought a new stake in InterDigital during the 2nd quarter worth about $449,000. Institutional investors own 99.83% of the company's stock.

About InterDigital

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.