Innodata Inc. (INOD) AI Stock Analysis

Innodata Inc. operates globally as a data engineering company organized into three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment specializes in AI-enabled software platforms and managed services that support organizations in training AI and machine learning algorithms, providing data annotation, transformation, curation, hygiene, and consolidation. Synodex offers a platform that converts medical records into actionable digital data for healthcare analytics. The Agility segment serves marketing communications and public relations professionals by providing platforms for targeted content distribution to journalists and influencers, alongside global media monitoring. Innodata serves clients in banking, insurance, financial services, technology, digital retailing, and information/media.

Innodata expanded annual revenue from $69.8M in FY2021 to $251.7M in FY2025, posting a 5-year revenue CAGR of 34.0%. Net income shifted from -$1.7M in FY2021 and -$11.9M in FY2022 to positive net income of $28.7M in FY2024 and $32.2M in FY2025. Gross margin expanded from 37.6% in FY2021 to 39.7% in FY2025, while operating margin rose from -2.2% to 16.0% over the same period. For the trailing twelve months, revenue reached $317.2M with a net profit margin of 14.7% and EPS of $1.29. In the latest quarter ended June 30, 2026, quarterly revenue increased 57.8% year-over-year, and quarterly earnings grew 105.0% year-over-year.

As of June 30, 2026, Innodata held $250.4M in cash and short-term investments against total debt of $15.0M, resulting in net cash of $235.3M. The company reported a current ratio of 1.73 and a debt-to-equity ratio of 0.09 on shareholders' equity of $159.5M. Operating cash flow grew to $46.8M in FY2025, yielding free cash flow of $35.6M. In FY2025, Innodata allocated $11.1M to capital expenditures and $3.3M to share buybacks. The 5-year share count change was 28.1%.

Innodata trades at a trailing P/E of 40.9x and a forward P/E of 31.3x, both above the US-listed Technology peers medians of 28.1x and 18.8x, respectively. The stock's price-to-sales ratio stands at 5.7x, compared to the peer median of 2.8x, while its EV/EBITDA is 35.0x against the peer median of 16.6x. The company has a PEG ratio of 0.87. Over the trailing 1-year period, Innodata shares fell 35.2%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year span, Innodata gained 415.3%, outperforming the S&P 500 return of 83.0%.

Innodata is covered by 4 analysts, with 3 rating the stock a Strong Buy and 1 rating it a Buy. The mean price target is $122.75, representing an upside of 132.4% over the last close of $52.82. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.65, reflecting 78.8% growth, on revenue of $359.6M. For the following fiscal year, 3 analysts project EPS of $2.09 and revenue of $460.0M. Innodata beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of Innodata Inc. (INOD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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