IDT CORP-CLASS B (NYSE:IDT) delivered a strong start to its fiscal year 2026, reporting first-quarter results that surpassed analyst expectations on both the top and bottom lines. The company’s strategic segments, particularly its Fintech and cloud communications units, showed explosive growth, driving record profitability. The market’s initial reaction has been decisively positive, with shares rising sharply in after-hours trading following the announcement.
Earnings and Revenue Beat
For the quarter, IDT reported revenue of $322.8 million, comfortably exceeding the consensus estimate of $311.1 million. The performance on profitability was even more pronounced.
- Reported Non-GAAP EPS: $0.94
- Analyst Estimate for Non-GAAP EPS: $0.89
This represents an earnings beat of approximately 5.8%. The company’s ability to grow revenue while expanding profitability points to effective execution and scaling within its newer business lines.
Segment Performance Highlights
The earnings press release underscored the powerful momentum in IDT’s growth-oriented segments, which are rapidly transforming the company’s profile away from its traditional communications roots. Income from operations saw dramatic year-over-year increases:
- National Retail Solutions (NRS): +35%
- Fintech (BOSS Money): +97%
- net2phone (Cloud Communications): +94%
This surge in operational income from its three key growth engines fueled what the company cited as “record quarterly levels of consolidated gross profit, Adjusted EBITDA and Adjusted EBITDA margin.” The Traditional Communications segment, while still a significant revenue contributor, is being overshadowed by the growth and expanding profitability of NRS, Fintech, and net2phone.
Market Reaction and Valuation Context
The financial markets rewarded the clear beat and robust segment growth. Following the earnings release, IDT’s stock rose approximately 4.6% in after-market trading. This positive move suggests investors are focusing on the accelerating profitability of the company’s strategic segments rather than any potential headwinds in its legacy businesses.
The stock’s performance over recent weeks has been mixed, with a slight gain over the past two weeks offset by a minor decline over the past month. The decisive after-hours pop indicates the Q1 report may be serving as a catalyst, reaffirming the growth narrative for investors.
Looking Ahead
While the press release did not provide a formal quantitative financial outlook, the reported results set a strong foundation for the fiscal year. Analyst estimates for the coming periods will likely be subject to revision following this report. Currently, consensus estimates for the full fiscal year 2026 project sales of $1.24 billion and earnings per share of $3.63.
For the upcoming second quarter, analysts are estimating revenue of $305.0 million and EPS of $0.88. The significant outperformance in Q1, especially in EPS, suggests there may be upside potential to these current forecasts if the segment growth trends continue.
For a detailed look at historical earnings, future estimates, and analyst revisions, review the full data on Chartmill: IDT Earnings & Estimates.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
