Earnings Release and Projections: Innodata Inc. is set to release its third-quarter 2025 results on November 6, with earnings per share (EPS) expected to decline by 60% year-over-year, while revenue is projected to grow by 14.5%.
Growth Drivers: The company's growth is attributed to strong demand for AI data services, new projects with major tech clients, and a shift towards providing "smart data" solutions, enhancing customer relationships and revenue streams.
Investment and Expenses: Innodata has increased its operational investments, which may pressure short-term profitability due to rising operating costs associated with growth initiatives, although these are seen as essential for long-term competitiveness.
Market Position and Valuation: Despite a significant stock surge of 229.1% over the past year, analysts express concerns about the stock being overvalued compared to industry peers, while the company is well-positioned to benefit from the ongoing AI transformation.
Wall Street analysts forecast EXLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EXLS is 52.25 USD with a low forecast of 49.00 USD and a high forecast of 55.00 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.
6 Analyst Rating
Wall Street analysts forecast EXLS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EXLS is 52.25 USD with a low forecast of 49.00 USD and a high forecast of 55.00 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.
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 42.770
Low
49.00
Averages
52.25
High
55.00
Current: 42.770
Low
49.00
Averages
52.25
High
55.00
TD Cowen
Buy
downgrade
$52 -> $51
Al Analysis
2026-01-09
Reason
TD Cowen
Price Target
$52 -> $51
Al Analysis
2026-01-09
downgrade
Buy
Reason
TD Cowen lowered the firm's price target on ExlService to $51 from $52 and keeps a Buy rating on the shares. The firm is "constructive" on services sector setup for 2026, anticipating gradual improvement in enterprise IT spend at a time when average valuations remain discounted.
JPMorgan
Puneet Jain
Overweight
downgrade
$56 -> $52
2025-08-20
Reason
JPMorgan
Puneet Jain
Price Target
$56 -> $52
2025-08-20
downgrade
Overweight
Reason
JPMorgan analyst Puneet Jain lowered the firm's price target on ExlService to $52 from $56 and keeps an Overweight rating on the shares. The firm updated targets in IT services post the Q2 reports, saying the sector is in the third straight year of below-average revenue growth. An improvement in growth is needed to drive higher valuation multiples, the analyst tells investors in a research note. JPMorgan is optimistic that sector growth will improve.
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Stifel
David Grossman
Strong Buy
Maintains
$48 → $54
2025-02-27
Reason
Stifel
David Grossman
Price Target
$48 → $54
2025-02-27
Maintains
Strong Buy
Reason
Needham
Mayank Tandon
Strong Buy
Maintains
$50 → $60
2025-02-27
Reason
Needham
Mayank Tandon
Price Target
$50 → $60
2025-02-27
Maintains
Strong Buy
Reason
About EXLS
ExlService Holdings, Inc. is a global data and artificial intelligence (AI) company. The Company provides data and AI-led and digital operations services to its clients. Its segments include Insurance; Healthcare and Life Sciences; Banking, Capital Markets and Diversified Industries; and International Growth Markets (IGM). The Company provides services to insurers in the areas of property and casualty, life, disability, annuity, and retirement services. It offers pre-and post-pay auditing services, payment analytics, payment integrity, a care management platform and services and patient navigation for healthcare payers. Its Banking and Capital Markets and Diversified Industries deliver solutions across retail and commercial banking, credit card services, payment services, fintech, banking infrastructure services, capital markets, mortgage services, utilities, and other business services industries. Its IGM is focused on global reach in growth markets outside North America.
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.
