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Innodata

INOD Q1 2026 Earnings

Reported May 7, 2026 at 4:15 PM ET · SEC Source

Q1 26 EPS

$0.42

BEAT +127.03%

Est. $0.19

Q1 26 Revenue

$90.1M

BEAT +17.82%

Est. $76.5M

vs S&P Since Q1 26

+38.6%

BEATING MARKET

INOD +38.0% vs S&P -0.6%

Market Reaction

Did INOD Beat Earnings? Q1 2026 Results

Innodata delivered a blowout first quarter for fiscal 2026, posting revenue of $90.10 million, a 54.4% year-over-year gain that cleared the $76.47 million consensus estimate by 17.82%, while earnings per diluted share of $0.42 nearly tripled the $0.1… Read more Innodata delivered a blowout first quarter for fiscal 2026, posting revenue of $90.10 million, a 54.4% year-over-year gain that cleared the $76.47 million consensus estimate by 17.82%, while earnings per diluted share of $0.42 nearly tripled the $0.18 Wall Street expected, representing a 127.03% beat. The driving force behind the outperformance was rapid expansion within Big Tech, most notably the announcement of new engagements with a major hyperscaler customer expected to generate roughly $51.00 million in revenue this year alone, a relationship that carried zero revenue just twelve months ago. Adjusted EBITDA reached $24.98 million, or 28% of revenue, up 96% from the prior-year period, reflecting deepening operating leverage as Innodata scales its agentic AI data services. Management lifted full-year 2026 revenue growth guidance to approximately 40% or more, up from the 35% or more guided only ten weeks prior, characterizing the raised outlook as prudent given several large programs not yet included in forecasts. Analysts tracking the company have noted its positioning as an outsourced data engineering arm for LLM creators, with structural cost advantages that continue to attract hyperscaler attention.

Key Takeaways

  • • 54% year-over-year revenue growth driven by expanding Big Tech customer relationships
  • • Adjusted EBITDA grew approximately 96% year-over-year demonstrating operating leverage
  • • Adjusted Gross Margin expanded to 47% from 43% in Q1 2025
  • • Revenue from other Big Tech customers (excluding largest) grew 453% year-over-year in aggregate

INOD Forward Guidance & Outlook

Innodata raised its full-year 2026 revenue growth guidance to approximately 40% or more year-over-year, up from approximately 35% or more guided ten weeks earlier. Management characterized this guidance as prudent, noting several potentially large programs not yet included in the forecast. The company expects its largest customer to represent a smaller percentage of total revenue in 2026 even as absolute dollar revenue from that customer increases. New Big Tech engagements are expected to generate approximately $51 million of revenue in 2026, with the related customer expected to become Innodata's second-largest. The company sees considerable headroom in current and additional programs under discussion.

24/7 Wall St

INOD YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

INOD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q4 25

“Q1 was a record-setting quarter for Innodata – and it was record setting by a wide margin. Revenue grew 54% year-over-year while Adjusted EBITDA grew approximately 96% – operating leverage by definition. We delivered a single quarter of revenue that exceeded our annual revenue of just three years ago. Just as importantly, our results demonstrate that the strategic position we have been building is translating into scale, margin expansion, and cash generation.”

— Jack Abuhoff, Q1 2026 Earnings Press Release

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