Innodata (INOD) Shares Rise 28.9% Amid Strong AI Market Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
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Source: Fool
- Significant Revenue Growth: Innodata's revenue surged 61% year-over-year to $179.3 million in the first three quarters of 2023, although growth slowed to 20% in Q3, indicating strong market demand.
- Improved Profitability: Adjusted EBITDA increased by 106% to $42.2 million during the same period, demonstrating the company's superior profitability in the AI data labeling sector compared to many smaller tech stocks, boosting investor confidence.
- Market Validation: Meta's $14 billion acquisition of Scale AI further validates the potential of the data labeling industry, with Innodata benefiting from its unique position as a small-cap player in the AI space.
- Future Growth Opportunities: The company anticipates an additional $25 million in revenue by 2026 from a new high-profile client, while investments in pre-training data capabilities are expected to generate $68 million in revenue, showcasing its expansion potential in new markets.
Analyst Views on INOD
Wall Street analysts forecast INOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for INOD is 93.75 USD with a low forecast of 80.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 59.440
Low
80.00
Averages
93.75
High
110.00
Current: 59.440
Low
80.00
Averages
93.75
High
110.00
About INOD
Innodata Inc. is a global data engineering company. It provides a range of transferable solutions, platforms, and services for generative artificial intelligence (AI)/AI builders and adopters. Its Digital Data Solutions segment provides AI data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. It also provides a range of data engineering support services. Its Synodex segment provides an industry platform that transforms medical records into useable digital data organized in accordance with its proprietary data models or customer data models. Its Agility segment provides an industry platform that provides marketing communications and public relations professionals with the ability to target and distribute content to journalists and social media influencers worldwide and to monitor and analyze global news channels (print, Web, radio and TV) and social media channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
