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The Zacks Analyst Blog Highlights Innodata, ExlService and Cognizant Technology Solutions
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For Immediate Release
Chicago, IL – August 13, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Innodata Inc. (INOD - Free Report) , ExlService Holdings, Inc. (EXLS - Free Report) and Cognizant Technology Solutions Corporation (CTSH - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Innodata Reaffirms 40% Growth Outlook: Is More Upside Ahead?
Innodata Inc. entered the second half of 2026 with strong momentum after reaffirming its expectation for at least 40% year-over-year revenue growth. Importantly, management said several large potential engagements with existing and new customers are not yet included in the outlook, suggesting room for upside if those opportunities convert.
The confidence follows another record quarter. Second-quarter revenues jumped 58% year over year to $92.1 million, while adjusted EBITDA surged 92% to $25.4 million. Adjusted gross margin reached 49%, nine percentage points above the company's publicly stated 40% target, helped by high-value pretraining programs and proprietary off-the-shelf datasets.
Growth is also becoming more diversified. Innodata's largest customer accounted for 37% of second-quarter revenues, down sharply from 56% in the first quarter, while a newer Big Tech customer expanded to 34% from 17%. The company also added a fast-scaling frontier AI lab.
Beyond existing programs, agentic reinforcement learning, model evaluation, cybersecurity and physical AI could broaden Innodata's growth runway. The company is scaling long-horizon agent programs, developing enterprise AI assurance capabilities and pursuing large multimodal and robotics data opportunities.
Still, upside may not arrive smoothly. Management acknowledged that project timing could produce sequential revenue declines in individual quarters. Nonetheless, with major prospective wins excluded from guidance, improving customer diversification and expanding AI use cases, Innodata's 40% outlook appears to leave scope for stronger growth if pipeline conversion remains healthy.
Innodata vs. Key AI Services Rivals: Who Has the Growth Edge?
Innodata operates in a competitive AI data engineering and digital services market, with ExlService Holdings, Inc. and Cognizant Technology Solutions Corporation among its relevant publicly traded peers. Innodata itself identifies both ExlService and Cognizant among broader technology and business-process providers offering overlapping services.
ExlService is increasingly focused on data, analytics and AI-led services, making it a meaningful competitor as enterprises increase spending on generative AI and automation. However, Innodata’s reaffirmed 40%-plus 2026 revenue growth outlook highlights a faster near-term growth trajectory, supported by frontier-model work, agentic AI and model evaluation.
Cognizant brings considerably greater scale, enterprise relationships, and broader technology capabilities. That scale gives Cognizant an advantage when competing for large transformation programs. Yet Innodata’s specialization in AI data engineering, post-training, evaluation and deployment support provides differentiation. If Innodata converts its unrecognized pipeline opportunities, it could strengthen its growth position against both ExlService and Cognizant.
INOD’s Price Performance, Valuation & Estimates
Shares of Innodata have gained 23.1% year to date (YTD), lagging the industry’s growth.
From a valuation standpoint, INOD trades at a forward 12-month price-to-earnings ratio of 43.72, higher than the industry’s average.
The Zacks Consensus Estimate for INOD’s 2026 sales and earnings implies year-over-year growth of 42.1% and 28.3%, respectively. Earnings per share estimates for 2026 have increased over the past seven days, as you can see below.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Innodata, ExlService and Cognizant Technology Solutions
For Immediate Release
Chicago, IL – August 13, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Innodata Inc. (INOD - Free Report) , ExlService Holdings, Inc. (EXLS - Free Report) and Cognizant Technology Solutions Corporation (CTSH - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Innodata Reaffirms 40% Growth Outlook: Is More Upside Ahead?
Innodata Inc. entered the second half of 2026 with strong momentum after reaffirming its expectation for at least 40% year-over-year revenue growth. Importantly, management said several large potential engagements with existing and new customers are not yet included in the outlook, suggesting room for upside if those opportunities convert.
The confidence follows another record quarter. Second-quarter revenues jumped 58% year over year to $92.1 million, while adjusted EBITDA surged 92% to $25.4 million. Adjusted gross margin reached 49%, nine percentage points above the company's publicly stated 40% target, helped by high-value pretraining programs and proprietary off-the-shelf datasets.
Growth is also becoming more diversified. Innodata's largest customer accounted for 37% of second-quarter revenues, down sharply from 56% in the first quarter, while a newer Big Tech customer expanded to 34% from 17%. The company also added a fast-scaling frontier AI lab.
Beyond existing programs, agentic reinforcement learning, model evaluation, cybersecurity and physical AI could broaden Innodata's growth runway. The company is scaling long-horizon agent programs, developing enterprise AI assurance capabilities and pursuing large multimodal and robotics data opportunities.
Still, upside may not arrive smoothly. Management acknowledged that project timing could produce sequential revenue declines in individual quarters. Nonetheless, with major prospective wins excluded from guidance, improving customer diversification and expanding AI use cases, Innodata's 40% outlook appears to leave scope for stronger growth if pipeline conversion remains healthy.
Innodata vs. Key AI Services Rivals: Who Has the Growth Edge?
Innodata operates in a competitive AI data engineering and digital services market, with ExlService Holdings, Inc. and Cognizant Technology Solutions Corporation among its relevant publicly traded peers. Innodata itself identifies both ExlService and Cognizant among broader technology and business-process providers offering overlapping services.
ExlService is increasingly focused on data, analytics and AI-led services, making it a meaningful competitor as enterprises increase spending on generative AI and automation. However, Innodata’s reaffirmed 40%-plus 2026 revenue growth outlook highlights a faster near-term growth trajectory, supported by frontier-model work, agentic AI and model evaluation.
Cognizant brings considerably greater scale, enterprise relationships, and broader technology capabilities. That scale gives Cognizant an advantage when competing for large transformation programs. Yet Innodata’s specialization in AI data engineering, post-training, evaluation and deployment support provides differentiation. If Innodata converts its unrecognized pipeline opportunities, it could strengthen its growth position against both ExlService and Cognizant.
INOD’s Price Performance, Valuation & Estimates
Shares of Innodata have gained 23.1% year to date (YTD), lagging the industry’s growth.
From a valuation standpoint, INOD trades at a forward 12-month price-to-earnings ratio of 43.72, higher than the industry’s average.
The Zacks Consensus Estimate for INOD’s 2026 sales and earnings implies year-over-year growth of 42.1% and 28.3%, respectively. Earnings per share estimates for 2026 have increased over the past seven days, as you can see below.
INOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.