Do Expanding Big-Tech Contracts Push Innodata Toward a Stronger 2026?

Innodata Inc. INOD is strengthening its position in the rapidly evolving AI ecosystem as expanding engagement from major technology companies begins to shape expectations for 2026. The company has been broadening its capabilities across AI training, evaluation, pretraining data creation, federal AI initiatives and sovereign AI programs. With multiple growth vectors now taking hold simultaneously, Innodata appears increasingly aligned with industry demand for higher-quality data and integrated AI lifecycle support.

In the third quarter of 2025, the company delivered record revenues of $62.6 million, reflecting 20% year-over-year growth driven by rising enterprise activity and continued Big Tech demand. This performance highlights the strong execution underway, but the more important catalysts relate to new program wins that have significant implications for 2026.

A major development is the company’s expansion into large pretraining data programs. Innodata secured $68 million in new pre-training data wins, including $42 million in signed contracts and an additional $26 million expected soon. These programs span five customers and are only beginning to ramp, positioning them as material contributors in 2026. The company also obtained a $25 million project with a new strategic federal customer, viewed as the first of several, along with verbal confirmation of a sizable expansion with its largest customer.

Additionally, a $6.5 million verbal commitment from another Big Tech company and growing discussions with key AI and sovereign AI entities further enhance the outlook. Collectively, these expanding Big-Tech contracts suggest Innodata is moving toward a stronger and potentially transformative 2026.

Competitive Landscape: Key Players Strengthening AI Services Momentum

Innodata operates in a rapidly scaling AI services market, where strong data engineering, model training support and enterprise delivery capabilities are critical. One notable competitor is TaskUs TASK, which provides outsourced digital operations and data annotation support to major technology platforms. TaskUs has been expanding its AI-focused service portfolio, particularly in content safety and data labeling for model refinement. Its ability to scale global delivery centers positions TaskUs as a credible rival for large-volume enterprise contracts.

Another relevant competitor is EPAM Systems EPAM, a global digital engineering and consulting firm that leverages its deep software development and cloud expertise to help enterprises build and deploy AI applications. EPAM’s integrated approach to data infrastructure, model integration and application modernization enables it to compete for end-to-end transformation deals. While Innodata specializes more in AI data quality and model training workflows, EPAM’s broader consulting reach allows it to influence strategic technology investment decisions.

INOD’s Price Performance, Valuation & Estimates

Shares of Innodata have gained 31% in the past six months compared with the industry’s 4.7% growth.

INOD Six-Month Price Performance

From a valuation standpoint, INOD trades at a forward price-to-earnings ratio of 48.82, much higher than the industry’s average of 17.13.

P/E (F12M)

The Zacks Consensus Estimate for INOD’s 2025 earnings has increased to 89 cents from 78 cents in the past 30 days. 

INOD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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