Investing
Innodata (INOD) Rises After Hours on Q3 Beat, Guidance Raise
Innodata Q3 revenue rose 53% to $95.6 million, beating consensus by 15%, and the company raised its 2026 growth guidance; shares rose 7.8% after hours.
Innodata (NASDAQ: INOD) shares rose 7.79% in after-hours trading on November 5, 2026, after the data engineering company released its third-quarter results. The driver was record Innodata Q3 revenue of $95.6 million, up 53% year over year and about 15% above analyst consensus (the average of analysts' forecasts).
What Innodata reported in Q3
| Metric | This period | A year earlier | Change |
|---|---|---|---|
| Revenue | $95.6 million | $62.6 million | +53% |
| Adjusted EBITDA | $17.7 million | $16.2 million | +9% |
| Net income | $10.3 million | $8.3 million | +24% |
| Diluted EPS | $0.29 | $0.24 | +21% |
| Adjusted gross margin | 40% | 44% | -4 points |
Adjusted EBITDA is profit before interest, taxes, depreciation and items such as stock-based compensation. Adjusted gross margin is the share of revenue left after direct costs, excluding some non-cash items. The company raised its full-year 2026 revenue growth guidance (its own forecast) to about 42% or more, from about 40% or more, even after absorbing the wind-down of a program at one large customer that it expects new programs to replace in Q1.
Cash and cash equivalents reached $164.0 million on September 30, 2026, up from $82.2 million at the end of 2025. A customer that made up less than 5% of revenue a year ago became Innodata's largest in Q3, giving it two customers of comparable size.
Why the stock rose 7.8% after hours
This is an early after-hours read on thin volume and can change by the next session's open. The results beat expectations across several lines: adjusted EBITDA topped consensus by about 15%, and diluted earnings per share of $0.29 beat consensus by about 70%, according to the company. The higher growth forecast, combined with a broader customer base, added to the beat. This marked Innodata's 13th consecutive quarter of year-over-year revenue growth.
What to watch next
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An additional Q4 program with its now-largest customer, valued at about $18 million.
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Five new hyperscaler programs, with more than $20 million of revenue forecast from that customer in 2027.
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A verbal Federal win worth $5 million a year for five years, expected to be signed by end of Q4.
FAQ
How much revenue has Innodata made in 2026 so far?
Revenue for the nine months to September 30, 2026 was $277.9 million, up from $179.3 million in the same period of 2025.
What is Innodata doing in physical AI?
It launched a motion capture lab in September for humanoid robot and world model training and is running pilots with frontier and robotics labs. CEO Rahul Singhal said one pilot, if successful, could bring about $7 million of revenue in 2027.
Sources
This article is for information only and is not investment advice.