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InterDigital (NASDAQ:IDCC) upgraded to "strong-buy" at Zacks Research. August 1, 2026 Key points. * Zacks Research upgraded InterDigital to "strong buy" from "hold." Analysts overall rate the stock "Buy," with a consensus price target of $416.67. * InterDigital's second-quarter results substantially exceeded expectations, with EPS of $4.62 versus the $0.90 consensus and revenue of $260.17 million versus $143.10 million. Management also raised its 2026 revenue and EPS guidance. * Growth is broadening through recurring and non-smartphone licensing, including streaming, cloud, AI, IoT and automotive opportunities, though year-over-year revenue declined 13.4% and recent insider sales and valuation concerns remain risks. * Five stocks to consider instead of InterDigital. InterDigital (NASDAQ:IDCC - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports. Separately, Weiss Ratings cut InterDigital from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, June 12th. One investment analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $416.67. InterDigital trading up 0.5%. Shares of NASDAQ:IDCC opened at $304.83 on Thursday. The company has a quick ratio of 1.88, a current ratio of 1.74 and a debt-to-equity ratio of 0.06. The company's 50-day moving average price is $270.56 and its 200 day moving average price is $311.00. The company has a market cap of $7.88 billion, a PE ratio of 35.16 and a beta of 1.42. InterDigital has a fifty-two week low of $247.66 and a fifty-two week high of $412.60. InterDigital (NASDAQ:IDCC - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The Wireless communications provider reported $4.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The business had revenue of $260.17 million during the quarter, compared to the consensus estimate of $143.10 million. During the same period in the previous year, the firm posted $6.52 earnings per share. The business's revenue was down 13.4% on a year-over-year basis. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Sell-side analysts anticipate that InterDigital will post 7.41 earnings per share for the current year. Insider activity at InterDigital. In other InterDigital news, Director John A. Kritzmacher sold 365 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $276.64, for a total value of $100,973.60. Following the completion of the sale, the director owned 16,359 shares of the company's stock, valued at $4,525,553.76. The trade was a 2.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Derek K. Aberle sold 522 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $276.64, for a total value of $144,406.08. Following the completion of the transaction, the director directly owned 7,620 shares in the company, valued at $2,107,996.80. The trade was a 6.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 5,872 shares of company stock worth $1,654,159. Company insiders own 3.50% of the company's stock. Institutional trading of InterDigital. Several large investors have recently modified their holdings of IDCC. Handelsbanken Fonder AB boosted its holdings in InterDigital by 15.1% during the second quarter. Handelsbanken Fonder AB now owns 8,550 shares of the Wireless communications provider's stock valued at $2,421,000 after acquiring an additional 1,120 shares during the period. Reinhart Partners LLC. boosted its stake in InterDigital by 9.0% during the 2nd quarter. Reinhart Partners LLC. now owns 460,404 shares of the Wireless communications provider's stock valued at $130,359,000 after purchasing an additional 38,115 shares during the period. Assenagon Asset Management S.A. grew its holdings in InterDigital by 31.3% in the 2nd quarter. Assenagon Asset Management S.A. now owns 12,777 shares of the Wireless communications provider's stock valued at $3,618,000 after buying an additional 3,049 shares during the last quarter. NewEdge Advisors LLC grew its holdings in InterDigital by 54.9% in the 1st quarter. NewEdge Advisors LLC now owns 9,239 shares of the Wireless communications provider's stock valued at $2,790,000 after buying an additional 3,274 shares during the last quarter. Finally, Bank of America Corp DE increased its position in InterDigital by 31.3% in the 1st quarter. Bank of America Corp DE now owns 266,724 shares of the Wireless communications provider's stock worth $80,551,000 after buying an additional 63,524 shares during the period. 99.83% of the stock is owned by institutional investors. Key headlines impacting InterDigital. Here are the key news stories impacting InterDigital this week: * Positive Sentiment: Q2 results significantly exceeded expectations: InterDigital reported adjusted earnings of $4.62 per share versus the $0.90 consensus estimate, while revenue of $260.2 million also surpassed forecasts. Results benefited from $103.7 million in catch-up revenue and the company's first Streaming and Cloud Services agreement. InterDigital Announces Financial Results for Second Quarter 2026 * Positive Sentiment: Management raised its 2026 outlook: Full-year revenue guidance increased to $775 million-$845 million, above the roughly $701 million analyst consensus. Full-year EPS guidance of $10.85-$12.81 is also above expectations, supporting the bullish reaction. Third-quarter revenue guidance of $154 million-$158 million is broadly in line with estimates. Is IDCC Stock a Buy After Strong Earnings and Higher Revenue Guidance? * Positive Sentiment: Recurring and non-smartphone licensing are gaining traction: Annualized recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital is pursuing royalty opportunities in streaming, cloud services, artificial intelligence, IoT, automotive and other connected technologies, potentially diversifying future growth. InterDigital Is Riding AI, Streaming and IoT Licensing Growth Trends * Neutral Sentiment: Growth remains uneven: Second-quarter revenue declined 13.4% year over year, and smartphone licensing revenue and earnings were lower than in the prior-year period. The Amazon agreement covers services and devices including Prime Video, but final terms are subject to binding arbitration. * Negative Sentiment: Valuation and trading risks remain: Commentary has flagged IDCC as potentially overbought, while reported insider activity shows 43 sales and no purchases over the past six months. Investors also face legal and licensing-timing uncertainty despite the improved outlook. Top 3 Tech Stocks That Are Ticking Portfolio Bombs 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. Further reading. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider InterDigital, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and InterDigital wasn't on the list. While InterDigital currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

InterDigital reported second-quarter 2026 revenue of $260.2 million, significantly exceeding guidance of $139 million to $143 million. The wireless technology licensing company achieved record annualised recurring revenue of $625.7 million, up 13% year-over-year. Non-GAAP earnings per share reached $4.62, well above the guided range of $1.41 to $1.60. Adjusted EBITDA came in at $184.1 million with a 71% margin. The company secured a patent license agreement with Amazon covering devices and Prime Video services, with final terms to be determined through arbitration. It also won two injunctions against Disney from the European Unified Patent Court regarding HEVC video encoding patents. InterDigital raised its full-year 2026 guidance, now expecting revenue of $775 million to $845 million. The company returned $41.1 million to shareholders through share repurchases and dividends.

InterDigital reported second-quarter results exceeding its outlook, with revenue of $260.2 million, adjusted EBITDA of $184.1 million, and non-GAAP diluted earnings per share of $4.62. The results included $103.7 million in catch-up revenue and benefited from recurring licensing growth. The company raised its full-year 2026 guidance to $775 million–$845 million in revenue, $469 million–$529 million in adjusted EBITDA, and $10.85–$12.81 in non-GAAP EPS. Annualised recurring revenue reached a record $625.7 million, up 13% year over year. InterDigital secured a patent-licence agreement with Amazon covering devices and services, including Prime Video, resolving all pending litigation. Final economic terms will be determined through 18–24 months of binding arbitration.