InterDigital's stock plummeted 5.49% during intraday trading on Thursday, following the release of its first quarter 2026 financial results. The wireless and video technology research company reported year-over-year declines across key financial metrics despite beating analyst expectations for the quarter.

The company's Q1 revenue fell 2% to $205.4 million, while net income dropped 35% to $75.3 million compared to the same period last year. Adjusted earnings per share declined 39% to $2.57 from $4.21 a year earlier. Operating expenses surged 57% to $123.2 million, primarily due to increased revenue share costs from the LG TV agreement and higher intellectual property enforcement costs.

Investors reacted negatively to InterDigital's Q2 outlook, which calls for revenue of $139 million to $143 million and adjusted EPS of $1.41 to $1.60. This guidance appears below analyst expectations, with surveys indicating analysts had anticipated Q2 revenue of $159.8 million and EPS of $2.13. While the company reaffirmed its full-year 2026 guidance, the weak near-term outlook and significant year-over-year earnings decline drove the stock's downward movement.