Innodata reiterates full-year 2026 revenue growth guidance of 40% or more year-over-year
Company says large potential programs from new and existing customers not yet included in guidance
Company expects continued diversification of customer base and research-driven growth in AI
Overview
US data engineering firm's Q2 revenue up 58% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 up 92% yr/yr, beating analyst expectations
Company announces planned CEO transition effective September 30, 2026
Result Drivers
Revenue mix shift - Co said higher adjusted gross margin was driven by increased sales of off-the-shelf datasets and high-value pre-training programs
Customer base diversification - Co said revenue was less concentrated, with largest customer accounting for 37% of revenue, down from 56% in Q1, and Big Tech customer increasing to 34%
Research-driven growth - Co cited new programs in agentic reinforcement learning and release of AI datasets and benchmarks as supporting growth
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Innodata Inc. is $120.00, about 73% above its August 5 closing price of $69.37
The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 42 three months ago
INOD•
