Innodata (INOD) is expected to have room to beat its early fiscal 2026 outlook as its deal pipeline is growing and revenue could come from more sources, including Mag 7 tech giants, AI labs and startups, and the newer Innodata Federal unit, Wedbush said in a note Friday.
The company's initial fiscal 2026 revenue growth outlook of more than 35% year-over-year is above Street expectations for mid 20% growth and could prove conservative, the investment firm said.
Wedbush said it sees sustained demand for data annotation work from large tech customers and improved competitive positioning as some hyperscalers shift away from new business tied to Scale AI.
Innodata Federal, launched in November, is set to become a larger part of revenue as the company expands beyond hyperscalers, Webdush said.
The firm kept its outperform rating but cut its price target to $75 from $90 to reflect a lower valuation multiple.
Price: 44.90, Change: -2.68, Percent Change: -5.63
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