| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 39.4x | 17.8x | Bottom tier | |
Growth | 91 | 39.0% | 7.1% | Top tier | |
Quality | 95 | 31.7% | 4.5% | Top tier | |
Safety | 82 | — | 2.6x | Top tier | |
Capital Return | 17 | 0.00% | 2.12% | Bottom tier | |
Momentum | 42 | 43.4% | 2.9% | Around median | |
Sentiment | 23 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Innodata Inc. operates as a data and intelligence infrastructure partner for companies developing foundation models, as well as enterprise and government clients. Its work includes creating data for pre-training, mid-training, and post-training, advanced reasoning data and agent trajectories, along with model evaluation, trust and safety services, responsible AI, and data required for robotics and physical AI. It also seeks to increase revenue that is not linearly tied to headcount through ready-made datasets that can be resold and proprietary platforms for evaluating, improving, and simulating attacks on agents.
In Q1 fiscal 2026, Innodata generated record revenue of $90.1 million, up 54% year over year and 24% compared with revenue of $72.4 million in Q4 fiscal 2025, while exceeding analyst consensus by approximately $13.6 million, or 18%. Net income was $14.9 million, and diluted earnings per share were $0.42 versus consensus of $0.08, while adjusted gross profit was $42.6 million at a 47% margin, and adjusted earnings before interest, taxes, depreciation, and amortization were $25 million at a 28% margin. Cash increased to $117.4 million, a quarterly increase of $35.1 million, while the $50 million Wells Fargo credit facility remained undrawn.
The company now reports its results as a single operating segment instead of the former PDF, Agility, and Synodex segments, so separate revenue contributions for each activity are unavailable for Q1 fiscal 2026. Nevertheless, the call showed that the growth base is broadening: combined revenue from other technology clients grew 453% year over year, while management expects the largest client to continue growing in absolute terms as its share of total revenue declines. For fiscal 2025, revenue was $251.7 million, gross profit was $99.5 million, and net income was $32.2 million.
The average analyst target is $120, identical to both the highest and lowest targets, versus a consensus Buy rating; this target is approximately 4% below the 52-week range high of $125.14, while the low end of the range is $34.23. No published price-to-earnings ratio is available in the data, despite trailing 12-month earnings per share of approximately $1.10, so the stock's valuation here depends heavily on sustained revenue and margin growth and the conversion of potential contracts into actual revenue, while the uniform analyst target must be weighed against client concentration risk and variability in program timing.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Growth came from the expansion of AI data work across pre-training, mid-training, post-training, evaluation, and trust and safety. Q1 fiscal 2026 revenue increased 54% to $90.1 million, followed by an August 7, 2026, report stating that Q2 fiscal 2026 revenue grew 58%. Revenue from technology clients outside the largest account also grew 453% year over year in Q1 fiscal 2026.
Innodata believes the new engagements could generate $51 million in revenue in fiscal 2026 and make the client its second-largest. Revenue from this client was zero 12 months before the May 8, 2026, call, illustrating how quickly the relationship expanded. The work includes pre-training, mid-training, and post-training data, with evaluation services also expected to be added.
Adjusted gross profit was $42.6 million in Q1 fiscal 2026, at a 47% margin following a sequential improvement of six percentage points. Adjusted earnings before interest, taxes, depreciation, and amortization were $25 million, or 28% of revenue, exceeding analyst consensus by approximately 139%. Net income also increased to $14.9 million, but the 14% effective tax rate benefited from tax advantages and was below the company's long-term target of 23% to 25%.
Automated analysis for informational purposes only — not investment advice.
Innodata launched the platform in beta in Q1 fiscal 2026 to evaluate agent behavior, inspect execution trajectories, monitor performance, detect regressions, and maintain audit logs. The company signed the platform's first major engagement, worth $1 million, with a hyperscaler client. As of May 8, 2026, 15 other companies were evaluating the platform, and the company was discussing potential distribution partnerships with two leading hyperscalers.
Client concentration remains prominent because a single engagement could generate $51 million and become the company's second-largest account in fiscal 2026, alongside an existing larger client. Model-training programs may also start and stop, and their phases do not always proceed regularly, which is why management did not provide quarterly guidance. Opportunities such as distribution partnerships and potential federal contracts also remain at stages that do not guarantee revenue, while insiders recorded net sales of $36.4 million over the three months through June 16, 2026, although these sales may have been prearranged.
Innodata ended Q1 fiscal 2026 with cash of $117.4 million, up from $82.2 million at the end of fiscal 2025. The company attributed the $35.1 million increase to profitability, working capital management, and upfront payments from pre-training program clients. It also expanded its Wells Fargo credit facility from $30 million to $50 million for a three-year term, and the facility remained undrawn at quarter-end.
