Innodata (INOD) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Innodata published the results on November 5, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison.

• In Q1 2026 Innodata concluded that it operates as a single reportable segment, so it no longer reports revenue by segment.
• Innodata's cash of $164.0 million at September 30, 2026 includes customer prepayments for pass-through costs. Innodata puts cash net of those prepayments at about $153.7 million.

Source: Innodata Q3 2026 results, November 5, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

From the earnings release

In its Q3 2026 release, Innodata said:

“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.”

Source: Innodata Q3 2026 release, Nov 5, 2026.

This is the company's own guidance as of Nov 5, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the INOD forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP revenue and diluted EPS, each as first reported in that quarter's release.

We do not hold a confirmed date for Innodata's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Nov 5, 2026

Innodata's revenue comes from AI data engineering work for AI innovation labs, Big Tech companies (including five of the so-called "Magnificent Seven") and enterprises: training and post-training data, alignment and preference optimization, capability and safety evaluation, and AI enablement. Revenue was $95.6 million in Q3 2026, up 53% from $62.6 million, which the 10-Q attributes primarily to higher volume from existing customer programs. (Innodata Form 10-Q, Q3 2026, Nov 5, 2026)

Innodata's revenue is concentrated in two customers. One generated about 43% of total revenue in Q3 2026 and another about 31%; a year earlier the second of these alone generated about 56%, and no other customer reached 10%. Innodata's CEO said a customer that was less than 5% of revenue a year ago became the largest in Q3, and that Innodata has signed an additional program with it in Q4 valued at about $18 million. (Innodata Form 10-Q, Q3 2026, Nov 5, 2026; Innodata Q3 2026 release, Nov 5, 2026)

Innodata also said it won five new programs with a large hyperscaler that generated about $3.1 million of revenue over the trailing 12 months, and that it now forecasts more than $20 million of revenue from that customer in 2027. It added five new logos in Q3 and reported a verbal win in its Federal practice for a contract valued at $5 million per year for five years. (Innodata Q3 2026 release, Nov 5, 2026)

Most of Innodata's revenue comes from U.S. customers: non-U.S. customers were 11% of revenue in Q3 2026, against 16% a year earlier. Innodata reports a single segment since Q1 2026, when its CEO began reviewing results only on a consolidated basis. (Innodata Form 10-Q, Q3 2026, Nov 5, 2026)

Innodata's GAAP diluted EPS rose to $0.29 in Q3 2026 from $0.24, and net income to $10.3 million from $8.3 million, even though income before taxes fell to $10.0 million from $12.2 million. The difference was tax: Innodata recorded a tax benefit of $340 thousand, an effective rate of negative 3.4%, against a 31.5% rate a year earlier, helped by stock-based compensation windfalls, the U.S. FDDEI deduction and foreign tax credits. (Innodata Q3 2026 release, Nov 5, 2026; Innodata Form 10-Q, Q3 2026, Nov 5, 2026)

Costs grew faster than revenue. Direct operating costs rose 62% to $60.1 million, including about $21.0 million of content acquisition costs for AI projects, and gross margin fell to 37% from 41%. Selling and administrative expenses rose 96% to $26.9 million, including $9.2 million more in payroll and related costs for sales, marketing and administration. (Innodata Form 10-Q, Q3 2026, Nov 5, 2026; Innodata Q3 2026 release, Nov 5, 2026)

Innodata reports no adjusted EPS. Its Adjusted EBITDA, which adds back stock-based compensation among other items, was $17.7 million, or 18.5% of revenue, against $16.2 million. Stock-based compensation was $6.8 million in the quarter, against $2.7 million, and diluted shares were 35.6 million, against 35.3 million. (Innodata Q3 2026 release, Nov 5, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Innodata gives a full-year revenue growth target and no quarterly range. In the Q3 2026 release it raised its 2026 revenue growth guidance to 42% or more year over year, from 40% or more, and said this absorbs the wind-down of a program at one of its large customers that it expects new programs to replace in Q1. (Innodata Q3 2026 release, Nov 5, 2026)

Innodata's release says Q3 revenue exceeded analyst consensus by about $12.3 million, or 15%, and that diluted EPS of $0.29 beat consensus by about 70%. The release does not name the consensus source or date. (Innodata Q3 2026 release, Nov 5, 2026)

A consensus figure is the average of the models published by the analysts who cover Innodata, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Innodata's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning INOD is on is INOD a buy or a sell?, what analysts expect next is on the INOD forecast, and what the company does is on the Innodata (INOD) stock page.

Every number on this page can be traced to a document Innodata published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.