Globant SA (GLOB) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.41
• Revenue Growth: 8.66%
• EPS Growth: -35.78%
• Country: US
• Employees: 31,280
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.53
• Shares Outstanding: 44,045,560
• 10 Day Avg. Volume: 1,277,699
• 30 Day Avg. Volume: 1,417,076
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 17.93
• 1Y Price Target: $84.75
• Price Target Upside: 37.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $69.00 ▲(12.05% Upside)

Globant SA's strong financial performance and strategic initiatives in AI contribute significantly to its stock score. While technical indicators show mixed signals, the company's fair valuation and positive earnings call outlook support a favorable assessment. Challenges in profitability margins and free cash flow conversion are areas to watch.

Positive Factors

Strategic AI Initiatives

The adoption of AI Pods indicates strong demand for Globant's AI solutions, enhancing its market position and driving future revenue growth.

Record Pipeline Growth

A robust pipeline suggests sustained demand and potential for future revenue growth, reflecting effective strategic initiatives and market positioning.

Strategic Partnerships

Partnerships with leading tech firms enhance Globant's service offerings and competitive edge, supporting long-term growth and innovation.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could limit Globant's ability to invest in growth and strategic initiatives.

Workforce Reduction

Workforce reduction may impact employee morale and productivity, potentially affecting service delivery and operational efficiency.

North America Revenue Decline

Declining revenue in a key market like North America could signal challenges in maintaining growth momentum and market share.

Globant SA Business Overview & Revenue Model

Company Description

Globant SA (GLOB) is a technology services company that specializes in software development, IT services, and digital transformation. Founded in 2003 and headquartered in Luxembourg, Globant operates across various sectors, including finance, healthcare, travel, and entertainment. The company focuses on providing a range of services such as application development, cloud computing, artificial intelligence, and user experience design, catering to both large enterprises and innovative startups.

How the Company Makes Money

Globant generates revenue primarily through its consulting and professional services. The company employs a model that combines project-based work with long-term service contracts, enabling it to deliver tailored technology solutions to its clients. Key revenue streams include custom software development, system integration, and IT outsourcing services. Additionally, Globant has established partnerships with major technology companies, such as Google, IBM, and Salesforce, which not only enhance its service offerings but also contribute to its earnings through collaborative projects and joint initiatives. The company's focus on emerging technologies and digital transformation services positions it well in a growing market, helping to drive consistent revenue growth.

Globant SA Financial Statement Overview

Summary

Globant SA shows strong growth and a solid financial position, supported by robust revenue increases and a healthy balance sheet. While profitability margins have faced some pressure, the company's low leverage and strong equity base provide stability. Cash flow generation is positive, though there is room for improvement in converting earnings to free cash flow.

Income Statement

Globant SA demonstrates strong revenue growth with a TTM increase of 8.8%, indicating robust demand for its services. The gross profit margin remains stable at around 36%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 6.2% in the TTM, suggesting some pressure on profitability. EBIT and EBITDA margins have also seen a decline, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.20, indicating conservative leverage. The return on equity is moderate at 7.98%, showing decent profitability relative to shareholder equity. The equity ratio stands at 62.4%, reflecting a strong capital structure with significant equity financing.

Cash Flow

Globant SA's cash flow performance is solid, with a free cash flow growth rate of 11.4% in the TTM, highlighting effective cash generation. The operating cash flow to net income ratio is 0.45, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio of 0.87 indicates that a significant portion of earnings is not translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.42B	2.10B	1.78B	1.30B	814.14M
Gross Profit	895.03M	863.37M	755.76M	669.39M	494.99M	304.33M
EBITDA	248.56M	405.14M	361.54M	317.25M	218.08M	135.43M
Net Income	112.20M	165.73M	158.54M	148.89M	96.06M	54.22M
Balance Sheet
Total Assets	3.40B	3.17B	2.74B	2.19B	1.89B	1.29B
Cash, Cash Equivalents and Short-Term Investments	184.13M	158.24M	324.76M	347.39M	462.44M	299.80M
Total Debt	536.65M	410.16M	277.84M	138.84M	146.72M	113.57M
Total Liabilities	1.21B	1.13B	948.74M	636.34M	581.92M	408.83M
Stockholders Equity	2.12B	1.96B	1.73B	1.51B	1.31B	879.94M
Cash Flow
Free Cash Flow	245.25M	220.99M	191.72M	102.09M	101.34M	46.41M
Operating Cash Flow	265.43M	248.73M	318.52M	197.52M	178.97M	99.87M
Investing Cash Flow	-421.58M	-403.90M	-350.36M	-269.30M	-272.88M	-124.02M
Financing Cash Flow	211.80M	-5.81M	44.53M	-65.68M	243.99M	241.55M

Globant SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLOB, the sentiment is Positive. The current price of 61.58 is above the 20-day moving average (MA) of 59.47, above the 50-day MA of 60.15, and below the 200-day MA of 107.70, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLOB.

Globant SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	―	―	―	21.23%	―	1.94%	26.15%
GLOB	―	$2.64B	23.81	5.66%	―	8.66%	-35.78%
DXC	―	$2.32B	6.31	12.60%	―	-4.93%	497.03%
CNXC	―	$2.51B	8.52	7.08%	3.37%	3.40%	53.13%
ASGN	―	$1.91B	15.10	7.25%	―	-4.86%	-25.15%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLVT	―	$2.25B	―	-7.60%	―	-2.96%	71.30%

Globant SA Corporate Events

Globant Announces $125 Million Share Repurchase Program

On September 30, 2025, Globant S.A.’s board of directors approved a new share repurchase program, allowing up to $50 million per quarter, with a total cap of $125 million, for repurchasing common shares from Q4 2025 to Q4 2026. This initiative, announced on October 1, 2025, is part of Globant’s strategy to enhance shareholder value and is supported by its free cash flow generation. The program reflects Globant’s confidence in its long-term strategy and commitment to investing in strategic growth initiatives, while allowing flexibility in repurchase methods and timing based on market conditions.

Globant’s Q2 2025 Results Highlight Strategic AI Shift

On August 14, 2025, Globant announced its second-quarter financial results for 2025, highlighting strategic investments and a shift towards a new business model centered around AI. The company reported revenues of $614.2 million, a 4.5% year-over-year increase, and an adjusted operating margin of 15.0%. Despite a one-time charge of $47.6 million for a Business Optimization Plan, Globant’s pipeline reached a record $3.7 billion, indicating strong demand for its AI-driven solutions. This positions Globant as a full-stack AI company, aiming to redefine the professional services industry with its subscription model and AI Pods.