Innodata Inc. (NASDAQ:INOD) shares surged in premarket trading Friday after the artificial intelligence data engineering company reported first-quarter results that topped Wall Street estimates and raised its full-year 2026 revenue outlook.

Innodata Revenue Growth And Earnings Beat

Revenue rose 54% year over year to $90.096 million, beating analyst estimates of $76.469 million. Adjusted earnings came in at 42 cents per share, above consensus expectations of 17 cents.

Adjusted gross profit increased to $42.6 million, with margin expanding to 47%. Adjusted EBITDA climbed to $25 million from $12.7 million a year earlier.

The company ended the quarter with $117.4 million in cash, cash equivalents and short-term investments as of March 31, 2026.

Reporting Structure Changes

Beginning in the first quarter, Innodata will report results as a single operating segment. Previously, the company disclosed results across its DDS, Agility and Synodex divisions.

Innodata 2026 Outlook Raised

CEO Jack Abuhoff said the company is increasing its full-year 2026 revenue growth forecast to "approximately 40% or more year-over-year," up from prior guidance of approximately 35% or more issued 10 weeks ago.

Innodata expects full-year revenue of about $352.38 million, above analyst estimates of $341.5 million.

Big Tech Customer Expansion

Abuhoff also disclosed new engagements with a major Big Tech customer expected to generate about $51 million in revenue this year.

"Twelve months ago, our revenue from this customer was zero; this year we expect it to become our second-largest customer, and we see considerable headroom both within the current program and across additional programs we are actively discussing," he said.

Abuhoff added that the company expects its largest customer to account for a smaller share of total revenue in 2026 even as absolute revenue from that customer increases. Revenue from Innodata's other Big Tech customers collectively rose 453% year over year in the first quarter.

Innodata Stock Price Reaction

INOD Price Action: Innodata shares were up 43.73% at $65.59 during premarket trading on Friday, according to Benzinga Pro data.

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