Idt (IDT) has put out its Q3 2026 scorecard, with revenue of US$315.7 million and basic EPS of US$0.87, alongside trailing 12 month revenue of US$1.28 billion and EPS of US$3.26 framing the bigger picture. Over recent quarters the company has seen revenue move between US$301.9 million and US$322.8 million, while quarterly EPS has ranged from US$0.67 to US$0.89. This gives investors a clear view of how the top and bottom lines have tracked into the current release. With trailing net profit margins easing from 7.8% to 6.4%, this set of numbers puts the focus firmly on how sustainable profitability really looks beneath the headline EPS.

See our full analysis for IDT.

With the latest results on the table, the next step is to see how these numbers line up with the widely followed narratives around IDT, and where the story investors trade on might differ from what the financials actually show.

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Margins Tighten as Net Profit Hits US$21.6 Million

• Net income from ongoing operations came in at US$21.6 million for Q3 2026, within a 12 month range of US$16.9 million to US$22.4 million, while the trailing net profit margin has eased from 7.8% to 6.4%.
• Bears focus on that margin drift and argue profitability is more fragile than EPS suggests, especially with high non cash components in earnings.
  • The trailing 12 month net income of US$81.8 million sits against trailing revenue of US$1.28 billion, which is consistent with that 6.4% margin and below the prior 7.8% level highlighted in the risk summary.
  • Because a major risk flagged is that a large share of those earnings is non cash, critics question how much of the US$3.26 trailing EPS truly reflects cash that can support things like buybacks or dividends over time.

On this view, skeptics see the softer 6.4% margin and heavy non cash earnings as a key stress test for the cautious case on profitability over the next few years 🐻 IDT Bear Case.

Revenue Holds Around US$315 to US$323 Million While Forecasts Point to a Slow Drift Down

• Quarterly revenue over the last six reported periods has moved in a tight band between US$301.9 million and US$322.8 million, yet the latest forecasts reference an expected revenue decline of about 1.5% per year over the next three years.
• Supporters of the bullish narrative argue that product initiatives like NRS feature rollouts and net2phone’s AI agent could help offset that expected drift, even if headline revenue trends stay flat to slightly lower.
  • Consensus narrative points to new NRS functionalities and net2phone’s AI virtual agent as tools aimed at deepening usage rather than just chasing top line growth, which can matter when quarterly revenue already sits around US$315 to US$323 million consistently.
  • Fintech activities through BOSS Money and a focus on margin in that segment are cited as ways to support earnings even if analysts are only modeling roughly flat revenue around US$1.3 billion over time.

Bulls argue that steady revenue in the US$300 million plus per quarter range, paired with new products, keeps the case for earnings growth alive even with modestly negative revenue forecasts 🐂 IDT Bull Case.

Valuation Sits Between DCF Fair Value and Peer P/E

• With the share price at US$55.57 against a DCF fair value of US$59.22, the stock sits about 6.2% below that model while trading on a P/E of 16.9x versus a peer average of 5.5x and roughly in line with the global telecom average of 16.8x.
• Consensus narrative highlights this mixed picture, where a modest discount to DCF fair value and forecast earnings growth of about 6.35% per year are weighed against the higher P/E relative to peers and the step down in trailing net margin from 7.8% to 6.4%.
  • On one side, the current US$55.57 price sits below the US$59.22 DCF fair value and below the allowed analyst target reference of US$80.00, which supporters see as leaving some room if earnings do track toward the cited US$104.9 million level by 2028.
  • On the other, critics point out that paying 16.9x earnings for a company where revenue is forecast to decline about 1.5% per year while margins recently moved from 7.8% to 6.4% may leave less cushion than the DCF gap alone suggests.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for IDT on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of risks and rewards around IDT feels finely balanced, now is a good time to look through the numbers yourself and pressure test the story. To weigh both sides clearly and see where you stand, start with the 2 key rewards and 2 important warning signs.

Explore Alternatives

Revenue forecasts pointing to a 1.5% annual decline, softer net margins, and a P/E of 16.9x versus peers at 5.5x all highlight valuation pressure.

If that mix of shrinking margins and a richer P/E makes you cautious, you may wish to compare IDT against companies trading on more appealing valuations using the 46 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.