Innodata (INOD) shares experienced a significant decline of 5.19% in after-hours trading on Thursday, reflecting a sharp negative reaction from investors following the company's latest financial report.

The data engineering company reported fourth-quarter diluted earnings per share of $0.25, which fell short of the consensus estimate of $0.26. This earnings miss occurred despite the company posting Q4 revenue of $72.4 million, exceeding the Ibes estimate of $69.5 million. The contrasting performance between the top and bottom lines appears to have driven the sell-off, as investors focused on the profitability shortfall.

Concurrently, Innodata provided optimistic forward guidance, anticipating approximately 35% or greater revenue growth in 2026 with expanding customer diversification. This positive outlook, however, was overshadowed by the immediate market reaction to the quarterly earnings disappointment in the post-market session.