Innodata Inc.: Beat — EPS $0.29, Revenue $95.62M
Earnings BeatQ3 2026 · After-market
Did Innodata Inc. (INOD) beat earnings?
Yes, Innodata Inc. (INOD) beat Wall Street analyst expectations for Q3 2026, reporting higher-than-expected EPS and higher-than-expected revenue.
Earnings Per Share+61.11% surprise
$0.29Actual
Expected: $0.18
vs. year ago +20.8%
Total Revenue+13.26% surprise
$95.62MActual
Expected: $84.42M
vs. year ago +53.0%
Released Nov 05 · 4:05 PM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $95.62M | $62.55M | +53.0% |
| Net Income | $10.33M | $8.34M | +24.0% |
| GAAP Basic EPS | $0.30 | $0.26 | +15.4% |
| GAAP Diluted EPS | $0.29 | $0.24 | +20.8% |
Financial Outlook / Guidance
| Metric | FY26 Outlook |
|---|---|
| Guidance | |
| Revenue Growth | 42% or more YoY (prev. 40% or more |
FY26 Outlook
- Revenue Growth
- Guidance42% or more YoY(prev. 40% or more
Business Highlights
- ➤A formerly sub-5% customer became the largest customer in Q3.
- ➤Signed an additional Q4 program valued at approximately $18M with its largest customer.
- ➤Won five new programs with a large hyperscaler.
- ➤Added five new logos, including model builders and an enterprise data platform.
- ➤Launched a motion capture lab for humanoid robot and world-model training.
- ➤Conducting pilots with leading frontier and robotics labs.
- ➤Added enterprise-AI relationships with a global technology hardware company and major financial-services firm.
- ➤Received a verbal Federal contract win valued at $5M annually for five years.
- ➤Federal practice won programs through prime partners in its first year.
Management Commentary
Rahul Singhal, CEO
“Q3 was another record revenue quarter for Innodata. Revenue of $95.6 million grew 53% year-over-year and exceeded analyst consensus by approximately $12.3 million, or 15%, marking our 13th consecutive quarter of year-over-year growth. Adjusted EBITDA of $17.7 million exceeded consensus by approximately 15%, net income of $10.3 million grew 24% year-over-year, and fully diluted earnings per share of $0.29 beat consensus by approximately 70%. This is my first earnings report as CEO, and I am pleased to be starting with results like these.”
Rahul Singhal, CEO
“The story of the quarter is the breadth of what we are winning. A customer that represented less than 5% of our revenue a year ago became our largest customer in Q3, giving us two customers of comparable scale and meaningfully advancing our diversification. We have already signed an additional program with this customer in Q4 valued at approximately $18 million. Separately, we won five new programs with a large hyperscaler from which we generated approximately $3.1 million of revenue in the trailing 12 months; based on those wins, we are now forecasting more than $20 million of revenue from this customer in 2027. We also added five new logos in Q3, including model builders and an enterprise data platform.”
Rahul Singhal, CEO
“We believe we are on the cusp of a profound market opportunity in physical AI. We understand that capital is flowing into robotics and embodied intelligence faster than into any category since the LLM boom began, and robot foundation models improve with data the same way LLMs do. We launched our motion capture lab in September for humanoid robot and world model training, and we are in pilots with leading frontier and robotics labs. We anticipate just one of these pilots, if successful, will yield approximately $7 million in revenue in 2027.”
Rahul Singhal, CEO
“We also continue to gain traction beyond the frontier labs. In enterprise AI, we added new relationships with a global technology hardware company and a major financial services firm. In Federal, we have a verbal win for a contract valued at $5 million per year for five years, which we expect to sign by the end of the fourth quarter; it would be the third program our Federal practice has won through our prime partners in its first year.”
Rahul Singhal, CEO
“With this momentum, we are raising our full-year 2026 revenue growth guidance to 42% or more year-over-year, up from 40% or more, even after absorbing the wind-down of a program at one of our large customers that we expect to be replaced by new programs in Q1. We believe we are positioned at the center of the most important transition in AI - the move to agents, reinforcement learning and embodied intelligence - and of the trust and safety work that we believe will be required to make the transition succeed. These are, at their core, data challenges, and they are squarely in our wheelhouse. I believe 2026 will finish as a strong year for Innodata, and that 2027 will prove even more exciting. It is a privilege to be leading this company at this moment.”