TLDR
- Innodata posted Q1 2026 EPS of $0.42, beating the $0.23 forecast by 83%
- Revenue hit $90.1 million, up 54% year-over-year, topping estimates by 25%
- Adjusted EBITDA of $25 million beat consensus by 139%
- Full-year 2026 revenue growth guidance raised to ~40% or more, up from ~35%
- A new Big Tech engagement is expected to generate ~$51 million in revenue this year
Innodata posted record Q1 2026 results after the bell on May 7, with revenue and earnings both clearing Wall Street estimates by a wide margin. The stock rose 1.33% in aftermarket trading to $47.13.
Revenue came in at $90.1 million, up 54% year-over-year and 24% sequentially. That beat the consensus estimate of $72.1 million by around 25%.
EPS landed at $0.42 on a diluted basis, well above the $0.23 forecast. That’s an 83% earnings surprise — not the kind of beat you see every quarter.
$INOD Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $90.1M (Consensus beat by 18%) 🟢; +54% YoY
🔹 Adj. EBITDA: $25.0M (Consensus beat by 139%) 🟢
🔹 Adj. Gross Profit: $42.6M
🔹 Adj. Gross Margin: 47%
🔹 Net Income: $14.9MFY26 Guide:
🔹 Revenue Growth: ~40%+ YoY, raised from ~35%+… pic.twitter.com/5AI38Q8sUn— Wall St Engine (@wallstengine) May 7, 2026
Adjusted EBITDA reached $25 million, or 28% of revenue — up from $12.7 million in the same period last year. That’s a 96% year-over-year jump, and it beat consensus by 139%.
Adjusted gross margin expanded to 47%, up from the prior year period.
Cash, cash equivalents and short-term investments stood at $117.4 million as of March 31 — a $35.1 million increase from year-end 2025. The company carries no meaningful debt, and its Wells Fargo credit facility, recently expanded from $30 million to $50 million, remains undrawn.
Guidance Raised Again
Innodata raised its full-year 2026 revenue growth guidance to approximately 40% or more, up from the ~35% it guided to just ten weeks ago.
CEO Jack Abuhoff said the updated guidance is still being treated as conservative, noting several potentially large programs have not yet been included in the forecast.
New Big Tech Deal Adds to the Pipeline
The company also announced a new set of engagements with a major Big Tech company — unnamed — expected to generate approximately $51 million in revenue this year.
Twelve months ago, revenue from that customer was zero. Innodata now expects it to become their second-largest customer in 2026.
Revenue from other Big Tech customers, in aggregate, grew 453% year-over-year in Q1. Meanwhile, the company’s largest customer is expected to represent a smaller share of total revenue for the full year, even as absolute dollar revenue with that customer grows.
Innodata also launched its Evaluation and Observability Platform in beta during the quarter — a control plane for agentic AI systems. Shortly after launch, the company closed its first platform deal, valued at $1 million, with a hyperscaler customer.
Fifteen additional companies are currently evaluating the platform. Innodata is also in discussions with two leading hyperscalers about potential channel partnerships.
One of the company’s researchers had two papers accepted at the 2026 International Conference on Machine Learning (ICML), with one receiving a “Spotlight” designation — placing it in roughly the top 2% of nearly 24,000 submissions.
Despite the strong quarter, INOD is still trading well below its 52-week high of $93.85. Analysts currently have price targets ranging from $75 to $110.
The stock carries a beta of 2.4 and a P/E ratio of 50.17.
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