Core Insights - InterDigital, Inc. is a leader in mobile, video, and AI technology research and development, recognized for its innovative solutions in wireless and video technologies [1] - The company has received a "Buy" rating upgrade from Jefferies, with a new price target of $475, reflecting a positive outlook based on strong financial performance [2] Financial Performance - In Q3 2025, InterDigital reported revenues of $164.7 million, a 28% increase year-over-year, driven mainly by smartphone licensing [3] - The net income for the quarter reached $67.5 million, or $1.93 per share, up from $34.2 million, or $1.14 per share, in the previous year [3] - On a non-GAAP basis, net income increased to $78.2 million, or $2.55 per share [3] - The earnings per share of $2.55 exceeded the Zacks Consensus Estimate of $1.79, resulting in a +42.46% earnings surprise [4] - Over the past four quarters, the company has surpassed consensus EPS estimates three times [4] Strategic Focus - InterDigital's focus on AI integration and advancements in video and wireless technologies is crucial for its long-term growth [5] - The company achieved an all-time high in annualized recurring revenue, which increased by 49% year-over-year to $588 million [5] - The resolution of the Samsung smartphone arbitration has further bolstered the company's financial position [5]