InterDigital Projects Robust Growth Through 2026, Bolstered by New LG Electronics Pact
WILMINGTON, Del. – InterDigital, Inc. (NASDAQ: IDCC), a pioneer in wireless and video technology research and development, unveiled its financial targets for fiscal year 2026 on Thursday, projecting sustained growth driven by its expanding patent licensing program.
The company anticipates revenue in the range of $675 million to $775 million for FY 2026, with adjusted EBITDA forecast between $381 million and $477 million. Diluted earnings per share are expected to land between $5.77 and $8.51. This forward-looking statement underscores confidence in the company's core business of monetizing its vast R&D investments in areas like 5G, AI, and video compression.
A significant driver highlighted in the announcement is a new, multi-year patent license agreement with LG Electronics. The pact covers LG's computer monitors and digital televisions, leveraging InterDigital's joint licensing program with Sony. It encompasses essential technologies for modern displays, including ATSC 3.0 for next-gen broadcast TV, Wi-Fi, and advanced video codecs.
"This agreement with a global leader like LG validates the strength and relevance of our portfolio," a company spokesperson stated. InterDigital also confirmed the renewal of a major smartphone license with an established Chinese manufacturer, though the specific partner was not named.
Following the announcement, Roth Capital reaffirmed its "Buy" rating on InterDigital stock, maintaining a price target of $425. Analysts cited the LG deal as a positive catalyst that de-risks the revenue trajectory and demonstrates the ongoing demand for InterDigital's intellectual property.
Market Voices: Analysts and Investors Weigh In
Michael Chen, Portfolio Manager at Horizon Tech Funds: "InterDigital's guidance is concrete and achievable. The LG deal isn't just a one-off; it's a blueprint for how they can monetize their joint programs with other industry giants. It provides visibility that is rare in the licensing space."
David Park, Independent Tech Analyst: "The numbers are solid, but the real story is strategic. They're successfully transitioning their legacy wireless IP into the visual and AI domains. The ATSC 3.0 inclusion in the LG deal is a perfect example—it's a future-proof standard."
Sarah Jennings, Editor at 'The Skeptical Investor' Blog: "Let's not get carried away. A forecast for 2026 is just that—a forecast. The entire model is built on legal negotiations and potential litigation. One major holdout or court loss could blow that $775 million revenue target out of the water. This is a high-risk, high-fee business, not a predictable SaaS model."
Robert Miller, Veteran Telecom Investor: "I've followed IDCC for years. This is among the most specific long-term guidance they've ever issued. It tells me management has unprecedented line-of-sight into their contract pipeline. The confidence is palpable, and for a patent play, that's everything."