InterDigitalFRA:IDI -3.45%71 Net Margin % is 36.67% as of Mar. 2026, which is 35% above its 10-year median of 27.11. GuruFocus rates FRA:IDI with a GF Score™ of 71/100 and a GF Value™ of €133.96 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,825 Software companies, InterDigital ranks better than 97.66% on this metric.
Net margin is calculated as Net Income divided by its Revenue. InterDigital's Net Income for the
three
months ended in Mar. 2026 was €65.2 Mil. InterDigital's Revenue for the
three
months ended in Mar. 2026 was €177.7 Mil. Therefore, InterDigital's net margin for the quarter that ended in Mar. 2026 was 36.67%.
The historical rank and industry rank for InterDigital's Net Margin % or its related term are showing as below:
FRA:IDI'
s Net Margin % Range Over the Past 10 Years
Min: 6.56 Med: 27.11 Max: 48.76
Current: 44.2
FRA:IDI's Net Margin % is ranked better than 97.66% of 2825
companies
in the Software industry
Industry Median: 2.54
vs FRA:IDI: 44.20
InterDigital (FRA:IDI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
InterDigital Net Margin % Related Terms
InterDigital Net Margin % Historical Data
* Premium members only.
The historical data trend for InterDigital's Net 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.
FRA:IDI vs PAYC, ESTC, PCTY: Net Margin % Comparison
For the Software - Application subindustry, InterDigital's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, InterDigital's Net Margin % distribution charts can be found below:
* The bar in red indicates where InterDigital's Net 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.
InterDigital (FRA:IDI) has a Net Margin % of 36.67% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on InterDigital and its competitors. This is 35% above median its historical median of 27.11. Over the past decade, InterDigital's Net Margin % has ranged from 6.56 to 48.76. According to the industry distribution chart, InterDigital ranks #66 out of 2825 companies in the Software industry, placing it in the top 2.3%.
Is InterDigital's Net Margin % too high?
InterDigital's current Net Margin % of 36.67% is 35% above median its 10-year median of 27.11. Over the past 10 years, this metric has ranged from a low of 6.56 to a high of 48.76. The Software industry median Net Margin % is 2.54. InterDigital's value of 36.67% is 1343.7% above this industry median. Based on the distribution chart, InterDigital ranks #66 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, InterDigital has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterDigital's Net Margin % compare to PAYC and ESTC?
According to the Software industry distribution chart, InterDigital ranks #66 out of 2825 companies for Net Margin %. This places InterDigital in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. InterDigital's value of 36.67% is 1343.7% above this benchmark. Historically, InterDigital's own Net Margin % has ranged from 6.56 to 48.76 over the past decade. While the company's 10-year median is 27.11 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. InterDigital's current Net Margin % of 36.67% is 1343.7% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on InterDigital and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterDigital's current Net Margin % is 36.67%, which is 35% above median its own 10-year median of 27.11. 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 (FRA:IDI) is currently considered Significantly Overvalued. The stock's GF Value™ is €133.96, compared to a current price of €243.20 — trading 81.5% above its estimated fair value. The current Net Margin % is 36.67%, which is 35% above median its 10-year median of 27.11 and 1343.7% above the Software industry median of 2.54. InterDigital's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For InterDigital (FRA:IDI), the current Net Margin % is 36.67% as of Mar. 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 (FRA:IDI) Overvalued in 2026?
Based on GuruFocus' analysis, InterDigital stock appears to be overvalued.
The current stock price of €243.20 is trading 81.5% above its estimated GF Value™ of €133.96.
GuruFocus considers InterDigital to be Significantly Overvalued.
Key valuation signals for FRA:IDI:
Net Margin %: 36.67% (35% above median its 10-year median of 27.11)
GF Value™: €133.96 vs. price of €243.20 (81.5% above fair value)
Industry Position: 1343.7% above the Software median (#66 of 2825)
No single metric tells the full story. See the FRA:IDI 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.
71GF Score
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