IDT (IDT) Q2 2026 EPS Stability Tests Bullish Faster Growth Narrative

IDT (IDT) has just posted Q2 2026 numbers with total revenue of US$320.5 million and basic EPS of US$0.84, alongside net income excluding extra items of US$20.9 million. This puts fresh detail around its earnings profile. The company has seen quarterly revenue move between US$301.9 million and US$322.8 million over the last six reported periods, while basic EPS has ranged from US$0.68 to US$0.89. This gives investors a clearer view of how sales and per share profits have been tracking into the latest quarter’s net income. With a trailing twelve month net profit margin of 6.5% holding steady, this set of results keeps the focus squarely on how efficiently IDT is turning revenue into shareholder earnings.

See our full analysis for IDT.

With the headline results on the table, the next step is to see how these numbers line up against the widely discussed growth and risk narratives around IDT and where the data supports or challenges those views.

See what the community is saying about IDT

6.5% Net Margin Pairs With Multi Year Earnings Growth

• Over the last twelve months, IDT generated US$81.9 million of net income on US$1.26b of revenue, which lines up with the reported 6.5% net profit margin and ties into the roughly 4.5% annual earnings growth seen over the past five years.
• What stands out for the bullish view is that steady margins are being linked to product moves like NRS feature rollouts and net2phone’s AI agent, which are expected to support recurring revenue and adjusted EBITDA. However, the numbers here show a fairly consistent 6.5% margin rather than a clear step up so far.
  • Supporters highlight subscription growth and cost saving from AI features as potential tailwinds for earnings, while the trailing twelve month net income of US$81.9 million and earnings growth of about 4.5% a year show profit has been building but not yet reflecting the sharper 8.83% forecast pace.
  • Bulls also point to plans for ongoing share repurchases and dividends as EPS friendly, although the recent reported basic EPS range of about US$0.67 to US$0.89 per quarter shows that per share results have moved within a fairly tight band rather than breaking out decisively.

A lot of optimistic investors are watching whether these steady 6.5% margins can really support faster earnings growth, so if you want to see how the full bull case stacks up against the numbers, check out 🐂 IDT Bull Case

Revenue Forecast To Slip 1.6% Per Year

• Analysts expect revenue to decline by about 1.6% per year over the next three years, even though trailing twelve month revenue sits at a solid US$1.26b and recent quarterly revenue has held in a band of roughly US$302 million to US$323 million.
• Bears focus on this expected revenue drift and argue that reliance on areas like BOSS Money for working capital, plus acquisition driven expansion, could pressure profitability if volumes soften or integration costs rise. This contrasts with the current picture of a 6.5% net margin on US$81.9 million of net income.
  • Critics highlight that if revenue edges down from the current US$1.26b level while working capital needs in BOSS Money stay heavy, operating cash flows could feel tighter, even if reported earnings hold near the recent US$20 million to US$22 million per quarter range.
  • They also flag external factors like foreign exchange effects on net2phone and possible shifts in federal immigration policy for BOSS Money and NRS, which could weigh on transaction volumes. This would add further pressure if the forecast revenue decline of 1.6% a year plays out alongside those risks.

If you are weighing these caution flags against the current profits, the full bear case sets out how these risks could matter in detail, so it is worth reading 🐻 IDT Bear Case

P/E Of 15x Versus DCF Fair Value Signal

• At a share price of US$49.16, the stock trades on a P/E of 15x, compared with a peer average of 5.8x and a Global Telecom industry average of 16.3x, while a DCF fair value in the dataset is US$361.33 and there is an analyst price target reference of US$80.00 that both sit well above the current price.
• Consensus style thinking here is pulled in two directions, with critics pointing to the P/E premium versus peers and supporters pointing to the gap between US$49.16 and both the US$361.33 DCF fair value and the US$80.00 analyst target. The earnings track record of US$81.9 million trailing twelve month net income growing around 4.5% a year and forecast at 8.83% supports the idea that profits, not just hope, sit behind those higher valuation markers.
  • On one side, a 15x P/E compared with 5.8x for peers can make the stock look expensive next to similar companies, especially with revenue forecast to decline 1.6% a year, which gives bears a straightforward relative value argument.
  • On the other, the large

    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.

    After weighing both the upbeat and cautious points, it is worth taking a closer look at the numbers yourself and forming a view quickly. To see how the trade off between the potential upsides and concern areas compares in one place, take a look at 3 key rewards and 1 important warning sign.

    See What Else Is Out There

    IDT pairs steady 6.5% margins and modest earnings growth with a 15x P/E, a forecast 1.6% annual revenue decline, and reliance on working-capital-hungry businesses.

    If that mix of premium pricing, soft revenue outlook, and cash demands makes you cautious, it is worth checking our 47 high quality undervalued stocks that combine stronger value support with solid fundamentals right now.

    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.

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