Globant SA (GLOB) Q2 2026 Earnings Report

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.

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).