InterDigital Q2 revenue beats; raises full-year revenue outlook

InterDigital

30/07/2026 13:41

Overview
US wireless and video tech firm's Q2 revenue beat analyst expectations but fell 13% yr/yr
Adjusted EPS and net income declined yr/yr amid higher IP enforcement and compensation costs
Company raised full-year 2026 revenue outlook by $85 mln, citing new Amazon agreement

Outlook
InterDigital raises full-year 2026 revenue outlook to $775-$845 mln from $675-$775 mln
Company sees Q3 2026 revenue between $154 mln and $158 mln
InterDigital expects full-year 2026 non-GAAP EPS of $10.85-$12.81

Result Drivers
AMAZON AGREEMENT - New agreement with Amazon covering services and devices, including Prime Video, drove Q2 results above outlook
RECURRING REVENUE GROWTH - Annualized recurring revenue rose 13% yr/yr to an all-time high, reflecting increased licensing activity
HIGHER OPERATING COSTS - Operating expenses increased due to higher IP enforcement costs and share-based compensation

Company press release: ID:nGNX97qQYk

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$260.20 mln
$143.05 mln (4 Analysts)
Q2 EPS
 
$3.40
 
Q2 Net Income
 
$116.40 mln
 
Q2 Adjusted EBITDA
 
$184.10 mln
 
Q2 Adjusted EBITDA Margin
 
71.00%
 
Q2 Operating Expenses
 
$120.90 mln
 

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 $469.22, about 79.7% above its July 29 closing price of $261.14
The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 40 three months ago

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(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.)