Innodata (INOD) is well positioned for transformational revenue growth in fiscal 2026 as demand for its AI data engineering and annotation services accelerates and momentum from new deal wins continues, Wedbush Securities said in a Thursday research note.

Innodata's deal with Palantir Technologies (PLTR) to provide training data and data engineering services for Palantir's AI-enabled platforms represents another major validation point for the company, the analysts wrote, highlighting accelerating demand for high-quality data engineering as AI becomes increasingly critical to enterprise value creation.

The company is also expected to further diversify its revenue base beyond hyperscaler customers into new sectors, including federal, enterprise and global sovereign AI markets, amid the rapid growth of the data annotation industry, according to the note.

The brokerage added that shifting competitive dynamics following Meta's investment in Scale AI have enhanced Innodata's market positioning and increased opportunities to win new business.

Wedbush reiterated its outperform rating on the stock and price target of $90 per share.

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