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InterDigitalIDCC +0.49%72 Gross Margin % is 86.65% as of Jun. 2026, which is 5% above its 10-year median of 82.57. GuruFocus rates IDCC with a GF Score™ of 72/100 and a GF Value™ of $145.07 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,690 Software companies, InterDigital ranks better than 91.71% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
InterDigital had a gross margin of 86.65% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
InterDigital Gross Margin % Related Terms
InterDigital Gross Margin % Historical Data
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The historical data trend for InterDigital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
IDCC vs PCTY, TTAN, PAYC: Gross Margin % Comparison
For the Software - Application subindustry, InterDigital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
InterDigital Gross Margin % vs Software Industry
For the Software industry and Technology sector, InterDigital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where InterDigital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
InterDigital (IDCC) has a Gross Margin % of 86.65% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on InterDigital and its competitors. This is near median its historical median of 82.57. Over the past decade, InterDigital's Gross Margin % has ranged from 51.42 to 88.77. According to the industry distribution chart, InterDigital ranks #223 out of 2690 companies in the Software industry, placing it in the top 8.3%.
Is InterDigital's Gross Margin % too high?
InterDigital's current Gross Margin % of 86.65% is near median its 10-year median of 82.57. Over the past 10 years, this metric has ranged from a low of 51.42 to a high of 88.77. The Software industry median Gross Margin % is 40.50. InterDigital's value of 86.65% is 114% above this industry median. Based on the distribution chart, InterDigital ranks #223 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, InterDigital has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterDigital's Gross Margin % compare to PCTY and TTAN?
According to the Software industry distribution chart, InterDigital ranks #223 out of 2690 companies for Gross Margin %. This places InterDigital in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.50. InterDigital's value of 86.65% is 114% above this benchmark. Historically, InterDigital's own Gross Margin % has ranged from 51.42 to 88.77 over the past decade. While the company's 10-year median is 82.57 vs. the industry median of 40.50, InterDigital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.50, based on 2,690 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterDigital's current Gross Margin % of 86.65% is 114% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on InterDigital and its competitors. For the Software industry, the median Gross Margin % is 40.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterDigital's current Gross Margin % is 86.65%, which is near median its own 10-year median of 82.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterDigital stock overvalued right now?
Based on GuruFocus' analysis, InterDigital (IDCC) is currently considered Significantly Overvalued. The stock's GF Value™ is $145.07, compared to a current price of $304.83 — trading 110.1% above its estimated fair value. The current Gross Margin % is 86.65%, which is near median its 10-year median of 82.57 and 114% above the Software industry median of 40.50. InterDigital's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For InterDigital (IDCC), the current Gross Margin % is 86.65% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is InterDigital (IDCC) Overvalued in 2026?
Based on GuruFocus' analysis, InterDigital stock appears to be overvalued.
The current stock price of $304.83 is trading 110.1% above its estimated GF Value™ of $145.07.
GuruFocus considers InterDigital to be Significantly Overvalued.
Key valuation signals for IDCC:
Gross Margin %: 86.65% (near median its 10-year median of 82.57)
GF Value™: $145.07 vs. price of $304.83 (110.1% above fair value)
Industry Position: 114% above the Software median (#223 of 2690)
No single metric tells the full story. See the IDCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterDigital Inc is a research and development company focused on wireless, Video, Artificial Intelligence, and related Technologies. It designs and develops technologies that enable connected, immersive experiences in a broad range of communications and entertainment products and services. The majority of revenue is generated from fixed-fee patent license agreements, with a smaller portion coming from variable royalty agreements. Geographically, it operates in the United States, China, South Korea, Japan, Taiwan, and Europe, with the majority is from China.
72GF Score
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