Innodata (INOD) posted strong Q1 results with "massive beats" while it also raised its 2026 revenue growth outlook to about 40% year on year amid significant demand for its AI products, Wedbush Securities said in a note Friday.

The company's Q1 revenue of $90.1 million was up 54% year on year and up 24% sequentially, "well above" the consensus estimate of $76.5 million as Innodata is "seeing accelerating momentum across its frontier AI lab customer base," the note said.

The investment firm also highlighted the fact that the company announced new engagements with a Big Tech company, which is expected to generate about $51 million in 2026 revenue.

Meanwhile, revenue from Innodata's other Big Tech clients, excluding its largest, rose 453% year on year during the quarter, the note said.

Wedbush kept Innodata's outperform rating and lifted the company's price target to $80 from $75.

Price: 86.71, Change: +41.07, Percent Change: +89.99