Innodata(US:INOD) ZACKS·2025-09-08 16:51Core Insights - Innodata Inc. (INOD) is focusing on the transformative shift towards Agentic AI, emphasizing the importance of "smart data" for enterprise adoption rather than just raw scale [1][8] - The company is expanding its relationships with major technology clients, with one client significantly increasing its scope of work and another evolving into a multi-million-dollar engagement [2][8] - Innodata is investing in custom pipelines, simulation datasets, and safety evaluation platforms to support agent-based AI, which are seen as essential for enterprises aiming for reliability and compliance in their AI systems [3][8] Competitive Landscape - Microsoft Corporation (MSFT) is pursuing Agentic AI through its cloud platform, integrating agent services across Azure and its productivity suite, leveraging its infrastructure and partnerships with OpenAI [4] - Unisys Corporation (UIS) is focusing on enterprise workflow automation with agentic AI in IT services, emphasizing domain-specific implementations to enhance efficiency and reduce costs [5] Financial Performance - Innodata's shares have declined by 10.6% over the past three months, compared to a 3.8% decline in the industry [6] - The company trades at a forward price-to-sales ratio of 4.9, which is significantly higher than the industry's average of 1.66 [9] - The Zacks Consensus Estimate indicates a projected decline of 16.9% in earnings per share (EPS) for 2025, followed by a 42.3% increase in 2026, with recent estimates for both years having increased [10]