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InterDigital (IDCC) continues its strong run heading into the quickly approaching earnings season, climbing to new all-time highs after raising Q3 guidance and inking a fresh license deal with a major Chinese smartphone vendor. The stock has surged more than 50% on the back of the Samsung arbitration ruling and a standout Q2 earnings report on July 31.

• Raised Q3 EPS and revenue outlook to $2.08-2.27 (from $1.52-1.72) and $155-159 mln (from $136-140 mln), both well above consensus.
• New license adds another top smartphone player, boosting projected annualized recurring revenue (ARR) by about $26 mln to a record $579 mln. IDCC now has 8 of the top 10 global smartphone vendors under license, covering roughly 85% of the global market, up from ~80% noted on its Q2 call.
• The multiyear Samsung arbitration deal, finalized in July, remains a landmark agreement, worth over $1 bln through 2030 and marking a 67% increase vs. its prior contract.
• Growth isn't limited to smartphones: its Consumer Electronics & IoT program also continues to scale, highlighted by a recent PC licensing deal with HP.

Briefing.com Analyst Insight

InterDigital's licensing model, backed by its patent portfolio in 4G/5G/6G, video, and AI, continues to provide solid operating leverage. With ARR at record levels and expanded coverage across most of the smartphone market, the company is building a stronger recurring base while also positioning for future opportunities in AI-driven networks and IoT. The recent momentum highlights near-term earnings strength, though execution on newer growth avenues will be key.