Zacks Research Forecasts Lower Earnings for InterDigital

Key Points

• Zacks Research lowered Q2 2026 EPS for InterDigital to $1.66 (from $1.67) and issued updated multi-quarter estimates while the consensus full‑year EPS remains $9.21.
• InterDigital recently beat quarterly EPS ($2.12 vs. $1.65 consensus) but reported a 37.4% year‑over‑year revenue decline, underscoring the lumpy nature of its licensing revenue.
• The company declared a $0.70 quarterly dividend (annualized $2.80, ~0.8% yield) and holds a consensus analyst rating of Moderate Buy with a $416.67 target while the stock trades near $349.58.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Equities research analysts at Zacks Research dropped their Q2 2026 earnings per share estimates for InterDigital in a research report issued on Thursday, April 9th. Zacks Research analyst Team now anticipates that the Wireless communications provider will earn $1.66 per share for the quarter, down from their prior forecast of $1.67. The consensus estimate for InterDigital's current full-year earnings is $9.21 per share. Zacks Research also issued estimates for InterDigital's Q3 2026 earnings at $1.89 EPS, Q3 2027 earnings at $2.22 EPS, Q4 2027 earnings at $1.29 EPS, FY2027 earnings at $7.47 EPS and Q1 2028 earnings at $1.99 EPS.

InterDigital (NASDAQ:IDCC - Get Free Report) last posted its earnings results on Thursday, February 5th. The Wireless communications provider reported $2.12 earnings per share for the quarter, beating analysts' consensus estimates of $1.65 by $0.47. InterDigital had a return on equity of 41.09% and a net margin of 48.76%.The company had revenue of $158.23 million for the quarter, compared to the consensus estimate of $155.57 million. During the same quarter in the prior year, the company earned $5.15 earnings per share. InterDigital's revenue was down 37.4% on a year-over-year basis. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS.

A number of other research firms also recently weighed in on IDCC. Weiss Ratings downgraded InterDigital from a "buy (a-)" rating to a "buy (b+)" rating in a report on Monday, December 29th. Roth Mkm reissued a "buy" rating on shares of InterDigital in a report on Tuesday, January 20th. Jefferies Financial Group reissued a "buy" rating on shares of InterDigital in a report on Wednesday, March 18th. Finally, Wall Street Zen raised InterDigital from a "sell" rating to a "hold" rating in a report on Saturday, March 7th. Four analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, InterDigital currently has an average rating of "Moderate Buy" and a consensus target price of $416.67.

InterDigital Stock Up 1.3%

IDCC stock opened at $349.58 on Friday. InterDigital has a fifty-two week low of $181.05 and a fifty-two week high of $412.60. The business's 50-day moving average is $345.26 and its two-hundred day moving average is $345.31. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.84 and a current ratio of 1.84. The company has a market cap of $8.98 billion, a price-to-earnings ratio of 29.30 and a beta of 1.66.

InterDigital Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 22nd. Shareholders of record on Wednesday, April 8th will be given a $0.70 dividend. The ex-dividend date is Wednesday, April 8th. This represents a $2.80 dividend on an annualized basis and a yield of 0.8%. InterDigital's dividend payout ratio is presently 23.47%.

Insiders Place Their Bets

In other InterDigital news, Director Joan H. Gillman sold 325 shares of the company's stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $352.24, for a total value of $114,478.00. Following the completion of the sale, the director owned 22,036 shares in the company, valued at $7,761,960.64. This represents a 1.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Joshua D. Schmidt sold 6,000 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $348.21, for a total value of $2,089,260.00. Following the completion of the sale, the insider owned 25,889 shares of the company's stock, valued at approximately $9,014,808.69. The trade was a 18.82% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 30,905 shares of company stock valued at $10,452,819. 2.80% of the stock is currently owned by corporate insiders.

Institutional Trading of InterDigital

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Kemnay Advisory Services Inc. purchased a new stake in InterDigital in the fourth quarter worth about $26,000. Root Financial Partners LLC purchased a new stake in InterDigital in the third quarter worth about $30,000. Aster Capital Management DIFC Ltd increased its position in InterDigital by 186.8% in the third quarter. Aster Capital Management DIFC Ltd now owns 109 shares of the Wireless communications provider's stock worth $38,000 after buying an additional 71 shares in the last quarter. Leonteq Securities AG purchased a new stake in InterDigital in the fourth quarter worth about $35,000. Finally, Financial Consulate Inc. purchased a new stake in InterDigital in the fourth quarter worth about $41,000. Hedge funds and other institutional investors own 99.83% of the company's stock.

InterDigital News Summary

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Zacks Research raised multiple future-period earnings estimates (modest bumps to Q4 2026, Q2 2027, Q4 2027, FY2027 and FY2028 and Q1 2028), which supports a stronger multi-quarter outlook and likely helped sentiment around IDCC today.
• Positive Sentiment: The company recently declared a quarterly dividend ($0.70; ex-dividend/record dates noted in recent filings), providing yield and reinforcing capital-return discipline that can attract income-focused investors.
• Positive Sentiment: Institutional buying and large holdings (notable increases by several funds) and a consensus analyst price target above current levels signal continued institutional support and upside expectations for the stock.
• Neutral Sentiment: CTO Rajesh Pankaj sold 1,500 shares under a pre-arranged Rule 10b5-1 plan (transaction disclosed). Because this was executed under a trading plan and represents a small percentage of his holdings, the move is broadly neutral but noted by investors. Insider trade alert
• Negative Sentiment: A recent note (Apr 9) reported Zacks lowered its Q2 EPS estimate — a reminder that quarterly licensing revenue can swing and short‑term EPS expectations remain subject to revision. This downgrade counters some of the earlier modest estimate raises and adds near-term uncertainty. Q2 EPS Estimates Lowered
• Negative Sentiment: InterDigital's most recent quarterly results showed a large year-over-year revenue decline (licensing cycles can be lumpy); while EPS beat and margin metrics remain strong, the revenue volatility is a key risk to watch and can drive intra‑quarter price swings.

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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