IDT (NYSE: IDT) stock outperformed many of its more recognized counterparts in the fintech and telecom sectors over the past week. Following a solid quarterly earnings report and a price target increase from an analyst, the company’s shares surged by about 17% during the five trading days, as reported by S&P Global Market Intelligence.
Calling on growth
This past Tuesday, IDT revealed its final financial results for fiscal 2026. The fourth quarter set new records in several areas, including gross profit and operational income.
In terms of key financial metrics, revenue increased by 7% year-over-year, hitting $339 million, thanks to growth across all four reporting segments. Notably, net income, as per GAAP, climbed 29% to nearly $22 million. On an adjusted basis, profit per share rose to $0.94, up from $0.76.
However, it was a somewhat mixed quarter for IDT; while it surpassed the analysts’ revenue expectation of $320 million, it fell short of the $0.97 forecast for adjusted net income.
Despite this, Freedom Broker analyst Mikhail Paramonov raised his price target for the stock to $85 per share, up from a previous target of $75, while maintaining a buy recommendation.
Grateful for good guidance
Stocks typically rely more on future potential than past performance. IDT has projected double-digit annual gross profit growth, estimating that it will reach between $545 million and $555 million in the current fiscal year.
Moreover, the company expects to set a new record for yearly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), forecasting between $176 million and $180 million.
IDT seems to be on a strong upswing, demonstrated by its broad revenue growth and robust margins. Personally, I think they could meet their ambitious goals for 2027, and the outlook appears positive.
Should you buy stock in IDT right now?
Before making any purchases of IDT stock, it’s worth considering this:
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