InterDigital (NASDAQ:IDCC) Posts Earnings Results, Beats Estimates By $0.47 EPS

InterDigital (NASDAQ:IDCC) released its quarterly earnings data on Thursday. The Wireless communications provider reported $2.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.65 by $0.47, FiscalAI reports. The business had revenue of $158.23 million for the quarter, compared to the consensus estimate of $155.57 million. InterDigital had a return on equity of 51.89% and a net margin of 53.50%.The company’s revenue was down 37.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.15 EPS. InterDigital updated its Q1 2026 guidance to 2.390-2.680 EPS.

Here are the key takeaways from InterDigital’s conference call:

• Reported record 2025 results with full‑year revenue of $834M, ARR up 24% to $582M, record Adjusted EBITDA of $589M and non‑GAAP EPS of $15.31, and issued 2026 guidance for another strong year (revenue $675M–$775M).
• Strong licensing momentum across smartphones and CE/IoT — new smartphone deals (Vivo, Honor), Samsung extended to 2030, Xiaomi renewed, now licensing 8 of the top 10 vendors (~85% market), plus CE deals with HP and LG and over 50 CE licenses (> $4.6B total contract value since 2021).
• Multi‑jurisdiction enforcement campaign against streaming services (Disney+ injunctions in Brazil and Germany) and newly launched actions vs Amazon; litigation costs were elevated (~$19M in Q4) and management expects higher litigation expense and outcome uncertainty in 2026.
• Bolstered R&D and AI capabilities with the acquisition of Deep Render, leadership roles in 6G/AI standards work, and portfolio growth to over 38,000 patents/applications, reinforcing long‑term licensing strength.
• ARR dipped entering 2026 after roughly $90–$92M of expirations; management has renewed about two‑thirds and expects further renewals/new agreements to restore ARR, but Q1 guidance excludes potential new deals or arbitration outcomes.

InterDigital Trading Up 12.7%

Shares of IDCC traded up $39.99 during mid-day trading on Thursday, reaching $353.86. The company had a trading volume of 349,377 shares, compared to its average volume of 285,474. The firm has a fifty day simple moving average of $331.41 and a 200-day simple moving average of $322.07. InterDigital has a fifty-two week low of $180.60 and a fifty-two week high of $412.60. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 0.02. The stock has a market cap of $9.11 billion, a price-to-earnings ratio of 23.85 and a beta of 1.58.

InterDigital Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 28th. Stockholders of record on Wednesday, January 14th were given a $0.70 dividend. The ex-dividend date of this dividend was Wednesday, January 14th. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.8%. InterDigital’s payout ratio is currently 18.89%.

Analyst Ratings Changes

IDCC has been the topic of several analyst reports. Jefferies Financial Group set a $475.00 target price on InterDigital and gave the company a “buy” rating in a research note on Thursday, October 30th. Weiss Ratings lowered InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a report on Monday, December 29th. Zacks Research downgraded shares of InterDigital from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 21st. Roth Mkm reissued a “buy” rating on shares of InterDigital in a research note on Tuesday, January 20th. Finally, UBS Group set a $425.00 target price on InterDigital in a research report on Monday, December 1st. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $416.67.

Insider Buying and Selling

In related news, CEO Lawrence Liren Chen sold 5,958 shares of the business’s stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $327.62, for a total value of $1,951,959.96. Following the transaction, the chief executive officer owned 153,077 shares in the company, valued at approximately $50,151,086.74. The trade was a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Joshua D. Schmidt sold 466 shares of the firm’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $325.34, for a total transaction of $151,608.44. Following the completion of the transaction, the insider owned 27,462 shares in the company, valued at approximately $8,934,487.08. The trade was a 1.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 36,307 shares of company stock valued at $11,905,598. 2.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of IDCC. CIBC Private Wealth Group LLC raised its position in InterDigital by 16.5% during the third quarter. CIBC Private Wealth Group LLC now owns 860 shares of the Wireless communications provider’s stock valued at $297,000 after acquiring an additional 122 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new stake in InterDigital in the 3rd quarter valued at approximately $954,000. Coldstream Capital Management Inc. bought a new stake in InterDigital in the 3rd quarter valued at $283,000. Danske Bank A S acquired a new position in InterDigital in the 3rd quarter valued at approximately $104,000. Finally, Abel Hall LLC acquired a new stake in InterDigital during the third quarter worth $289,000. 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.