Innodata Stock Plunges 33% in a Month, Zacks Maintains Hold Rating

Industry
โดย Zacks Investment Research·Read original
Summary · why it matters

Innodata shares have dropped 33% over the past month, far underperforming the Zacks Engineering - R and D Services industry's 3.5% decline and the S&P 500's 0.7% gain. The company reported record first-quarter 2026 revenue of $90.1 million, up 54% year over year, with adjusted gross margin expanding to 47% and adjusted EBITDA nearly doubling to $25 million. Management raised its 2026 revenue growth outlook to approximately 40% or more, citing stronger customer demand and new engagements, including a Big Tech customer expected to generate roughly $51 million in 2026 revenue. Despite the strong fundamentals, the stock still trades at a forward 12-month price-to-earnings multiple of 45.96, well above the industry average of 29.81, leading Zacks to maintain a Hold rating. Competitors TaskUs, Cognizant Technology Solutions, and EPAM Systems continue to expand their AI services, intensifying competitive pressure.

Impact on stocks 4

Artificial Intelligence▼ · 4 stocks
Innodata Inc
INOD
▼ NegativeCapitalrelevance

Stock plunged 33% in a month and Zacks maintains Hold rating due to high P/E multiple.

EPAM Systems Inc
EPAM
▼ NegativeCompetitionrelevance

Article notes EPAM is expanding AI services, intensifying competitive pressure on Innodata.

Taskus Inc
TASK
▼ NegativeCompetitionrelevance

Article notes TaskUs is expanding AI services, intensifying competitive pressure on Innodata.

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