Q2 26 EPS GAAP
$0.41
BEAT +57.27%
Est. $0.26
Q2 26 Revenue
$92.1M
BEAT +6.75%
Est. $86.3M
Market Reaction
Did INOD Beat Earnings? Q2 2026 Results
Innodata delivered a blowout second quarter for fiscal 2026, with revenue of $92.14 million climbing 57.8% year over year and coming in 6.75% above the Wall Street consensus of $86.32 million, while GAAP diluted EPS of $0.41 beat the $0.26 consensus … Read more Innodata delivered a blowout second quarter for fiscal 2026, with revenue of $92.14 million climbing 57.8% year over year and coming in 6.75% above the Wall Street consensus of $86.32 million, while GAAP diluted EPS of $0.41 beat the $0.26 consensus by 57.27%, more than doubling the year-ago figure of $0.20. The single most material driver behind the beat was a favorable mix shift toward off-the-shelf datasets where Innodata retains intellectual property and monetizes assets across multiple customers, alongside high-value pre-training programs, which helped push adjusted gross margin to 49%, nine percentage points above the company's own 40% target. Customer diversification also stood out, as the largest customer fell to 37% of revenue from 56% in the prior quarter while a recently added Big Tech client scaled rapidly to 34%. The company's expanding AI capabilities, including new tools designed to improve the security and reliability of AI-generated code, underscore the depth of its technical positioning. Management reiterated full-year 2026 revenue growth guidance of 40% or more, noting that several large potential programs not yet reflected in that figure could prompt an upward revision once scope and timing are confirmed.
Key Takeaways
- • 58% year-over-year revenue growth driven by scaling Big Tech customer programs
- • Adjusted Gross Margin expansion to 49%, driven by off-the-shelf datasets with retained IP and high-value pre-training programs
- • Adjusted EBITDA grew 92% year-over-year to $25.4 million, demonstrating operating leverage
- • Customer diversification: largest customer declined from 56% to 37% of revenue while second Big Tech customer scaled from 17% to 34%
INOD Forward Guidance & Outlook
Innodata reiterated full-year 2026 revenue growth guidance of 40% or more year-over-year. Management noted there are large potential programs from both new and anticipated customers — described as likely wins — that are not yet factored into the 40% guidance figure. Once scope and timing are finalized, they will be included and guidance updated accordingly. The company expressed confidence that 2026 will be a tremendous year and is excited about opportunities in 2027 and beyond.
INOD YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
INOD Revenue by Segment
With YoY comparisons, source: SEC Filings
“Q2 was another record quarter for Innodata - and another across-the-board beat. Revenue, Adjusted Gross Profit, Adjusted EBITDA, and cash all reached new highs, and we exceeded analyst consensus on every key metric. Revenue of $92.1 million grew 58% year-over-year while Adjusted EBITDA grew 92% - operating leverage by definition.”
— Jack Abuhoff, Q2 2026 Earnings Press Release
INOD Earnings Trends
INOD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
INOD EPS Trend
Earnings per share: estimate vs actual
INOD Revenue Trend
Quarterly revenue: estimate vs actual
INOD Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.26 | $0.41 | +57.27% | $92.1M | +6.75% |
| Q1 26 BEAT | $0.19 | $0.42 | +127.03% | $90.1M | +17.82% |
| Q4 25 MISS FY | $0.26 | $0.25 | -3.85% | $72.4M | +4.19% |
| FY Full Year | — | $0.92 | — | $251.7M | — |
| Q3 25 BEAT | $0.16 | $0.24 | +50.00% | $62.6M | +4.63% |
| Q2 25 BEAT | $0.13 | $0.20 | +60.00% | $58.4M | +3.62% |