Zacks Research Increases Earnings Estimates for InterDigital

Key Points

• Zacks Research raised its FY2026 EPS estimate for InterDigital slightly to $7.42 from $7.41, and also lifted longer-term earnings forecasts through FY2028.
• InterDigital’s latest quarter beat expectations, reporting $2.57 EPS on revenue of $205.42 million versus analyst estimates of $2.54 EPS and $196.85 million in revenue.
• Analyst sentiment remains positive, with four Buy ratings and one Hold rating, giving the stock an average “Moderate Buy” rating and a $416.67 price target.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Research analysts at Zacks Research boosted their FY2026 earnings estimates for shares of InterDigital in a report released on Thursday, June 4th. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings of $7.42 per share for the year, up from their prior estimate of $7.41. The consensus estimate for InterDigital's current full-year earnings is $7.41 per share. Zacks Research also issued estimates for InterDigital's Q4 2026 earnings at $2.11 EPS, Q3 2027 earnings at $2.09 EPS, Q4 2027 earnings at $2.13 EPS, FY2027 earnings at $7.81 EPS, Q1 2028 earnings at $2.08 EPS and FY2028 earnings at $8.94 EPS.

InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The Wireless communications provider reported $2.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.54 by $0.03. The business had revenue of $205.42 million for the quarter, compared to the consensus estimate of $196.85 million. InterDigital had a net margin of 44.20% and a return on equity of 35.25%. The company's quarterly revenue was down 2.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.45 EPS. InterDigital has set its Q2 2026 guidance at 1.410-1.600 EPS and its FY 2026 guidance at 8.740-11.840 EPS.

A number of other brokerages also recently issued reports on IDCC. Weiss Ratings reissued a "buy (b)" rating on shares of InterDigital in a research report on Friday, May 1st. Wall Street Zen raised shares of InterDigital from a "sell" rating to a "hold" rating in a research report on Saturday, March 7th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of InterDigital in a research report on Wednesday, March 18th. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $416.67.

InterDigital Price Performance

Shares of InterDigital stock opened at $260.64 on Monday. 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 company's fifty day simple moving average is $303.95 and its two-hundred day simple moving average is $328.69. The company has a market cap of $6.73 billion, a P/E ratio of 24.54 and a beta of 1.43. InterDigital has a 12-month low of $213.06 and a 12-month high of $412.60.

InterDigital Dividend Announcement

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

Insider Transactions at InterDigital

In other InterDigital news, CTO Rajesh Pankaj sold 1,500 shares of the company's stock in a transaction dated Monday, April 6th. The shares were sold at an average price of $313.30, for a total transaction of $469,950.00. Following the transaction, the chief technology officer owned 72,449 shares in the company, valued at approximately $22,698,271.70. This represents a 2.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Joshua D. Schmidt sold 6,000 shares of the company's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $348.21, for a total transaction of $2,089,260.00. Following the transaction, the insider owned 25,889 shares in the company, valued at $9,014,808.69. This represents a 18.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.30% of the company's stock.

Institutional Trading of InterDigital

A number of institutional investors have recently made changes to their positions in the stock. Keybank National Association OH boosted its holdings in shares of InterDigital by 4.5% during the 1st quarter. Keybank National Association OH now owns 704 shares of the Wireless communications provider's stock valued at $213,000 after acquiring an additional 30 shares during the last quarter. Amundi boosted its holdings in shares of InterDigital by 0.3% during the 4th quarter. Amundi now owns 10,084 shares of the Wireless communications provider's stock valued at $3,210,000 after acquiring an additional 30 shares during the last quarter. Kestra Private Wealth Services LLC boosted its holdings in shares of InterDigital by 2.0% during the 4th quarter. Kestra Private Wealth Services LLC now owns 1,956 shares of the Wireless communications provider's stock valued at $623,000 after acquiring an additional 39 shares during the last quarter. MGO One Seven LLC boosted its holdings in shares of InterDigital by 5.2% during the 4th quarter. MGO One Seven LLC now owns 835 shares of the Wireless communications provider's stock valued at $266,000 after acquiring an additional 41 shares during the last quarter. Finally, J2 Capital Management Inc boosted its holdings in shares of InterDigital by 3.0% during the 1st quarter. J2 Capital Management Inc now owns 1,451 shares of the Wireless communications provider's stock valued at $438,000 after acquiring an additional 42 shares during the last quarter. Hedge funds and other institutional investors 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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