By Dan Victor

Innodata stock rose sharply on Thursday following the announcement that it had been selected by Palantir Technologies to provide training data and annotation capabilities.

A Barron's stock pick, Innodata has returned 73% from our call in September 2025, including a 25% rally thus far this year to a recent price of $63.58. Today's announcement only supports our bullish view and we continue to recommend the stock.

Landing Palantir as a customer is a major win for Innodata, further validating its technical expertise and leadership in AI training solutions. The deal will focus on Palantir's event analytics and AI-powered rodeo modernization, according to a statement from Innodata. Financial terms weren't disclosed. Palantir will use Innodata's services to enable computer vision models that detect animal, rider, and skeleton joints for automated calculations and the display of sport performance metrics.

This emerging field of adapting "multimodal" data, including video, imagery, and sensors, is a more complex and higher-margin segment of AI training that expands Innodata's market opportunity. The technology is also critical in advanced robotics with potential defense sector applications.

The partnership also helps to diversify Innodata's customer base, beyond a current concentration in contracts with Magnificent Seven tech companies. In November, Innodata launched Innodata Federal, a unit targeting AI development for U.S. military and intelligence agencies, a segment that could lead to future engagements with Palantir as a possible growth driver.

Pending fourth-quarter results expected by late February, Innodata previously guided for full-year 2025 organic revenue growth of 45% or more. For 2026, Wall Street estimates forecast annual revenue growth of 26% alongside a 28% increase in earnings per share to $1.12. Shares currently trade at 56 times forward earnings.

On Jan. 28, Wedbush analyst Dan Ives reiterated a Buy rating on the stock with a price target of $90 -- implying 41% upside from the latest price.

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January 29, 2026 13:44 ET (18:44 GMT)

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