Innodata (INOD) fell 26% after reports of more than 550 layoffs in India and the Philippines, which the article says were tied to a reduction in business assignments rather than individual performance. Q2 revenue rose 58% year over year and net income doubled, yet full-year guidance implies 40% revenue growth, below Q1's 54%, which the article reads as a possible slowdown. The article questions whether the work reduction is tied to Q3, to hyperscalers moving work in-house, or to competitors, and says investors will need to wait for guidance in the Q3 2026 report due Nov. 5. It also argues that other AI stocks are posting stronger guidance and gaining market share faster, so the upside appears less compelling.
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Innodata (INOD) shares fell 26.4% as of 12:26 p.m. ET after reports of job cuts in India and the Philippines hit the news wires. According to termination emails reviewed by regional news outlets, the company reportedly laid off nearly 550 employees in India on Monday, plus an undisclosed number in the Philippines, which the article puts at more than 5% of its workforce. The company cited a “ramp-down of the business assignment” rather than individual performance, and the article suggests a major client unexpectedly pulled out of a large project, raising concerns about lower future revenue. Even after the steep drop, the stock still trades at 27 times forward earnings estimates, and Innodata is scheduled to report third-quarter earnings on Nov. 5, when the earnings call is expected to clarify the financial impact and whether other contracts are at risk.
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