InterDigital (IDI) Q3 2026 Earnings Report
DE:IDI Q3 2026 EPS Results
- Actual EPS
- EUR 2.10
- Consensus EPS
- EUR 1.20
- Beat/Miss
- Beat by +EUR 0.90
- One Year Ago EPS
- EUR 1.73
DE:IDI Q3 2026 Revenue Results
- Actual Revenue
- EUR 173.20M
- Expected Revenue
- EUR 136.97M
- Beat/Miss
- Beat by +EUR 36.22M
- YoY Revenue Growth
- +17.46%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
InterDigital's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive, with record recurring revenue, revenue and profitability well above guidance, expanded licensing coverage, favorable enforcement outcomes, strong cash generation, increased shareholder returns, and continued technology leadership. The main challenges were ongoing litigation investment, unresolved arbitration outcomes, remaining unlicensed markets, the multiyear VVC adoption process, and an unquantified cloud opportunity.
For Q4, based only on existing contracts, InterDigital expects revenue from existing contracts in the range of $154 million-$160 million, Adjusted EBITDA of $80 million-$88 million or an Adjusted EBITDA margin of about 54% at the midpoint, GAAP diluted EPS of $1.04-$1.27, and non-GAAP EPS of $1.72-$1.98; before adding any potential contributions from new agreements or enforcement outcomes over the balance of the year, it expects to exceed the $810 million midpoint of the increased full-year revenue guidance issued last quarter. For full-year 2026, it expects Adjusted EBITDA of $507 million-$515 million, GAAP diluted EPS of $8.93-$9.16, and non-GAAP EPS of $11.99-$12.25, with the midpoint for each of these ranges on existing contracts alone also above the midpoint of prior full-year guidance; both the fourth quarter and full-year outlooks are now based only on existing licenses, and neither includes contributions from any agreements or enforcement action results InterDigital may sign or receive over the balance of the fourth quarter, with any such contributions additive.
- Strong Third-Quarter Financial PerformanceThird-quarter revenue was $193.4 million, up 17% year-over-year and above the $154 million-$158 million guidance range. Adjusted EBITDA was $131.3 million, up 25% year-over-year and above the $86 million-$92 million guidance range. GAAP diluted EPS was $2.34, above the $1.25-$1.42 guidance range, while non-GAAP EPS was $3.11, up 22% year-over-year and above the $1.94-$2.13 guidance range.
- Record Annualized Recurring RevenueAnnualized recurring revenue increased 7% year-over-year to a record $629 million, compared with $588 million a year ago.
- Full-Year Revenue Outlook Supported by Contracted RevenueThe company said contracted revenue for 2026 already exceeded the midpoint of its increased full-year revenue guidance. Before any potential contributions from new agreements or enforcement outcomes in the fourth quarter, the company expects to exceed the $810 million midpoint of its increased full-year revenue guidance.
- Expanded PC Licensing CoverageInterDigital agreed to a patent license with a top PC manufacturer, bringing approximately 70% of the PC market under license, including four of the top five PC makers globally. The license value will be determined through binding arbitration.
- Consumer Electronics and IoT Revenue Nearly DoubledFollowing a new EV charger license with KEBA, CE and IoT and auto revenue nearly doubled year-over-year to $55.7 million, compared with approximately $56 million referenced in the prepared remarks.
- Successful Enforcement Action Against TCL in BrazilA Brazilian court awarded InterDigital a preliminary injunction against TCL after finding that TCL infringed two patents, that the patents were essential to the HEVC standard, and that InterDigital's offers met FRAND obligations. The court required TCL to stop implementing the relevant standard and HEVC standard in devices manufactured, imported, or offered for sale in Brazil.
- Eight-for-Eight Patent Trial Record Against DisneyThe Unified Patent Court in Europe awarded InterDigital two additional injunctions against Disney covering HEVC encoding and video sharing between devices. Across the campaign, courts have found in InterDigital's favor in eight out of eight patent trials and have awarded eight injunctions.
- Progress in Streaming and Cloud LicensingInterDigital continued negotiations with streaming service providers and cited its previously announced Amazon patent license agreement covering devices and services. The company said the Amazon agreement was an important milestone and that monetization efforts by important patent holders across the streaming industry are accelerating.
- VVC Adoption MomentumQualcomm and MediaTek announced VVC hardware decoding in their latest smartphone chipsets, following Google's announcement that it was adding VVC support to the latest version of Android. InterDigital said these milestones support potential deployment across hundreds of millions of devices and a wide range of video services.
- Recognition for VVC ResearchAt IBC 2026, InterDigital and research partner NHK received a Best in Show award for a VVC multilayer-coding demonstration that can carry multiple versions of content in one VVC bitstream, saving bandwidth and storage while enabling options such as captions and sign language.
- Continued Standards LeadershipOne of InterDigital's wireless engineers was reelected to a senior leadership position within IEEE, the standards organization responsible for Wi-Fi development. The company said it views standards leadership as important to shaping next-generation wireless, video, and AI technologies.
- Strong Cash Generation and Balance SheetCash from operations was $150.4 million and free cash flow was $136.2 million. The company ended the quarter with $1.1 billion in cash equivalents and short-term investments.
- Capital Returns IncreasedInterDigital returned $121.2 million of capital during the quarter, including $18.7 million through share repurchases, $19.3 million of dividends declared, and $83.2 million of debt repayment. The quarterly dividend increased from $0.70 to $0.75 per share, an increase of approximately 7%, and has more than doubled over the last four years.
- Fourth-Quarter and Full-Year Guidance Based on Existing LicensesFor the fourth quarter, the company expects revenue from existing contracts of $154 million-$160 million, Adjusted EBITDA of $80 million-$88 million, GAAP diluted EPS of $1.04-$1.27, and non-GAAP EPS of $1.72-$1.98. For full-year 2026, it expects Adjusted EBITDA of $507 million-$515 million, GAAP diluted EPS of $8.93-$9.16, and non-GAAP EPS of $11.99-$12.25. The company emphasized that these outlooks exclude potential contributions from additional agreements or enforcement outcomes.
- Ongoing Innovation and M&A EvaluationInterDigital said its internal R&D engine produces six new patents per day. It continues to evaluate M&A opportunities across technology, intellectual property, and other functions, following its acquisition of Deep Render last year for AI expertise, technology, and IP.
- External Recognition of Company PerformanceThe company said Newsweek named InterDigital among America's greatest companies and TIME named it among America's growth leaders.
DE:IDI Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 1.08- | 1.07 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 1.202.10 | 1.73 | 21.24% (+0.37) | |
| Jul 30, 2026 | 2026 (Q2) | 0.813.04 | 4.79 | -36.45% (-1.75) | |
| Apr 30, 2026 | 2026 (Q1) | 1.531.92 | 3.09 | -37.97% (-1.17) | |
| Feb 05, 2026 | 2025 (Q4) | 1.061.07 | 3.66 | -70.66% (-2.59) | |
| Oct 30, 2025 | 2025 (Q3) | 1.371.73 | 1.02 | 69.30% (+0.71) | |
| Jul 31, 2025 | 2025 (Q2) | 2.464.79 | 3.52 | 36.13% (+1.27) | |
| May 01, 2025 | 2025 (Q1) | 2.663.09 | 2.58 | 19.79% (+0.51) | |
| Feb 06, 2025 | 2024 (Q4) | 3.643.66 | 1.26 | 190.07% (+2.40) | |
| Oct 31, 2024 | 2024 (Q3) | 0.231.02 | 1.54 | -33.72% (-0.52) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
