InterDigital (NASDAQ:IDCC) Releases FY 2026 Earnings Guidance

InterDigital (NASDAQ:IDCC) updated its FY 2026 earnings guidance on Tuesday. 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.

InterDigital Trading Up 5.5%

Shares of IDCC stock opened at $325.88 on Wednesday. The firm has a market capitalization of $8.39 billion, a P/E ratio of 21.99 and a beta of 1.57. InterDigital has a 1 year low of $169.87 and a 1 year high of $412.60. The firm’s fifty day simple moving average is $334.71 and its 200 day simple moving average is $314.87. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 0.02.

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

InterDigital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 28th. Investors of record on Wednesday, January 14th will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, January 14th. InterDigital’s dividend payout ratio is presently 18.89%.

Analyst Ratings Changes

A number of research firms have weighed in on IDCC. UBS Group set a $425.00 price target on shares of InterDigital in a research note on Monday, December 1st. Weiss Ratings cut shares of InterDigital from a “buy (a-)” rating to a “buy (b+)” rating in a research note on Monday, December 29th. Zacks Research lowered InterDigital from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 21st. Roth Capital reiterated a “buy” rating on shares of InterDigital in a research report on Tuesday. Finally, Jefferies Financial Group set a $475.00 price objective on InterDigital and gave the company a “buy” rating in a report on Thursday, October 30th. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $416.67.

Insiders Place Their Bets

In other InterDigital news, Director John A. Kritzmacher sold 1,250 shares of the business’s stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $331.00, for a total value of $413,750.00. Following the completion of the transaction, the director directly owned 15,815 shares of the company’s stock, valued at approximately $5,234,765. The trade was a 7.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Lawrence Liren Chen sold 2,975 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $334.08, for a total transaction of $993,888.00. Following the sale, the chief executive officer directly owned 173,910 shares in the company, valued at $58,099,852.80. This trade represents a 1.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 28,840 shares of company stock worth $9,609,596 in the last three months. Company insiders own 2.30% of the company’s stock.

Institutional Trading of InterDigital

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Headlands Technologies LLC boosted its stake in shares of InterDigital by 47.9% in the 2nd quarter. Headlands Technologies LLC now owns 250 shares of the Wireless communications provider’s stock valued at $56,000 after purchasing an additional 81 shares during the last quarter. Danske Bank A S acquired a new position in shares of InterDigital in the 3rd quarter valued at $104,000. New Vernon Capital Holdings II LLC grew its stake in shares of InterDigital by 814.3% during the third quarter. New Vernon Capital Holdings II LLC now owns 320 shares of the Wireless communications provider’s stock worth $110,000 after purchasing an additional 285 shares during the period. Palisade Asset Management LLC bought a new stake in InterDigital in the third quarter valued at about $197,000. Finally, Schroder Investment Management Group bought a new position in InterDigital during the third quarter worth about $205,000. 99.83% of the stock is 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.