Zacks Research Reduces Earnings Estimates for InterDigital

InterDigital, Inc. (NASDAQ:IDCC) – Zacks Research dropped their FY2026 earnings per share (EPS) estimates for shares of InterDigital in a note issued to investors on Friday, September 11th. Zacks Research analyst Team now expects that the Wireless communications provider will post earnings per share of $9.64 for the year, down from their prior forecast of $10.13. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for InterDigital’s current full-year earnings is $9.76 per share. Zacks Research also issued estimates for InterDigital’s Q4 2026 earnings at $1.73 EPS, Q2 2027 earnings at $1.97 EPS, Q3 2027 earnings at $2.20 EPS, Q4 2027 earnings at $2.32 EPS, Q1 2028 earnings at $2.37 EPS, Q2 2028 earnings at $2.63 EPS and FY2028 earnings at $10.65 EPS.

InterDigital (NASDAQ:IDCC) last announced its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $3.72. InterDigital had a net margin of 38.32% and a return on equity of 28.17%. The business had revenue of $260.17 million for the quarter, compared to analyst estimates of $143.10 million. During the same quarter last year, the business earned $6.52 earnings per share. The company’s revenue for the quarter was down 13.4% compared to the same quarter last year. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS.

Separately, Weiss Ratings cut InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, InterDigital presently has an average rating of “Buy” and an average price target of $450.00.

InterDigital Stock Performance

NASDAQ IDCC opened at $340.38 on Tuesday. The company has a debt-to-equity ratio of 0.01, a current ratio of 1.74 and a quick ratio of 1.74. The stock’s 50 day simple moving average is $311.44 and its 200-day simple moving average is $310.50. The company has a market cap of $8.78 billion, a PE ratio of 39.26 and a beta of 1.43. InterDigital has a 1-year low of $249.14 and a 1-year high of $412.60.

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 28th. Shareholders of record on Wednesday, October 14th will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a yield of 0.9%. This is an increase from InterDigital’s previous quarterly dividend of $0.70. The ex-dividend date of this dividend is Wednesday, October 14th. InterDigital’s dividend payout ratio is presently 34.60%.

Insider Buying and Selling at InterDigital

In other InterDigital news, Director Joan Gillman sold 300 shares of the firm’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $331.06, for a total value of $99,318.00. Following the completion of the sale, the director directly owned 22,736 shares of the company’s stock, valued at $7,526,980.16. This trade represents a 1.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Markley, Jr. sold 400 shares of the business’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $300.00, for a total transaction of $120,000.00. Following the transaction, the director directly owned 11,735 shares in the company, valued at approximately $3,520,500. The trade was a 3.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,200 shares of company stock worth $1,642,638 in the last three months. 3.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Keating Financial Advisory Services Inc. purchased a new stake in InterDigital in the 2nd quarter valued at about $25,000. Anchor Investment Management LLC purchased a new stake in shares of InterDigital in the 1st quarter valued at approximately $30,000. Leonteq Securities AG purchased a new stake in shares of InterDigital in the 4th quarter valued at approximately $35,000. Hantz Financial Services Inc. lifted its holdings in shares of InterDigital by 219.0% in the 4th quarter. Hantz Financial Services Inc. now owns 134 shares of the Wireless communications provider’s stock worth $43,000 after acquiring an additional 92 shares during the last quarter. Finally, Clearstead Advisors LLC boosted its position in shares of InterDigital by 52.3% during the 4th quarter. Clearstead Advisors LLC now owns 198 shares of the Wireless communications provider’s stock worth $63,000 after purchasing an additional 68 shares during the period. 99.83% of the stock is currently owned by institutional investors and hedge funds.

Key InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Zacks raised its Q2 2027 EPS forecast to $1.97 from $1.91, providing a limited positive offset to the broader revisions. The firm continues to rate InterDigital a “Strong-Buy.” Q3 EPS Estimates for InterDigital Cut by Zacks Research
• Neutral Sentiment: The current full-year analyst consensus remains $9.76 EPS, while Zacks projects fiscal 2026 EPS of $9.64 and fiscal 2028 EPS of $10.65. This indicates continued profitability and growth expectations, although Zacks’ projections are below its earlier forecasts. Q3 EPS Estimates for InterDigital Cut by Zacks Research
• Negative Sentiment: Zacks cut its fiscal 2026 EPS estimate to $9.64 from $10.13 and reduced Q4 2026 EPS to $1.73 from $2.13. It also lowered forecasts for Q3 2027 ($2.20 from $2.29), Q4 2027 ($2.32 from $2.34), Q1 2028 ($2.37 from $2.39), Q2 2028 ($2.63 from $2.68), and fiscal 2028 ($10.65 from $10.83). The concentration of downward revisions is likely the main reason InterDigital’s stock has weakened, particularly given its elevated valuation and strong recent performance. Q3 EPS Estimates for InterDigital Cut by Zacks Research

About InterDigital

InterDigital, Inc is a wireless technology research and development company that designs and develops advanced technologies used in mobile and other connected devices. Its work spans cellular communications, including 2G, 3G, 4G LTE and 5G, as well as wireless connectivity, video technologies and the Internet of Things.

The company primarily generates revenue by licensing its intellectual property to manufacturers of wireless products and other technology companies. Its portfolio includes patents and technical contributions related to wireless standards, network performance, spectrum efficiency, device connectivity and multimedia communications.