Zacks Investment Research·1d ago
Should You Bet on IDCC After Dividend Hike Amid Macro Uncertainty?InterDigital's 7.1% dividend hike, record recurring revenues and higher 2026 guidance bolster its investment case despite volatility concerns.
InterDigital's asset-light IP licensing model generates exceptional margins (79.2% gross margin in 2026Q2) and robust cash flow, but revenue is highly lumpy due to ASC 606 catch-up payments, with TTM revenue declining 4.0% YoY despite a record $626M ARR from t...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue swings from -37.4% to +34.5% quarterly reflect ASC 606 catch-up payments, yet gross margins remain resilient at 79.2% in 2026Q2, with operating leverage amplifying EPS volatility from $1.20 to $5.35 per share.
InterDigital is a global leader in wireless, video, and AI technologies with over 50 years of innovation history, driving next-generation connectivity and communication.
Recent quarterly results show robust revenue of $205.42 million and net income of $75.33 million, alongside six new licensing agreements, indicating healthy growth.
The company's ability to secure new licensing agreements and penetrate verticals like automotive could drive an 8%-10% revenue CAGR, as per bullish projections.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 30, 2026 | $4.62+411.6% vs $0.90 | $260M+81.8% vs $143M |
Q2 2026 Apr 30, 2026 | $2.57+15.8% vs $2.22 | $205M+4.4% vs $197M |
Q1 2026 Feb 5, 2026 | $1.67+21.9% vs $1.37 | $158M+5.1% vs $151M |
Q4 2025 Oct 30, 2025 | $2.55+42.5% vs $1.79 | $165M+5.9% vs $156M |
InterDigital's 7.1% dividend hike, record recurring revenues and higher 2026 guidance bolster its investment case despite volatility concerns.
Ubiquiti, InterDigital and Unusual Machines have been highlighted in this Industry Outlook article.
Despite intense market volatility, solid demand for advanced networking architecture for increased broadband usage is driving the Zacks Wireless Equipment industry. UI, IDCC and UMAC are well-positioned to thrive despite the near-term challenges.
InterDigital's record recurring revenues, Amazon licensing deal and raised 2026 outlook bolster its case despite a modest 5.2% one-year share gain.
Benchmark IDCC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for InterDigital, Inc. (IDCC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $333.76 | $8.63B | 28.28 | -3.97% | 48.76% | 41.53% | 0.53% | |
| $198.27 | $208.18B | 39.57 | 13.66% | 21.01% | 37.33% | — | |
| $28.37 | $2.2B | -23.64 | 28.64% | -20.04% | -16.13% | — | |
| $33.36 | $929.39M | -75.82 | 2.49% | -9.48% | -3.42% | — | |
| $105.18 | $11.41B | 49.85 | 27.13% | 31.69% | 17.39% | — | |
| $5.78 | $74.87M | -7.81 | 2.05% | -16.92% | -23.77% | — |
InterDigital, Inc. (IDCC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
InterDigital, Inc. (IDCC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 30, 2026·SEC
Jun 15, 2026·SEC
Apr 30, 2026·SEC
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InterDigital, Inc. (IDCC) stock FAQ — growth, dividends, profitability & financials explained
InterDigital, Inc. (IDCC) reported $788.5M in revenue for fiscal year 2025. This represents a 1368% increase from $53.7M in 1996.
InterDigital, Inc. (IDCC) saw revenue decline by 4.0% over the past year.
Yes, InterDigital, Inc. (IDCC) is profitable, generating $302.2M in net income for fiscal year 2025 (48.8% net margin).
Yes, InterDigital, Inc. (IDCC) pays a dividend with a yield of 0.53%. This makes it attractive for income-focused investors.
InterDigital, Inc. (IDCC) has a return on equity (ROE) of 41.5%. This is excellent, indicating efficient use of shareholder capital.
InterDigital, Inc. (IDCC) generated $540.3M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
