InterDigital, Inc (IDCC) AI Stock Analysis

InterDigital, Inc., along with its subsidiaries, specializes in designing and advancing technologies that revolutionize wireless communications across global markets including the United States, China, South Korea, Japan, Taiwan, and Europe. The company develops essential technology solutions for digital cellular and wireless networks, spanning from 2G to 5G and beyond, including innovations in CDMA, TDMA, OFDM/OFDMA, and MIMO technologies. In addition to cellular advancements, InterDigital develops video coding and transmission technologies, while also conducting research and development in artificial intelligence. Its patented technologies are integrated into smartphones, tablets, notebook computers, IoT devices, smart homes, wearables, drones, and automotive systems.

Between FY2020 and FY2025, InterDigital generated a 5-year revenue compound annual growth rate of 18.4%. Annual revenue rose from $425.4M in FY2021 to a peak of $868.5M in FY2024 before decreasing 4.0% to $834.0M in FY2025. Despite the slight revenue drop in FY2025, net income rose to $406.6M, representing a net margin of 48.8% and diluted EPS of $15.40, supported by an operating margin of 55.3%. Operating cash flow expanded to $544.5M in FY2025, generating free cash flow of $528.6M. In the trailing twelve months ended June 30, 2026, revenue stood at $788.5M, but the latest quarter saw revenue decline 13.4% and earnings decline 36.4% year-over-year.

As of June 30, 2026, InterDigital reported $1.11B in cash and short-term investments against $401.5M in total debt, resulting in a net cash position of $710.9M. Total assets stood at $2.19B and shareholders' equity reached $1.20B, yielding a debt-to-equity ratio of 0.33 and a current ratio of 1.74. In FY2025, the company deployed cash toward $15.9M in capital expenditures, $102.3M in share buybacks, and $60.7M in dividend payments.

InterDigital carries a market capitalization of $8.24B and an enterprise value of $7.72B. The stock trades at a trailing price-to-earnings ratio of 37.3x and a forward P/E of 29.9x, both higher than the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its price-to-sales multiple is 10.5x compared to the peer median of 2.8x, while its EV-to-EBITDA matches the peer median at 16.6x. Over the past year, IDCC shares returned -12.3%, underperforming the S&P 500's return of 16.8%, though its 5-year return of 404.0% outpaced the broader index return of 83.0%.

InterDigital offers an annual forward dividend of $3.00 per share, which equates to a dividend yield of 0.94% based on its last close of $319.30. The payout ratio stands at 25.5%, supported by 16 consecutive years of dividend payments and a 5-year annualized dividend growth rate of 10.9%. The most recent quarterly ex-dividend date was October 14, 2026.

Wall Street coverage includes 4 Strong Buy ratings, with zero Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $462.67, representing a 44.9% premium over the last close of $319.30. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $11.55 on revenue of $796.4M, reflecting a 24.5% earnings contraction. For the subsequent year, 4 analysts estimate revenue of $754.3M and EPS of $11.27. InterDigital has beaten EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for October 29, 2026.

This page is an AI-written research summary of InterDigital, Inc (IDCC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: IDCC income statement, IDCC balance sheet, IDCC key metrics, IDCC analyst forecast, IDCC chart. See the IDCC stock overview for the latest quote and news.