Innodata (NASDAQ:INOD) Releases Earnings Results, Beats Expectations By $0.12 EPS

Posted by George Bondi on Nov 7th, 2026

Innodata (NASDAQ:INOD – Get Free Report) posted its earnings results on Thursday. The technology company reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.12, FiscalAI reports. The company had revenue of $95.62 million during the quarter, compared to analyst estimates of $83.32 million. Innodata had a net margin of 13.84% and a return on equity of 36.84%. Innodata’s revenue for the quarter was up 52.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.24 earnings per share.

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 Down 4.1%

Shares of INOD traded down $1.59 on Friday, reaching $37.03. The stock had a trading volume of 3,423,361 shares, compared to its average volume of 1,790,425. The firm has a market capitalization of $1.27 billion, a price-to-earnings ratio of 27.03 and a beta of 3.11. 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 company has a 50-day simple moving average of $56.96 and a 200-day simple moving average of $61.06. Innodata has a 12-month low of $34.23 and a 12-month high of $125.14.

Innodata News Summary

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.

Insider Buying and Selling at Innodata

In related news, Director Louise Forlenza sold 10,000 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $53.54, for a total value of $535,400.00. Following the sale, the director directly owned 5,424 shares of the company’s stock, valued at $290,400.96. This represents a 64.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 11.80% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts have commented on INOD shares. BWS Financial reaffirmed a “top pick” rating and set a $140.00 price target on shares of Innodata in a research report on Friday, September 18th. Yorkville Ives initiated coverage on Innodata in a report on Monday, October 5th. They issued an “outperform” rating and a $90.00 price objective for the company. Zacks Research lowered Innodata from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Innodata in a research note on Thursday, October 29th. 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 stock. According to MarketBeat, Innodata currently has a consensus rating of “Moderate Buy” and an average price target of $116.67.

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Innodata Company Profile

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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.