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Globant SA
(NYSE:GLOB)
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Rating:67Neutral
Price Target:
$42.00
▲(34.19% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by steady underlying financial stability (healthy leverage and cash generation) despite weaker recent operating trends (TTM revenue decline and margin compression). Technicals are a notable drag with a clear downtrend across moving averages, partially tempered by oversold readings. Valuation is supportive with a low P/E, and the latest earnings call adds moderate positives via guidance discipline, AI-led pipeline progress, and continued buybacks.
Positive Factors
Healthy leverage and balance sheet
Globant's low debt-to-equity (~0.23) indicates manageable leverage for a services firm, preserving financial flexibility for investments, M&A or buybacks. This durable capital structure reduces refinancing risk and supports operational stability across cycles over the next 2–6 months.
Negative Factors
Revenue contraction and margin compression
Significant TTM revenue decline (~16.3%) and compressed net margins reflect weaker pricing, utilization or volume. These trends point to operational strain that could persist absent durable demand recovery or margin-restoring actions, pressuring returns and reinvestment capacity over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy leverage and balance sheet
Globant's low debt-to-equity (~0.23) indicates manageable leverage for a services firm, preserving financial flexibility for investments, M&A or buybacks. This durable capital structure reduces refinancing risk and supports operational stability across cycles over the next 2–6 months.
Read all positive factors
Globant SA (GLOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.67B
Dividend YieldN/A
Average Volume (3M)2.11M
Price to Earnings (P/E)16.5
Beta (1Y)1.27
Revenue Growth-0.20%
EPS Growth-28.17%
CountryUS
Employees28,510
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.49
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
$43.54Price Target Upside39.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
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
63
Positive
Balance Sheet
78
Positive
Cash Flow
74
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 | 800.13M | 859.29M | 863.37M | 755.76M | 669.39M | 494.99M |
| EBITDA | 340.54M | 299.46M | 417.01M | 357.95M | 314.85M | 215.62M |
| Net Income | 109.26M | 102.92M | 165.73M | 158.54M | 148.89M | 96.06M |
Balance Sheet | ||||||
| Total Assets | 3.27B | 3.32B | 3.17B | 2.73B | 2.20B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 200.54M | 250.34M | 158.24M | 327.26M | 343.73M | 461.68M |
| Total Debt | 462.67M | 473.64M | 410.16M | 277.84M | 138.84M | 146.72M |
| Total Liabilities | 1.07B | 1.16B | 1.13B | 931.18M | 639.63M | 576.22M |
| Stockholders Equity | 2.12B | 2.09B | 1.96B | 1.73B | 1.51B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 303.00M | 261.22M | 220.99M | 191.72M | 102.09M | 101.34M |
| Operating Cash Flow | 319.19M | 280.45M | 248.73M | 318.52M | 197.52M | 178.97M |
| Investing Cash Flow | -166.13M | -161.60M | -403.90M | -350.36M | -269.30M | -272.88M |
| Financing Cash Flow | -71.63M | -16.75M | -5.81M | 44.53M | -65.68M | 243.99M |
Globant SA Technical Analysis
Positive
31.30
Price Trends
34.13
Positive
38.50
Positive
49.35
Negative
Market Momentum
1.74
Negative
69.11
Neutral
85.21
Negative
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 31.3 is below the 20-day moving average (MA) of 35.68, below the 50-day MA of 34.13, and below the 200-day MA of 49.35, indicating a neutral trend. The MACD of 1.74 indicates Negative momentum. The RSI at 69.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.67B | 16.49 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $1.71B | 14.74 | 4.06% | ― | -2.42% | -65.01% | |
54 Neutral | $1.19B | -3.77 | -7.00% | ― | -3.50% | 16.13% | |
54 Neutral | $1.50B | -1.17 | -41.80% | 6.47% | 3.89% | -681.89% |
* Technology Sector Average
GLOB
Globant SA
40.99
-37.13
-47.53%
DXC
DXC Technology
11.20
-2.58
-18.72%
CLVT
Clarivate
1.96
-2.35
-54.52%
CNXC
Concentrix
24.87
-21.73
-46.64%
Globant SA Corporate Events
Globant Unveils Q1 2026 Results, New $125 Million Buyback and Details U.S. Securities Suit
May 14, 2026
On May 14, 2026, Globant reported first-quarter 2026 revenue of $607.1 million, slightly down 0.7% year over year but above guidance, with IFRS diluted EPS rising to $0.85 and flat non-IFRS adjusted diluted EPS of $1.50. The company highlighted re...
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.