Zacks Research Lowers Earnings Estimates for InterDigital

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for InterDigital to $1.93 from $2.05 and maintains a "Hold" rating, while the consensus full‑year EPS estimate is $9.21.
• InterDigital recently beat quarterly EPS expectations ($2.12 vs. $1.65) despite revenue falling 37.4% year‑over‑year, and issued Q1 2026 guidance of $2.39–$2.68 EPS.
• Analyst sentiment remains mildly positive with an average rating of "Moderate Buy" and a consensus target of $416.67; the stock trades near $364 with a $9.35B market cap, very high institutional ownership (99.83%), and recent insider selling.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Equities research analysts at Zacks Research cut their Q3 2026 earnings per share estimates for shares of InterDigital in a research note issued on Monday, March 9th. Zacks Research analyst Team now forecasts that the Wireless communications provider will post earnings per share of $1.93 for the quarter, down from their prior forecast of $2.05. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for InterDigital's current full-year earnings is $9.21 per share. Zacks Research also issued estimates for InterDigital's Q1 2027 earnings at $1.79 EPS and Q3 2027 earnings at $2.18 EPS.

A number of other brokerages have also issued reports on IDCC. UBS Group set a $425.00 target price on InterDigital in a research report on Monday, December 1st. Roth Mkm reissued a "buy" rating on shares of InterDigital in a report on Tuesday, January 20th. Weiss Ratings cut shares of InterDigital from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Monday, December 29th. Finally, Wall Street Zen raised shares of InterDigital from a "sell" rating to a "hold" rating in a report on Saturday. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $416.67.

InterDigital Stock Up 1.9%

Shares of IDCC opened at $363.77 on Tuesday. The firm has a market cap of $9.35 billion, a P/E ratio of 30.49 and a beta of 1.57. InterDigital has a 12 month low of $180.60 and a 12 month high of $412.60. The stock's 50 day moving average is $341.13 and its two-hundred day moving average is $340.67. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.01.

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

Institutional Trading of InterDigital

Several large investors have recently added to or reduced their stakes in IDCC. Price T Rowe Associates Inc. MD grew its stake in shares of InterDigital by 62.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,222,111 shares of the Wireless communications provider's stock valued at $707,477,000 after buying an additional 854,845 shares during the period. Norges Bank purchased a new position in shares of InterDigital during the fourth quarter worth $128,918,000. Wedge Capital Management L L P NC purchased a new position in InterDigital during the 3rd quarter valued at about $67,282,000. Geode Capital Management LLC boosted its stake in shares of InterDigital by 18.6% in the fourth quarter. Geode Capital Management LLC now owns 787,546 shares of the Wireless communications provider's stock valued at $251,250,000 after purchasing an additional 123,686 shares during the period. Finally, M&T Bank Corp boosted its position in InterDigital by 14,563.6% in the 4th quarter. M&T Bank Corp now owns 109,244 shares of the Wireless communications provider's stock valued at $34,781,000 after buying an additional 108,499 shares during the period. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at InterDigital

In other news, Director John A. Kritzmacher sold 1,250 shares of the firm's stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $331.00, for a total value of $413,750.00. Following the transaction, the director owned 15,815 shares in the company, valued at $5,234,765. This trade represents a 7.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Richard Brezski sold 6,981 shares of InterDigital stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $330.49, for a total value of $2,307,150.69. Following the completion of the sale, the chief financial officer directly owned 83,374 shares in the company, valued at $27,554,273.26. This represents a 7.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 44,054 shares of company stock valued at $14,688,067 over the last quarter. 2.30% of the stock is currently owned by insiders.

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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