InterDigital (NASDAQ:IDCC) Updates FY 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 8.740-11.840 for the period, compared to the consensus earnings per share estimate of 9.060. The company issued revenue guidance of $675.0 million-$775.0 million, compared to the consensus revenue estimate of $633.2 million.

Analyst Upgrades and Downgrades

IDCC has been the topic of several recent research reports. UBS Group set a $425.00 target price on shares of InterDigital in a report on Monday, December 1st. Roth Capital reiterated a “buy” rating on shares of InterDigital in a research note on Tuesday. William Blair restated an “outperform” rating on shares of InterDigital in a research note on Monday, September 22nd. Jefferies Financial Group set a $475.00 target price on InterDigital and gave the company a “buy” rating in a report on Thursday, October 30th. Finally, Zacks Research cut InterDigital from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 21st. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $416.67.

InterDigital Trading Up 6.9%

IDCC stock traded up $21.36 during trading on Tuesday, hitting $330.12. 142,919 shares of the company traded hands, compared to its average volume of 271,581. The company has a debt-to-equity ratio of 0.02, a quick ratio of 1.89 and a current ratio of 1.89. InterDigital has a 1 year low of $169.87 and a 1 year high of $412.60. The company has a 50-day moving average of $335.62 and a 200-day moving average of $314.15. The firm has a market capitalization of $8.50 billion, a PE ratio of 22.29 and a beta of 1.57.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, October 30th. The Wireless communications provider reported $1.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.79 by $0.14. InterDigital had a return on equity of 51.89% and a net margin of 53.50%.The firm had revenue of $164.68 million for the quarter, compared to analysts’ expectations of $153.43 million. During the same period in the previous year, the firm earned $1.14 earnings per share. The business’s revenue was up 28.0% compared to the same quarter last year. InterDigital has set its FY 2025 guidance at 14.570-14.830 EPS and its Q4 2025 guidance at 1.380-1.630 EPS. Analysts predict that InterDigital will post 9.21 earnings per share for the current fiscal year.

InterDigital Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 28th. Investors of record on Wednesday, January 14th will be paid a dividend of $0.70 per share. The ex-dividend date of this dividend is Wednesday, January 14th. This represents a $2.80 annualized dividend and a yield of 0.8%. InterDigital’s payout ratio is presently 18.89%.

Insider Transactions at InterDigital

In related news, insider Joshua D. Schmidt sold 466 shares of the firm’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $325.34, for a total transaction of $151,608.44. Following the completion of the sale, the insider owned 27,462 shares of the company’s stock, valued at $8,934,487.08. This trade represents a 1.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Lawrence Liren Chen sold 2,975 shares of the business’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $310.82, for a total value of $924,689.50. Following the completion of the transaction, the chief executive officer owned 167,960 shares of the company’s stock, valued at $52,205,327.20. This represents a 1.74% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 28,840 shares of company stock valued at $9,609,596. 2.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC increased its holdings in shares of InterDigital by 105.0% in the second quarter. Smartleaf Asset Management LLC now owns 1,281 shares of the Wireless communications provider’s stock worth $296,000 after purchasing an additional 656 shares during the last quarter. Florida Financial Advisors LLC lifted its position in InterDigital by 51.5% in the second quarter. Florida Financial Advisors LLC now owns 1,858 shares of the Wireless communications provider’s stock worth $417,000 after buying an additional 632 shares during the last quarter. Bayesian Capital Management LP purchased a new position in shares of InterDigital during the 2nd quarter worth about $256,000. Occudo Quantitative Strategies LP bought a new position in InterDigital during the 2nd quarter valued at about $449,000. Finally, Diversify Advisory Services LLC purchased a new stake in InterDigital in the 2nd quarter worth about $573,000. 99.83% of the stock is currently owned by institutional investors.

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.