InnodataINOD 79 Net Margin % is 16.54% as of Mar. 2026. GuruFocus rates INOD with a GF Score™ of 79/100 and a GF Value™ of $47.46 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,825 Software companies, Innodata ranks better than 82.94% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Innodata's Net Income for the
three
months ended in Mar. 2026 was $14.9 Mil. Innodata's Revenue for the
three
months ended in Mar. 2026 was $90.1 Mil. Therefore, Innodata's net margin for the quarter that ended in Mar. 2026 was 16.54%.
The historical rank and industry rank for Innodata's Net Margin % or its related term are showing as below:
INOD'
s Net Margin % Range Over the Past 10 Years
Min: -15.11 Med: -1.73 Max: 16.81
Current: 13.86
INOD's Net Margin % is ranked better than 82.94% of 2825
companies
in the Software industry
Industry Median: 2.54
vs INOD: 13.86
Innodata (NAS:INOD) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Innodata Net Margin % Related Terms
Innodata Net Margin % Historical Data
* Premium members only.
The historical data trend for Innodata's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Innodata's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Innodata Net Margin % vs Software Industry
For the Software industry and Technology sector, Innodata's Net Margin % distribution charts can be found below:
* The bar in red indicates where Innodata's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Innodata (INOD) has a Net Margin % of 16.54% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Innodata and its competitors. According to the industry distribution chart, Innodata ranks #482 out of 2825 companies in the Software industry, placing it in the top 17.1%.
Is Innodata's Net Margin % too high?
Innodata's current Net Margin % is 16.54%. The Software industry median Net Margin % is 2.54. Innodata's value of 16.54% is 551.2% above this industry median. Based on the distribution chart, Innodata ranks #482 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Innodata has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Innodata's Net Margin % compare to VNET and PENG?
According to the Software industry distribution chart, Innodata ranks #482 out of 2825 companies for Net Margin %. This places Innodata in the top 17% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Innodata's value of 16.54% is 551.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Innodata's current Net Margin % of 16.54% is 551.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Innodata and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Innodata's current Net Margin % is 16.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Innodata stock overvalued right now?
Based on GuruFocus' analysis, Innodata (INOD) is currently considered Significantly Overvalued. The stock's GF Value™ is $47.46, compared to a current price of $81.55 — trading 71.8% above its estimated fair value. The current Net Margin % is 16.54% and 551.2% above the Software industry median of 2.54. Innodata's overall GF Score™ is 79/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Innodata (INOD), the current Net Margin % is 16.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Innodata (INOD) Overvalued in 2026?
Based on GuruFocus' analysis, Innodata stock appears to be overvalued.
The current stock price of $81.55 is trading 71.8% above its estimated GF Value™ of $47.46.
GuruFocus considers Innodata to be Significantly Overvalued.
Key valuation signals for INOD:
Net Margin %: 16.54%
GF Value™: $47.46 vs. price of $81.55 (71.8% above fair value)
Industry Position: 551.2% above the Software median (#482 of 2825)
No single metric tells the full story. See the INOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Innodata Inc is a data engineering company. It is helping companies deploy and integrate AI into their operations and products and providing AI-enabled industry platforms. The Company's operations are classified in three reporting segments: Digital Data Solutions (DDS), Synodex and Agility. Key revenue is generated from DDS segment provides AI data preparation services, collecting or creating training data, annotating training data, and training AI algorithms for its customers, and AI model deployment and integration. It also provides a range of data engineering support services including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management.
79GF Score
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