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Days after a rally, Innodata shares fell nearly 20% before the opening bell on October 27, 2026, following a report of nearly 550 layoffs in India and the Philippines. The investigation concerns whether investors may not have been adequately informed of the risk of a reduction in business that reportedly led to the workforce reduction.
Data center and power demand, along with mission-critical projects, give these construction stocks, like INOD, AGX, TREX, PWR and STRL, strong growth momentum.
A messy, abrupt round of international layoffs spooked investors who fear Innodata just lost a major AI client.
Innodata (INOD) shares plunged over 25% on Tuesday morning as reports of substantial layoffs rattled confidence in the artificial intelligence (AI) data specialist. Nearly 550 employees in India reportedly lost their jobs, with cuts also reported in the Philippines; the company hasn't, however, confirmed the overall scale of the reductions.
Innodata Inc (INOD) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
INOD's 12-quarter revenue growth streak rides on booming AI demand, but customer concentration and uncertain new opportunities could test its momentum.
Nebius currently demonstrates higher overall revenue generation than Innodata, leading the comparison in five of the eight available quarters. Both companies managed to increase total revenue over the last eight quarters, though Nebius reported larger quarter-over-quarter gains while Innodata maintained a more gradual growth trajectory.
INOD's AI-driven revenue growth and improving margins fuel optimism, but its premium valuation, stock weakness and customer concentration raise concerns.