TLDR
- Innodata Q1 revenue came in at $90.1 million, up 54% year over year, well above Wall Street’s estimate of ~$76.5 million.
- EPS hit $0.42, nearly double last year’s $0.22, and far above the $0.08 consensus estimate.
- The company added a new Big Tech client expected to generate $51 million in revenue this year.
- Full-year revenue growth guidance was raised to 40%+ from a prior target of 35%+.
- Maxim Group analyst Allen Klee set a Street-high price target of $111, implying 35% upside from ~$82.
Innodata reported first-quarter revenue of $90.1 million on Thursday, up 54% year over year. The stock surged roughly 80% on the day, trading around $82.
The result blew past the Wall Street consensus estimate of around $76.5 million. It was a clean beat across every line.
EPS came in at $0.42, almost double the $0.22 posted a year ago. Analysts had expected just $0.08.
The company also lifted its full-year revenue growth guidance. The new target is 40% or more, up from the prior guidance of 35% or more.
New Big Tech Client Addresses Concentration Risk
One of the cleaner storylines from this quarter was customer diversification. Innodata’s largest client accounted for 58% of revenue in 2025, which had been a concern for some investors.
That picture is starting to change. The company announced a new engagement with “one of the world’s leading Big Tech companies.” That client is expected to generate around $51 million in revenue this year and become Innodata’s second-largest customer.
CEO Jack Abuhoff said the largest account continues to grow in absolute dollars, while the rest of the customer base is growing even faster.
He also noted several potentially large pipeline programs that have not yet been factored into guidance.
Back in January, Innodata was selected by Palantir Technologies to provide AI services in multimodal data — work covering video, imagery, and sensor data with potential uses in defense and robotics.
The company is also seeing rising demand for solutions supporting agentic AI systems.
Analyst Reaction
Wedbush raised its price target on INOD to $80 from $75, keeping an Outperform rating. Analyst Dan Ives kept the stock on the firm’s IVES AI 30 list, pointing to strong Q1 execution and continued demand for its AI solutions.
Maxim Group’s Allen Klee went further, setting a Street-high target of $111 — implying 35% upside from recent levels.
The stock is now up more than 127% since Barron’s featured it as a pick last September.
Trading at around 55 times forward earnings, INOD is not cheap. But analysts point to its growth rate and position in AI data infrastructure as justification for the premium.
Innodata’s most recent guidance puts full-year revenue growth at 40% or higher, with the new Big Tech client and expanding pipeline forming the base of that outlook.
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