Globant (NYSE:GLOB) Issues Quarterly Earnings Results

Globant (NYSE:GLOB) posted its quarterly earnings results on Thursday. The information technology services provider reported $1.40 earnings per share for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.10), FiscalAI reports. The firm had revenue of $614.42 million during the quarter, compared to the consensus estimate of $612.86 million. Globant had a return on equity of 9.25% and a net margin of 4.63%.The business’s revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.53 earnings per share. Globant updated its FY 2026 guidance to 5.750-6.150 EPS and its Q3 2026 guidance to 1.430-1.430 EPS.

Here are the key takeaways from Globant’s conference call:

• Glob.AI ARR reached $52.8 million in Q2, up roughly 60% sequentially, with management targeting at least $110 million by year-end. AI Pods have been adopted by 45 clients, carry gross margins about 10 percentage points above traditional delivery, and are expected to represent roughly 4% of revenue by year-end.
• Globant reported stronger growth among its largest customers, with top-50 and top-20 accounts up 6.9% and 6.6% year over year, respectively. Revenue per employee increased 9.7% to approximately $95,800 on a run-rate basis, reflecting productivity gains and lower headcount.
• Management reduced full-year 2026 revenue guidance to $2.428 billion-$2.462 billion from $2.462 billion-$2.508 billion previously, citing weakness in new markets, travel-sector pressure from oil prices, and prolonged North American decision cycles. Full-year adjusted operating margin guidance was also lowered to 13.5%-14.5%.
• Q2 adjusted operating margin fell to 13.2%, below guidance, due to unfavorable foreign exchange—particularly the stronger Colombian peso—and below-target utilization. Globant recorded a $32.3 million one-time charge for workforce, office, and delivery-center optimization, with an additional $20 million-$25 million of costs expected in Q3.
• The company ended Q2 with $168.8 million in cash and short-term investments, generated record first-half free cash flow of $48.7 million, and has an active share-repurchase authorization of up to $125 million. Management expects optimization savings and the growing AI Pod mix to support margin improvement entering 2027.

Globant Price Performance

NYSE GLOB traded down $3.64 on Friday, reaching $37.35. The company had a trading volume of 6,224,861 shares, compared to its average volume of 1,734,424. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $1.64 billion, a PE ratio of 14.65, a price-to-earnings-growth ratio of 1.55 and a beta of 1.02. The firm’s 50 day moving average price is $33.79 and its 200 day moving average price is $42.34. Globant has a 12 month low of $27.56 and a 12 month high of $72.10.

Globant News Summary

Here are the key news stories impacting Globant this week:

• Positive Sentiment: Globant reported second-quarter revenue of approximately $614.4 million, slightly above analysts’ expectations. The company also highlighted strong momentum in its Glob.AI business, with annual recurring revenue reaching $52.8 million, up 61% sequentially, and management expects Glob.AI ARR to exceed $110 million by year-end. Globant Reports 2026 Second Quarter Financial Results
• Positive Sentiment: Operating cash flow increased to $30.2 million, while total liabilities declined, indicating continued cash generation and a relatively solid balance sheet. TD Cowen and Guggenheim maintained “buy” ratings, with revised targets of $45 and $50, respectively. Analyst rating updates
• Neutral Sentiment: Despite the near-term pressure, several analysts’ revised targets remain above the stock’s recent trading level. JPMorgan and Goldman Sachs maintained neutral ratings with targets of $44 and $52, while Truist assigned a hold rating and a $38 target, signaling limited near-term upside in its view. What’s going on with Globant stock on Friday?
• Negative Sentiment: Second-quarter adjusted EPS was $1.40, below the $1.50 consensus estimate and down from $1.53 a year earlier. Revenue was essentially flat year over year, while gross profit declined 4.3%, reinforcing concerns about margin pressure and weak growth. Globant Q2 Earnings Lag Estimates
• Negative Sentiment: Third-quarter revenue guidance of $607 million to $615 million and EPS guidance of $1.43 were below consensus estimates of $626.2 million and $1.52. Full-year revenue guidance also trailed expectations, prompting investors to reassess Globant’s growth outlook. Globant: The Transition To AI As A Service Will Take Time
• Negative Sentiment: Goldman Sachs, Guggenheim, TD Cowen, JPMorgan and Truist all lowered their price targets, reflecting reduced confidence in the pace of recovery. The market is also concerned that converting Globant’s AI investments into significant revenue will take time. Stocks to Watch Heading Into Friday

Wall Street Analyst Weigh In

A number of research firms recently weighed in on GLOB. Truist Financial lowered their target price on shares of Globant from $44.00 to $38.00 and set a “hold” rating on the stock in a research note on Friday. Guggenheim decreased their price target on Globant from $55.00 to $50.00 and set a “buy” rating on the stock in a report on Friday. Needham & Company LLC lowered their price objective on Globant from $50.00 to $45.00 and set a “buy” rating on the stock in a research report on Friday. Canaccord Genuity Group set a $35.00 price objective on Globant in a research report on Friday. Finally, The Goldman Sachs Group dropped their price objective on Globant from $60.00 to $52.00 and set a “neutral” rating for the company in a research note on Friday. Five analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Globant currently has an average rating of “Hold” and an average target price of $46.38.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Alliancebernstein L.P. increased its holdings in shares of Globant by 6,875.8% in the second quarter. Alliancebernstein L.P. now owns 929,245 shares of the information technology services provider’s stock worth $84,413,000 after purchasing an additional 915,924 shares during the last quarter. BNP Paribas Financial Markets grew its holdings in Globant by 601.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 783,930 shares of the information technology services provider’s stock valued at $44,982,000 after buying an additional 672,175 shares in the last quarter. Two Sigma Investments LP increased its stake in Globant by 493.8% in the 3rd quarter. Two Sigma Investments LP now owns 660,296 shares of the information technology services provider’s stock worth $37,888,000 after acquiring an additional 549,089 shares during the last quarter. Federated Hermes Inc. grew its holdings in shares of Globant by 7,560.4% in the fourth quarter. Federated Hermes Inc. now owns 468,053 shares of the information technology services provider’s stock valued at $30,597,000 after purchasing an additional 461,943 shares in the last quarter. Finally, Nuveen LLC lifted its position in Globant by 80.2% during the fourth quarter. Nuveen LLC now owns 1,027,136 shares of the information technology services provider’s stock valued at $67,144,000 after purchasing an additional 456,999 shares during the last quarter. Institutional investors own 91.60% of the company’s stock.

Globant declared that its board has authorized a stock buyback plan on Monday, May 18th that authorizes the company to buyback $50.00 million in shares. This buyback authorization authorizes the information technology services provider to purchase up to 2.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.

About Globant

Globant is a digitally native technology services company founded in 2003 in Buenos Aires, Argentina. Specializing in software development and digital transformation, Globant partners with enterprises to conceive, design and engineer software products and platforms. The company leverages agile methodologies and proprietary delivery frameworks to accelerate projects in areas such as cloud migration, user experience design, data analytics, artificial intelligence and blockchain-enabled solutions.

Globant’s service offerings span strategy consulting, custom software engineering, digital experience design and managed services.