InterDigital Q3 revenue tops estimates on video services expansion 

Overview

• Wireless and video technology R&D firm's Q3 revenue up 17% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company's results driven by new license agreements and expansion in video services

Outlook

• InterDigital sees Q4 2026 revenue of $154 mln to $160 mln

• Company expects full-year 2026 revenue of $813 mln to $819 mln

• Company expects full-year 2026 non-GAAP EPS of $11.99 to $12.25

Result Drivers

• CATCH-UP REVENUE - Co said Q3 results benefited from $36.2 mln in catch-up revenue, up from $17.7 mln in Q3 2025

• NEW LICENSE AGREEMENTS - Co said new PC and IoT license deals contributed to Q3 revenue growth

• RECURRING REVENUE - Record annualized recurring revenue of $629 mln supported overall results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for InterDigital Inc is $463.46, about 44.6% above its October 28 closing price of $320.56

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 35 three months ago

Reuters Recommended Reads

• Oct 28 - Microsoft Q1 results beats estimates driven by Azure growth

• Oct 29 - Bandwidth Q3 revenue rises 22%, slightly beats estimates

• Oct 28 - Tenable Q3 revenue beats estimates; raises FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)