InterDigital Q3 2026: EPS Beats Expectations, Guidance Raised Again
As seen on the 24/7 Wall St. homepage on October 29, 2026.
InterDigital raised its full-year revenue outlook to $813 million to $819 million on contracted revenue alone, so any new license or enforcement win in Q4 is pure upside. A new PC license won through arbitration lifted CE, IoT and auto licensing 97%, more than offsetting softer smartphone revenue.
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InterDigital posted third-quarter non-GAAP EPS of $3.11, beating the $2.00 consensus, with revenue also exceeding expectations. That double beat cleared the company's own guidance range, making it the fourth consecutive quarter in which the patent licensor has topped consensus EPS.
A new PC license secured through binding arbitration propelled CE, IoT, and auto licensing revenue up 97% year over year. Catch-up revenue more than doubled from the same quarter a year earlier, and a brand-new streaming and cloud services line contributed where nothing had been recorded twelve months prior.
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Management raised the full-year revenue outlook to a range of $813 million to $819 million, and this guidance rests entirely on revenue already under contract. CEO Liren Chen made the point explicit: any additional deals or enforcement wins in Q4 would be purely additive to those numbers, not baked in.
Smartphone licensing revenue fell 10% year over year, free cash flow declined, and arbitrations with Lenovo and Dell remain unresolved alongside convertible notes that become convertible in Q4 2026. Still, record annualized recurring revenue and an adjusted EBITDA margin that expanded to 68% underscore how much the non-smartphone licensing push is reshaping the earnings profile.
Mentioned: IDCC