Zacks Research Predicts Weaker Earnings for InterDigital

InterDigital, Inc. (NASDAQ:IDCC) – Zacks Research decreased their Q3 2026 earnings per share estimates for InterDigital in a report released on Friday, October 9th. Zacks Research analyst Team now anticipates that the Wireless communications provider will post earnings per share of $1.65 for the quarter, down from their prior estimate of $1.68. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for InterDigital’s current full-year earnings is $9.42 per share. Zacks Research also issued estimates for InterDigital’s Q4 2026 earnings at $1.59 EPS, FY2026 earnings at $9.45 EPS, Q1 2027 earnings at $2.04 EPS, Q2 2027 earnings at $2.01 EPS, Q3 2027 earnings at $2.21 EPS, Q4 2027 earnings at $2.39 EPS, FY2027 earnings at $8.65 EPS, Q1 2028 earnings at $2.40 EPS, Q2 2028 earnings at $2.65 EPS, Q3 2028 earnings at $2.91 EPS and FY2028 earnings at $10.78 EPS.

Separately, Weiss Ratings upgraded shares of InterDigital from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $450.00.

InterDigital Trading Down 2.1%

IDCC opened at $325.86 on Tuesday. The firm has a market capitalization of $8.41 billion, a P/E ratio of 37.58 and a beta of 1.43. The firm’s 50 day moving average is $335.65 and its 200-day moving average is $307.02. InterDigital has a 52-week low of $249.14 and a 52-week high of $412.60. The company has a quick ratio of 1.74, a current ratio of 1.74 and a debt-to-equity ratio of 0.01.

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

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 issued a dividend of $0.75 per share. The ex-dividend date of this dividend is Wednesday, October 14th. This represents a $3.00 annualized dividend and a yield of 0.9%. This is an increase from InterDigital’s previous quarterly dividend of $0.70. InterDigital’s dividend payout ratio (DPR) is 32.30%.

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 shares were sold at an average price of $331.06, for a total transaction of $99,318.00. Following the completion of the transaction, 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 at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Rajesh Pankaj sold 1,500 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $324.88, for a total transaction of $487,320.00. Following the completion of the sale, the chief technology officer directly owned 66,516 shares of the company’s stock, valued at $21,609,718.08. The trade was a 2.21% 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. Over the last three months, insiders have sold 4,800 shares of company stock valued at $1,595,118. 3.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On InterDigital

Several large investors have recently modified their holdings of IDCC. Bank of America Corp DE acquired a new stake in InterDigital in the second quarter worth approximately $46,953,000. Royal Bank of Canada boosted its stake in InterDigital by 375.7% during the 1st quarter. Royal Bank of Canada now owns 199,655 shares of the Wireless communications provider’s stock valued at $60,297,000 after purchasing an additional 157,687 shares in the last quarter. Neumeier Poma Investment Counsel LLC bought a new position in InterDigital during the 2nd quarter valued at $42,350,302. Arrowstreet Capital Limited Partnership boosted its stake in InterDigital by 135.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 219,388 shares of the Wireless communications provider’s stock valued at $66,255,000 after purchasing an additional 126,328 shares in the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of InterDigital by 2,700.1% during the 4th quarter. Pacer Advisors Inc. now owns 68,659 shares of the Wireless communications provider’s stock valued at $21,860,000 after purchasing an additional 66,207 shares during the period. Institutional investors own 99.83% of the company’s stock.

Key InterDigital News

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Zacks maintains a “Strong-Buy” rating and raises longer-term forecasts. Zacks Research increased its EPS estimates for fiscal 2027 to $8.65 from $8.49 and fiscal 2028 to $10.78 from $10.65. It also lifted estimates for several 2027 and 2028 quarters, suggesting improved longer-term earnings expectations. Zacks Research estimates for InterDigital
• Positive Sentiment: HDR research highlights potential technology and licensing opportunities. A report from InterDigital and Parks Associates says High Dynamic Range is evolving into a standard feature across streaming, televisions, smartphones, gaming and live events. Wider HDR adoption, AI-assisted video enhancement, cloud production and next-generation codecs could strengthen InterDigital’s relevance in video technology and create future licensing opportunities. New Research Reveals HDR is Foundational to Premium Video
• Neutral Sentiment: Third-quarter results are scheduled for October 29. InterDigital will report its third-quarter 2026 financial results before the market opens, giving investors a near-term catalyst to assess licensing revenue, earnings and updated guidance. InterDigital Announces Date for Third Quarter 2026 Financial Results
• Negative Sentiment: Near-term EPS estimates were reduced. Zacks lowered its third-quarter 2026 EPS forecast to $1.65 from $1.68, fourth-quarter 2026 EPS to $1.59 from $1.73, and full-year 2026 EPS to $9.45 from $9.64. These cuts may be weighing on sentiment ahead of the earnings report, even though the firm remains bullish over the longer term.
• Negative Sentiment: Recent insider activity provides an additional overhang. Reported insider transactions show sales without purchases during the past six months, while second-quarter revenue of $260.2 million declined approximately 13.5% year over year. These signals may increase investor caution around near-term business momentum.

InterDigital Company Profile

InterDigital, Inc is a research and development company that designs and develops advanced wireless, video and related technologies. Its work supports cellular communications, including 2G, 3G, 4G and 5G networks, as well as Wi-Fi, video coding, artificial intelligence and other connected-device applications. The company’s technologies are incorporated into mobile phones, network equipment, consumer electronics and other wireless products.

InterDigital primarily commercializes its innovations through a patent-licensing business.