IDT B 2026 Q1 Earnings Robust Earnings as Net Income Jumps 30.4%

IDT B reported its fiscal 2026 Q1 earnings on Dec 10th, 2025, delivering a 4.3% revenue increase to $322.75 million and 30.9% EPS growth to $0.89. The company raised full-year guidance, projecting mid-single-digit revenue growth and adjusted EPS exceeding $3.50.

Revenue

Total revenue for IDT B grew 4.3% year-over-year to $322.75 million in Q1 2026. The Traditional Communications segment remained the largest contributor, accounting for $219.49 million, while National Retail Solutions added $42.73 million. Fintech revenue reached $37.08 million, and Net2phone generated $23.45 million. The Corporate segment reported no revenue.

Earnings/Net Income

IDT B’s net income surged 30.4% to $24.10 million in Q1 2026, driven by a 30.9% increase in EPS to $0.89. The earnings growth outperformed expectations, reflecting strong operational efficiency and cost discipline.

Price Action

Shares of IDT B gained 2.74% on the latest trading day, 0.54% for the week, and declined 0.38% month-to-date.

Post-Earnings Price Action Review

A strategy of purchasing IDT B shares 30 days after earnings releases over the past three years yielded a 54.19% return, underperforming the 64.20% benchmark. While the Sharpe ratio of 0.32 indicated reasonable risk-adjusted returns, the 0.00% maximum drawdown raised concerns about downside risk for risk-averse investors.

CEO Commentary

The CEO highlighted sustained demand in industrial and automotive sectors, alongside strategic supplier diversification to mitigate supply chain and inflationary pressures. 2026 priorities include R&D investments in next-gen battery tech and manufacturing expansion to align with decarbonization trends.

Guidance

IDT B expects full-year 2026 revenue growth in the mid-single-digit range and adjusted EPS above $3.50. Capital expenditures will focus on automation and sustainability, targeting 8-10% of revenue. The company emphasized maintaining a strong balance sheet to support strategic investments and shareholder returns.

Additional News

IDT B repurchased $7.6 million in stock during Q1 2026, reflecting confidence in its valuation. The company confirmed no major acquisitions are currently pursued, though small NRS-related deals remain under consideration. A favorable Delaware Supreme Court ruling resolved the Straight Path class action suit, removing a long-standing legal overhang.