Innodata (NASDAQ:INOD) Issues Quarterly Earnings Results

Innodata (NASDAQ:INOD) released its quarterly earnings data on Thursday. The technology company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.12, FiscalAI reports. Innodata had a net margin of 13.84% and a return on equity of 36.84%. The firm had revenue of $95.62 million during the quarter, compared to analysts’ expectations of $83.32 million. During the same period in the previous year, the business posted $0.24 earnings per share. The company’s revenue for the quarter was up 52.8% compared to the same quarter last year.

Here are the key takeaways from Innodata’s conference call:

• Innodata reported record Q3 revenue of $95.6 million, up 53% year over year, marking its 13th consecutive quarter of growth. Adjusted EBITDA was $17.7 million, adjusted gross margin reached its 40% target, and diluted EPS of $0.29 exceeded consensus.
• The company raised its 2026 growth outlook to 42% or more. New business included a $29 million pre-training program and an additional approximately $18 million program with a major customer, plus five programs at another hyperscaler that Innodata expects could contribute more than $20 million in 2027.
• A program with Innodata’s historically largest customer is ending, which management expects will reduce Q4 revenue by about $12 million. The company expects new programs to help replace the revenue by Q1, but said timing is not certain and did not provide project-level margin details.
• Management sees potential growth in physical AI, agent-training environments, trust and safety, specialized training data, enterprise AI, and federal work. These are developing opportunities: several remain in pilots, discussions, or staged government awards, rather than established revenue streams.
• Innodata ended the quarter with approximately $154 million in cash, net of customer prepayments, and no debt, generating $19.3 million in underlying cash during the quarter. Management said organic investment is its capital-allocation priority, with selective M&A also under consideration.

Innodata Stock Performance

NASDAQ:INOD traded down $1.59 during mid-day trading on Friday, reaching $37.03. 3,423,361 shares of the company’s stock were exchanged, compared to its average volume of 1,790,425. Innodata has a one year low of $34.23 and a one year high of $125.14. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.73 and a current ratio of 1.73. The business’s fifty day simple moving average is $56.96 and its two-hundred day simple moving average is $61.06. The firm has a market capitalization of $1.27 billion, a PE ratio of 27.03 and a beta of 3.11.

Insider Transactions at Innodata

In other Innodata news, Director Louise Forlenza sold 10,000 shares of the business’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $53.54, for a total value of $535,400.00. Following the completion of the sale, the director owned 5,424 shares of the company’s stock, valued at $290,400.96. The trade was a 64.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 11.80% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Innodata in a research report on Thursday, October 29th. Zacks Research downgraded shares of Innodata from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 11th. BWS Financial reiterated a “top pick” rating and issued a $140.00 price target on shares of Innodata in a research note on Friday, September 18th. Finally, Yorkville Ives began coverage on Innodata in a research note on Monday, October 5th. They set an “outperform” rating and a $90.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $116.67.

Innodata News Roundup

Here are the key news stories impacting Innodata this week:

• Positive Sentiment: Third-quarter revenue rose 52.8% year over year to $95.62 million, beating estimates of $83.32 million. Earnings of $0.29 per share also topped expectations, while strong AI-data demand and new customer programs supported higher growth guidance. Article: Innodata Q3 Earnings & Revenues Top Estimates on Strong AI Data Demand
• Positive Sentiment: BWS Financial maintained its Buy rating and $140 price target, citing the strong quarter and broader customer base. Article: Innodata’s Strong Q3 and Broader Customer Base Support Buy Rating
• Negative Sentiment: Innodata’s 2026 revenue guidance of $357.4 million was slightly below the $359.7 million consensus estimate. Although the company raised its growth outlook, reported margin pressure may have tempered enthusiasm after the earnings beat.

Innodata Company Profile

Innodata Inc (NASDAQ: INOD) is a global data engineering and technology company that helps organizations prepare, manage and use information for digital transformation and artificial intelligence initiatives. Its services are designed to support the development, training, evaluation and deployment of AI and machine-learning systems.

The company provides data annotation and labeling, data collection and preparation, content transformation, document processing, natural-language services, and generative AI support.