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Globant SA
(NYSE:GLOB)
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Rating:72Outperform
Price Target:
$41.00
▲(30.99% Upside)
Action:Upgraded
Date:08/18/26
GLOB scores well primarily due to strong cash flow generation and a conservatively levered balance sheet, which help offset the clear slowdown in revenue growth and margin compression. The latest earnings call adds a positive longer-term angle from rapid AI ARR and pipeline expansion, but is tempered by reduced full-year guidance, near-term margin pressure, and optimization/FX headwinds. Technicals are mixed (near-term improvement but still below longer-term averages), while valuation looks reasonable at ~14.5x earnings.
Positive Factors
AI platform growth and higher-margin delivery
Rapid AI ARR and pipeline expansion, combined with structurally higher AI Pod margins, can shift Globant toward more recurring, scalable revenue. Partnerships and growing client adoption strengthen its competitive position in enterprise AI services.
Negative Factors
Slowing revenue growth and reduced guidance
The sharp deceleration from prior double-digit growth signals softer demand and a more mature operating environment. Lower guidance indicates that AI expansion has not yet offset broader weakness, limiting near-term scale benefits and execution flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
AI platform growth and higher-margin delivery
Rapid AI ARR and pipeline expansion, combined with structurally higher AI Pod margins, can shift Globant toward more recurring, scalable revenue. Partnerships and growing client adoption strengthen its competitive position in enterprise AI services.
Read all positive factors
Globant SA (GLOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)2.11M
Price to Earnings (P/E)14.1
Beta (1Y)1.27
Revenue Growth-1.26%
EPS Growth2.59%
CountryUS
Employees28,510
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.58
Shares Outstanding43,179,558
10 Day Avg. Volume1,540,919
30 Day Avg. Volume2,107,603
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)1.40
Price to Sales (P/S)1.20
P/FCF Ratio11.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$43.83Price Target Upside40.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.2
Revenue Forecast (FY)$2.47B
Globant SA Business Overview & Revenue Model
Company Description
Globant S.A., together with its subsidiaries, provides technology services in the United States, rest of North America, Latin America, Europe, and internationally. The company offers Digital Studio, which integrates artificial intelligence into th...
How the Company Makes Money
Globant makes money primarily by delivering IT services and digital transformation work to enterprise clients under commercial service contracts. Revenue is largely generated from professional services—such as custom software engineering, applicat...
Globant SA Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call balanced clear, high-impact progress on the company's AI-native strategy (Glob.AI and AI Pods) — including rapid ARR growth, expanding pipeline, strong top-account performance, productivity gains, platform launch and strategic partnerships — against near-term operational and macro headwinds: region-specific project delays, FX pressure, below-target utilization, a one-time optimization charge, and a modest downward revision of full-year revenue and margin guidance. Management emphasized deliberate investment in the AI transition and cost optimization to protect margins while positioning for recurring, higher-margin revenue over time.Positive Updates
Rapid Glob.AI ARR Expansion
Glob.AI ARR reached $52.8 million as of June, up from $32.8 million in March — roughly 60% growth in one quarter — and management expects to exit 2026 at no less than $110 million in Glob.AI ARR.
Negative Updates
Full-Year Revenue Guidance Revised Lower
Full-year revenue guidance was reduced to $2,428 million–$2,462 million (from $2,462 million–$2,508 million) and Q3 revenue guidance set at $607 million–$615 million, reflecting region- and industry-specific headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Rapid Glob.AI ARR Expansion
Glob.AI ARR reached $52.8 million as of June, up from $32.8 million in March — roughly 60% growth in one quarter — and management expects to exit 2026 at no less than $110 million in Glob.AI ARR.
Read all positive updates
Company Guidance
The company updated guidance and key metrics showing Q2 revenue of $614.4M (up 1.2% sequentially), adjusted gross margin 36.5%, adjusted SG&A 18.6%, adjusted operating margin 13.2%, adjusted net income $60.3M (9.8% margin) and adjusted diluted EPS $1.40; Glob.AI ARR rose to $52.8M (from $32.8M in March, ~60% q/q) and is expected to exceed $110M by year-end, with AI Pod revenue ~2% of total today (target ~4% by year-end) and Glob.AI gross margins ~10 percentage points above traditional delivery. Pipeline is $436.8M (vs. $352M in Q1), revenue per head run-rate $95,800 (up 9.7% YoY), Data & AI Studio ~11% of sales (≈35% YoY growth), 96% of revenue from repeat customers, top 20/top 50/top 10 client growth +6.6%/+6.9%/+4.4% YoY, cash & short-term investments $168.8M, net debt $253.1M, Q2 FCF $12.6M and H1 FCF $48.7M. Management recorded a one-time $32.3M Q2 charge (expect ~$20–25M more in Q3) and provided Q3 revenue guidance $607–615M, Q3 adjusted operating margin 13.5%–14.5%, Q3 adjusted diluted EPS $1.43–1.53 (43.2M shares), and revised full‑year revenue $2.428B–$2.462B, FY adjusted operating margin 13.5%–14.5%, IFRS tax rate 21%–23% and FY adjusted diluted EPS $5.75–$6.15 (43.6M shares).Globant SA Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.45B | 2.45B | 2.42B | 2.10B | 1.78B | 1.30B |
| Gross Profit | 790.73M | 859.29M | 863.37M | 755.76M | 669.39M | 494.99M |
| EBITDA | 306.59M | 299.46M | 417.01M | 357.95M | 314.85M | 215.62M |
| Net Income | 113.41M | 102.92M | 165.73M | 158.54M | 148.89M | 96.06M |
Balance Sheet | ||||||
| Total Assets | 3.23B | 3.32B | 3.17B | 2.73B | 2.20B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 168.81M | 250.34M | 158.24M | 327.26M | 343.73M | 461.68M |
| Total Debt | 517.85M | 473.64M | 410.16M | 277.84M | 138.84M | 146.72M |
| Total Liabilities | 1.06B | 1.16B | 1.13B | 931.18M | 639.63M | 576.22M |
| Stockholders Equity | 2.11B | 2.09B | 1.96B | 1.73B | 1.51B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 318.49M | 261.22M | 220.99M | 191.72M | 102.09M | 101.34M |
| Operating Cash Flow | 327.53M | 280.45M | 248.73M | 318.52M | 197.52M | 178.97M |
| Investing Cash Flow | -119.50M | -161.60M | -403.90M | -350.36M | -269.30M | -272.88M |
| Financing Cash Flow | -214.60M | -16.75M | -5.81M | 44.53M | -65.68M | 243.99M |
Globant SA Technical Analysis
Negative
31.30
Price Trends
34.00
Positive
38.29
Negative
48.99
Negative
Market Momentum
1.24
Positive
53.78
Neutral
31.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLOB, the sentiment is Negative. The current price of 31.3 is below the 20-day moving average (MA) of 36.40, below the 50-day MA of 34.00, and below the 200-day MA of 48.99, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLOB.
Globant SA Risk Analysis
Globant SA disclosed 13 risk factors in its most recent earnings report. Globant SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globant SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.57B | 14.05 | 5.33% | ― | -1.26% | 2.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.66B | 13.86 | 4.06% | ― | -2.42% | -65.01% | |
54 Neutral | $1.21B | -3.63 | -7.00% | ― | -3.50% | 16.13% | |
54 Neutral | $1.42B | -1.09 | -41.80% | 6.47% | 3.89% | -681.89% |
* Technology Sector Average
GLOB
Globant SA
37.31
-31.34
-45.65%
DXC
DXC Technology
10.50
-3.47
-24.84%
CLVT
Clarivate
1.89
-2.53
-57.24%
CNXC
Concentrix
23.67
-22.85
-49.12%
Globant SA Corporate Events
Globant Leans Into AI as Q2 2026 Revenue Holds Steady and Glob.AI ARR Surges
Aug 13, 2026
Globant reported its second-quarter 2026 results on August 13, 2026, posting revenue of $614.4 million, broadly flat year-on-year, while improving IFRS operating margin to 3.2% and generating $12.6 million in free cash flow versus a negative figur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.