InterDigital (NASDAQ:IDCC) Stock Price Up 10.6% Following Strong Earnings

InterDigital, Inc. (NASDAQ:IDCC)’s stock price rose 10.6% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $350.20 and last traded at $347.2250. Approximately 108,839 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 272,625 shares. The stock had previously closed at $313.87.

The Wireless communications provider reported $2.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.47. The company had revenue of $158.23 million for the quarter, compared to the consensus estimate of $155.57 million. InterDigital had a net margin of 48.76% and a return on equity of 41.09%. InterDigital’s revenue for the quarter was down 37.4% on a year-over-year basis. During the same period last year, the firm posted $5.15 EPS. InterDigital has set its Q1 2026 guidance at 2.390-2.680 EPS.

InterDigital Dividend Announcement

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

Trending Headlines about InterDigital

Here are the key news stories impacting InterDigital this week:

• Positive Sentiment: Q4 results beat expectations: IDCC reported $2.12 EPS vs. consensus $1.65 and slightly beat revenue estimates; management highlighted record annualized recurring revenue and all‑time highs in net income, adjusted EBITDA, non‑GAAP EPS and free cash flow — evidence of strengthening recurring licensing streams. InterDigital Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Raised near‑term guidance: IDCC set Q1 2026 EPS guidance of $2.39–$2.68 (above consensus) and revenue guidance of $194–$200M (well above consensus), giving investors a clearer path to sustained revenue and profit — a primary driver of today’s upside. View Press Release
• Positive Sentiment: LG deal and narrative shift: Commentary and analyst notes point to the LG licensing deal and the company’s 2026 outlook as changing market perception — moving focus from lump‑sum, lumpy payments to recurring licensing and streaming upside. This appears to be supporting investor optimism. Why The Narrative Around InterDigital (IDCC) Is Shifting After The LG Deal And 2026 Outlook
• Positive Sentiment: Analyst bullishness: A William Blair analyst reiterated a Buy rating citing undervalued IP leadership, recurring licensing strength and unpriced streaming upside — reinforcing the positive sentiment among institutional investors. InterDigital: Undervalued IP Leader with Recurring Licensing Strength and Unpriced Streaming Upside Justifying a Buy Rating
• Neutral Sentiment: Detailed disclosures and investor materials: The earnings slide deck and presentations provide more color on recurring revenue growth, strategy and legal posture — useful for investors digging into sustainability of licensing streams and streaming monetization potential. InterDigital, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Earnings call transcripts provide management commentary on licensing cadence, legal challenges and product roadmap; useful for assessing execution risk vs. the new recurring revenue story. InterDigital, Inc. (IDCC) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue compression and one‑off timing effects: Annual revenue was down ~37% Y/Y in the quarter; Zacks notes a sharp drop in catch‑up fees tied to OPPO and Lenovo deals that reduced sales and earnings versus last year — a reminder that some revenue is lumpy and can swing results. InterDigital Beats Q4 Earnings Estimates Despite Lower Y/Y Revenues
• Negative Sentiment: Governance risk: InterDigital disclosed anti‑takeover provisions that TipRanks flags as a governance risk which could limit shareholder value upside and influence activist or strategic scenarios — a potential longer‑term drag on valuation for some investors. InterDigital’s Anti‑Takeover Provisions Pose Governance Risk and Potentially Limit Shareholder Value Upside

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In other InterDigital news, CEO Lawrence Liren Chen sold 5,958 shares of InterDigital stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $327.62, for a total transaction of $1,951,959.96. Following the completion of 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 sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Richard Brezski sold 5,002 shares of the company’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $324.08, for a total transaction of $1,621,048.16. Following the completion of the sale, the chief financial officer directly owned 78,372 shares in the company, valued at $25,398,797.76. This trade represents a 6.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 36,307 shares of company stock worth $11,905,598. 2.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On InterDigital

Several hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new stake in shares of InterDigital in the second quarter valued at $71,200,000. Wedge Capital Management L L P NC acquired a new position in InterDigital in the 3rd quarter valued at about $67,282,000. M&T Bank Corp lifted its holdings in InterDigital by 14,563.6% in the 4th quarter. M&T Bank Corp now owns 109,244 shares of the Wireless communications provider’s stock valued at $34,781,000 after purchasing an additional 108,499 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of InterDigital by 303.1% during the 2nd quarter. Empowered Funds LLC now owns 143,406 shares of the Wireless communications provider’s stock worth $32,156,000 after purchasing an additional 107,828 shares during the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in shares of InterDigital by 36.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 309,663 shares of the Wireless communications provider’s stock worth $69,433,000 after purchasing an additional 83,221 shares during the last quarter. Hedge funds and other institutional investors own 99.83% of the company’s stock.

InterDigital Trading Up 7.5%

The business’s fifty day moving average price is $331.39 and its 200 day moving average price is $323.23. The company has a quick ratio of 1.89, a current ratio of 1.84 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $9.56 billion, a PE ratio of 31.10 and a beta of 1.58.

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.