InterDigital Q3 Revenue Rises 17% to $193 Million as Annualized Recurring Revenue Hits Record $629 Million; Outlook Raised
InterDigital, a wireless, video and AI technology research and licensing company, reported third-quarter 2026 results on October 29 in Wilmington, Delaware. Revenue rose 17% year over year to $193.4 million, net income rose 19% to $80.2 million, and diluted earnings per share were $2.34.
On a non-GAAP basis, adjusted EBITDA rose 25% to $131.3 million at a 68% margin, and non-GAAP net income was $95.7 million, or $3.11 per share. Annualized recurring revenue reached a record $628.9 million, up 7%, and the quarter included $36.2 million of catch-up revenue. Smartphone revenue was $122.6 million, consumer electronics, IoT and auto revenue rose 97% to $55.7 million, and streaming and cloud services contributed $15.0 million.
InterDigital reached a license agreement with a top PC manufacturer, with final terms to be set by binding arbitration, and has now licensed four of the world's top five PC makers. It signed a new IoT license with EV charging company KEBA, and Europe's Unified Patent Court awarded it two new injunctions against Disney, making eight injunctions won in eight patent cases decided to date. The quarterly dividend was increased from $0.70 to $0.75 per share, and the company returned $121.2 million of capital in the quarter through repurchases, dividends and debt reduction.
President and CEO Liren Chen called it another excellent quarter with double-digit growth in revenue and profitability and record annualized recurring revenue. Based only on revenue already under contract, InterDigital raised the midpoint of its full-year guidance, expecting 2026 revenue of $813 million to $819 million and fourth-quarter revenue of $154 million to $160 million.
Source: GSM · USA (original Chinese edition)
Photo: 图：Delaware 州 Wilmington 市景，InterDigital 总部所在地。照片：Quintin Soloviev 摄，CC BY 4.0，经 Wikimedia Commons。 / Wilmington, Delaware, home of InterDigital's headquarters. Photo: Quintin Soloviev, CC BY 4.0, via Wikimedia Commons.
