IDCC

InterDigital, Inc. (NASDAQ:IDCC) is one of the 9 Most Profitable Tech Stocks to Buy Right Now. On April 30, InterDigital, Inc. (NASDAQ:IDCC) reported first quarter 2026 figures topped guidance, reporting revenue, adjusted EBITDA, and EPS above internal targets while reaffirming full year outlook. CEO Liren Chen said the company signed six agreements, including a Xiaomi renewal. He added that those deals pushed performance beyond expectations and extended licensing momentum. The company posted annualized recurring revenue rising 13% YoY to $567.2 million, with smartphone ARR soaring by 18% to $491.8 million. InterDigital, Inc. (NASDAQ:IDCC) reported $63.6 million in catch-up revenue. The firm also noted that operating expenses rose $44.5 million due to higher revenue-sharing costs tied to the LG agreement and higher IP enforcement spending. Chen revealed that the cumulative contract value reached $4.7 billion over five years, stating the firm now licenses the top three smartphone vendors through the decade end. The company said it reaffirmed 2026 guidance and projected second-quarter revenue of $139 million to $143 million, alongside full-year revenue of $675 million to $775 million. InterDigital, Inc. (NASDAQ:IDCC) is a global research and development corporation dealing with wireless, video, artificial intelligence, and related technologies. It is primarily engaged in the creation and development of communications and entertainment products and services. While we acknowledge the potential of IDCC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

InterDigital, Inc.'s (NASDAQ:IDCC) earnings announcement last week didn't impress shareholders. However, our analysis suggests that the soft headline numbers are getting counterbalanced by some positive underlying factors. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". For the year to March 2026, InterDigital had an accrual ratio of -0.33. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of US$522m in the last year, which was a lot more than its statutory profit of US$366.4m. InterDigital shareholders are no doubt pleased that free cash flow improved over the last twelve months. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, InterDigital's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think InterDigital's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! Better yet, its EPS are growing strongly, which is nice to see. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider...

In late April 2026, InterDigital reported first‑quarter revenue of US$205.42 million and net income of US$75.33 million, with GAAP diluted EPS of US$2.14, alongside six new licensing agreements and renewed deals with major manufacturers such as Xiaomi, LG, and Sony. Management also highlighted record smartphone annualized recurring revenue covering roughly 85% of the global market and reaffirmed full‑year 2026 guidance, underpinned by ongoing patent enforcement successes including injunctions against companies like Disney and Tencent. Next, we will examine how this licensing‑driven earnings beat and reinforced guidance may influence InterDigital's existing investment narrative. We've uncovered the 13 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To be comfortable owning InterDigital, you have to believe in its ability to convert a deep wireless and video patent portfolio into durable, high‑margin, recurring licensing cash flows across smartphones and adjacent devices. The latest quarter supports that narrative in the near term, with revenue and EPS both above guidance and record smartphone ARR, but also flags a key short term risk: higher operating expenses and ongoing litigation costs that pressured year‑on‑year profitability. Among recent announcements, the expansion of licensing in TVs and displays through new agreements with LG and Sony looks especially relevant. These deals tie directly into the same licensing engine that drove the Q1 earnings beat, reinforcing the idea that InterDigital’s most important catalyst remains broadening coverage beyond smartphones into consumer electronics, even as investors weigh the risk that rising enforcement and R&D spending could limit how much of that additional revenue flows through to earnings. But against this positive licensing momentum, the rising expense base and heavier reliance on enforcement are signals investors should be aware of as they think about... Read the full narrative on InterDigital (it's free!) InterDigital's narrative projects $1.0 billion revenue and $490.5 million earnings by 2029. Uncover how InterDigital's forecasts yield a $462.67 fair value, a 59% upside to its current price. Some of the highest analysts were already banking on roughly US$1.0 billion of revenue and nearly US$488 million of earnings by 2029, which is far more optimistic than cons...

Achieved record smartphone Annualized Recurring Revenue (ARR) of $492 million, driven by the strategic renewal of the Xiaomi license through bilateral negotiation. Secured a 100% success rate in recent patent injunction proceedings, winning six out of six cases against major players like Disney and Tencent to defend IP value. Consolidated market leadership by licensing eight of the top 10 global smartphone manufacturers, representing approximately 85% of the total market. Expanded the consumer electronics footprint through a new license with LG Electronics via a joint TV licensing program with Sony, emphasizing the 'IP-as-a-service' model. Maintained a competitive edge in future technology cycles by holding multiple chair positions in 3GPP, positioning the firm to lead 6G standard development for 2029 deployment. Pivoted research focus toward high-growth adjacencies, including AI-native networks and haptic technology for immersive video and gaming experiences. Projected Q2 revenue of $139 million to $143 million based strictly on existing contracts, with potential upside from pending enforcement actions or new deals. Anticipates 6G standards will be finalized in 2029, with wide commercial deployment and rapid adoption expected to begin in 2030. Utilizing 'hybrid' licensing agreements that combine guaranteed fixed fees with royalty upsides to mitigate market volume uncertainty while capturing growth. Expects strong cash flow in Q2 driven by the collection of $139 million in new accounts receivable generated from Q1 licensing successes. Maintains full-year guidance based on a 'multi-path approach' that accounts for various combinations of new license signings and litigation outcomes. Incurred higher licensing expenses in Q1 due to revenue-share obligations tied to significant catch-up revenue from the new LG agreement. Launched new multi-jurisdictional enforcement actions against TCL and Hisense, signaling a shift toward litigation for major unlicensed TV manufacturers. Successfully renewed approximately two-thirds of the license contracts that have expired so far from the group set to expire at the end of 2025. Promotion to the S&P MidCap index reflects sustained growth and a strengthened balance sheet with over $1 billion in cash and short-term investments. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest...

(Bloomberg) -- Apple Inc. reports quarterly earnings after the close on Thursday, but investors will be largely looking past the numbers and seeking clues to incoming Chief Executive Officer John Ternus’ strategic plans. Most Read from Bloomberg US Seeks to Deploy Hypersonic Missile for the First Time Against Iran North Korea Confirms Suicide Rule for Soldiers Ukraine Captures Two NJ Malls Separated by Just Four Miles — and Very Different Fates Junior Bankers Sick of Grunt Work Build $2 Billion AI Tool to Do the Job Meta Shares Plunge on Rising Concern About AI Spending Spree The iPhone maker announced last week that Ternus, its current head of hardware infrastructure, will take over for CEO Tim Cook on Sept. 1. That makes Apple’s fiscal second-quarter earnings report, outlook and conference call the first significant opportunity for Wall Street to get a reading on the new leader’s priorities. It isn’t clear if Ternus will appear on the call, and a company spokesperson declined to comment. “It isn’t really about the numbers,” said Anthony Saglimbene, chief market strategist at Ameriprise. “We want to know what the CEO transition looks like.” Ternus is taking over at a complex time for one of the world’s biggest companies, which is expected to debut a number of major products in upcoming months — notably a foldable iPhone. But while growth trends are improving, Apple has been grappling with skyrocketing costs for key components like memory chips and a volatile macro backdrop driven by the war in Iran and advances in AI that have minted stock market winners and losers. “Investors have reason to be excited about Ternus since he was an overseer of some of Apple’s most successful recent products, but his strategy will be a long-term story,” said David Wagner, portfolio manager at Aptus Capital Advisors, which has about $14 billion in assets and holds Apple in a variety of portfolios. “In the short term, the impact of component costs will be the focal point.” Apple shares are up less than 1% this year after a relatively disappointing 8.6% gain in 2025. By contrast, the technology-heavy Nasdaq 100 Index is up 8.3% in 2026 and the S&P 500 Index has gained 4.9%. Apple’s stock was up 1.2% on Thursday afternoon. While the company is accelerating development of AI-powered hardware devices and features, it has also seen a number of delays with its own artificial intellig...

Q1 results beat guidance: Revenue was $205 million (including $64 million of catch-up from new agreements), adjusted EBITDA $112 million with a 54% margin, GAAP EPS $2.14 and non‑GAAP EPS $2.57, while ARR rose 13% to $567 million driven by a record smartphone ARR of $492 million after the Xiaomi renewal. Strong enforcement momentum: InterDigital reported multiple injunction wins in multi‑jurisdictional cases (including against Disney and Transsion), and said it is pursuing additional actions versus TCL and Hisense while preferring bilateral licenses when possible. Solid balance sheet and outlook: The company ended the quarter with more than $1 billion in cash and short‑term investments, paid down $88 million of debt, returned $26 million to shareholders, and maintained full‑year guidance while guiding Q2 revenue from existing contracts to $139–$143 million. Interested in InterDigital, Inc.? Here are five stocks we like better. 3 Sector ETFs Catching Fire After Earnings Beats InterDigital (NASDAQ:IDCC) reported what executives described as a “very strong start” to 2026, with first-quarter revenue, adjusted EBITDA, and earnings per share coming in above the top end of the company’s guidance range. Management pointed to continued momentum in its licensing programs, ongoing enforcement activity, and progress in research and standards leadership as key drivers during the period. Richard Brezski, InterDigital’s CFO, said total revenue for the quarter was $205 million, above the company’s guidance range of $194 million to $200 million. Brezski noted that total revenue included $64 million of catch-up revenue tied to new agreements. → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? 2 Sizzling Mid-Caps That Could Stay Hot This Summer Adjusted EBITDA was $112 million, above guidance of $101 million to $110 million, while adjusted EBITDA margin was 54%, which Brezski said was above the midpoint of guidance. GAAP diluted EPS was $2.14, exceeding the guided range of $1.61 to $1.86, and non-GAAP EPS was $2.57, above the midpoint of the company’s non-GAAP EPS guidance range of $2.39 to $2.68. Annualized recurring revenue (ARR) for the quarter was $567 million, up 13% year-over-year, according to President and CEO Liren Chen. Brezski said the quarter included a record $492 million of smartphone ARR. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss InterDig...

Image source: The Motley Fool. Thursday, April 30, 2026 at 10 a.m. ET President and Chief Executive Officer — Liren Chen Chief Financial Officer — Rich Brezski Vice President, Investor Relations — Raiford Garrabrant Need a quote from a Motley Fool analyst? Email [email protected] Liren Chen, our President and CEO, and Rich Brezski, our CFO. As in prior calls, we will offer some highlights about the quarter and the company, and then open the call up for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our Investor Relations website. Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs and plans. Expectations are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk Factors section of our 2025 Annual Report on Form 10-K and in our other SEC filings. In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the supplemental materials posted to the Investor Relations section of our website. With that taken care of, I will turn the call over to Liren. Thank you, Rich. Good morning, everyone. We will now open the call for questions following our prepared remarks. Liren Chen: Thanks for joining us today. We have made a very strong start to 2026 with continued momentum across our licensing programs, our research and innovation pipeline, our standards development leadership, and our patent portfolio growth. Revenue, adjusted EBITDA, and EPS were all above the top end of our guidance. Our annualized recurring revenue is now at $567 million, up 13% year-over-year. In licensing, we have a productive quarter with six new agreements. We renewed our agreement with Xiaomi through bilateral negotiation. Xiaomi is the world's third-largest smartphone manufacturer behind Apple and Samsung. This renewal helped drive annualized recurring revenue in our smartphone program to a record $492...

InterDigital, Inc. IDCC reported relatively healthy first-quarter 2026 results, with both top and bottom lines beating the Zacks Consensus Estimate. The company’s licensing business remained stable, supported by new customer wins and higher recurring revenues. However, lower catch-up revenues compared to last year, weakness in the smartphone licensing business, and higher costs weighed on overall sales and earnings. On a GAAP basis, net income in the reported quarter declined to $75.3 million or $2.14 per share from $115.6 million or $3.45 per share in the prior-year quarter, primarily due to lower net sales and higher operating expenses, including increased revenue-sharing costs from the LG TV deal and heavy spending on IP enforcement. Non-GAAP net income was $79.4 million or $2.57 per share compared with $125.7 million or $4.21 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents. InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote Quarterly revenues decreased to $205.4 million from the year-ago quarter’s tally of $210.5 million. However, the top line beat the Zacks Consensus Estimate of $197.7 million. In the first quarter, smartphone revenues declined to $123.4 million from $184 million in the year-ago quarter. CE, IoT/Auto group generated $81.9 million in revenues, up 212% year over year, mainly driven by new licensing agreements and higher contributions from connected devices and automotive markets. Annualized recurring revenues increased 13% year over year to $567.2 million, while catch-up revenues declined to $63.6 million from $84.8 million a year ago. Adjusted EBITDA declined to $111.8 million from the prior-year figure of $159.1 million. Total operating expenses increased to $123.2 million from $78.7 million in the year-ago quarter. Operating income decreased to $82.3 million from $131.8 million in the year-earlier quarter. In the first quarter, InterDigital generated $16.1 million in cash from operations compared with $20 million used in the year-earlier quarter. As of March. 31, 2026, it had $1.08 billion in cash, cash equivalents and short-term investments, with $69.4 million of long-term debt and other liabilities. For the second quarter of 2026, InterDigital estimates revenues between $139 million and $143 million. Adjusted EBITDA is estimated in the band of $67-$73 milli...

WILMINGTON, Del. (AP) — WILMINGTON, Del. (AP) — InterDigital Inc. (IDCC) on Thursday reported first-quarter net income of $75.3 million. The Wilmington, Delaware-based company said it had net income of $2.14 per share. Earnings, adjusted for one-time gains and costs, came to $2.57 per share. The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $2.54 per share. The wireless research and development company posted revenue of $205.4 million in the period, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $197.7 million. For the current quarter ending in June, InterDigital expects its per-share earnings to range from $1.41 to $1.60. The company said it expects revenue in the range of $139 million to $143 million for the fiscal second quarter. InterDigital expects full-year earnings in the range of $8.74 to $11.84 per share, with revenue ranging from $675 million to $775 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on IDCC at https://www.zacks.com/ap/IDCC

InterDigital (IDCC) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.54 per share. This compares to earnings of $4.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.31%. A quarter ago, it was expected that this wireless research and development company would post earnings of $1.65 per share when it actually produced earnings of $2.12, delivering a surprise of +28.48%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. InterDigital, which belongs to the Zacks Wireless Equipment industry, posted revenues of $205.42 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.91%. This compares to year-ago revenues of $210.51 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. InterDigital shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 4.2%. While InterDigital has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for InterDigital was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list o...

WILMINGTON, Del., April 14, 2026 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a wireless, video and AI technology research and development company, today announced that the company will release its first quarter 2026 financial results before the market open on Thursday, April 30, 2026. InterDigital executives will host a conference call that same day at 10:00 a.m. Eastern Time (ET) to discuss the company performance. For a live webcast of the conference call visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the webcast option. See below for dial-in details to join the call telephonically: USA - Toll-Free (800) 715-9871 USA / International Toll +1 (646) 307-1963 Conference ID 2456118 or Conference Name A replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year. About InterDigital® InterDigital is a global research and development company focused primarily on wireless, video, artificial intelligence (“AI”), and related technologies. We design and develop foundational technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. We license our innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles, and providers of cloud-based services such as video streaming. As a leader in wireless technology, our engineers have designed and developed a wide range of innovations that are used in wireless products and networks, from the earliest digital cellular systems to 5G and today’s most advanced Wi-Fi technologies. We are also a leader in video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies. Founded in 1972, InterDigital is listed on Nasdaq. InterDigital is a registered trademark of InterDigital, Inc. For more information, visit: www.interdigital.com. InterDigital Contact: [email protected] +1 (302) 300-1857