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Innodata Inc. INOD reported better-than-expected fourth-quarter 2025 results with adjusted earnings per share (EPS) and revenues topping the Zacks Consensus Estimate. Year over year, the top line grew while the bottom line tumbled.
INOD stock tumbled 3.6% during yesterday’s after-market trading session.
The quarterly performance reflects strong demand for its data engineering and AI systems services and increased subscriptions to its Agility AI-enabled industry platform. This growth was somewhat offset by lower contributions from the Synodex segment.
On the other hand, elevated selling and administrative expenses alongside high direct operating costs pulled back the bottom line’s growth during the fourth quarter.
Nonetheless, moving into 2026, Innodata expects to develop its growth momentum stemming from increased demand for frontier model training, agentic AI and physical AI, alongside its evolution from a data supplier to a strategic lifecycle partner of most advanced AI initiatives
The company reported an adjusted EPS of 25 cents, surpassing the Zacks Consensus Estimate of 21 cents by 19.1%. In the year-ago quarter, it reported an adjusted EPS of 31 cents.
Revenues of $72.4 million also topped the consensus mark of $69 million by 4.2% and grew 22.3% year over year.
Innodata Inc price-consensus-eps-surprise-chart | Innodata Inc Quote
Adjusted gross profit increased year over year by 6% to $30.1 million, with the adjusted gross margin contracting 600 basis points (bps) to 42%.
DDS Segment: This segment’s revenues increased to $64.6 million from $51.3 million reported a year ago. Adjusted gross profit increased year over year by 8.9% to $25.5 million, with the adjusted gross margin contracting 700 bps to 39%.
Synodex Segment: This segment’s revenues declined to $1.6 million from $2.1 million reported a year ago, due to the termination of a contract with one customer. Adjusted gross profit tumbled year over year by 56.4% to $0.4 million, with the adjusted gross margin contracting 1,800 bps to 24% from 42%.
Agility Segment: This segment’s revenues increased to $6.1 million from $5.8 million reported a year ago. Adjusted gross profit increased year over year by 1.9% to $4.2 million, with the adjusted gross margin declining 300 bps to 67%.
During the year, Innodata’s revenues were up year over year by 48% to $251.7 million.
Adjusted gross profit was up year over year to $108 million from $73.1 million, with the adjusted gross margin remaining flat at 43%.
Adjusted EPS was 92 cents, up 3.4% from 89 cents reported in 2024.
As of 2025, Innodata had cash and cash equivalents of $82.2 million, up from $46.9 million at 2024-end. Long-term debt (net of current portion) was $7.6 million as of Dec. 31, 2025, up from $6.7 million as of 2024.
Net cash provided by operating activities was $46.8 million as of 2025, up from $34.9 million in the year-ago period.
The company expects 35% or more of organic revenue growth year over year.
It also expects continued transformative growth in 2026, given the new award wins and strong market momentum.
Innodata currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EMCOR Group, Inc. EME reported impressive fourth-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
EMCOR’s quarterly results reflect the benefits of strong demand in core end markets and customers’ confidence in its ability to deliver on complex projects. Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance. EMCOR expects 2026 annual revenues to be in the band of $17.75-$18.5 billion and EPS within $27.25-$29.25.
Comfort Systems USA, Inc. FIX delivered stellar fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.
Comfort Systems’ quarterly performance reflects robust demand trends in the public infrastructure market, with strong growth in the technology sector, particularly in data centers. Besides, the company’s results benefited from the Feyen Zylstra, Meisner, Right Way, Century, Summit and J&S acquisitions, alongside increased same-store activity. In 2025, Comfort Systems paid its shareholders $217.9 million through share repurchases and $68.8 million through dividends.
Quanta Services, Inc. PWR reported record fourth-quarter 2025 results, driven by robust demand in its Electric Infrastructure Solutions segment and contributions from recent acquisitions.
Quanta’s growth was primarily fueled by accelerating utility investments, power generation and load-center related projects, along with incremental contributions from acquired businesses, including Tri-City, Wilson and Billings. For 2026, Quanta expects revenues between $33.25 billion and $33.75 billion, reflecting double-digit growth. GAAP EPS is projected to be in the range of $8.36-$9.06, while adjusted EPS is expected to be in the range of $12.65-$13.35. It is supported by record backlog, continued utility spending and anticipated contributions from recent acquisitions.
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This article originally published on Zacks Investment Research (zacks.com).
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