Globant (NYSE:GLOB) Posts Quarterly Earnings Results

Globant (NYSE:GLOB) announced its earnings results on Thursday. The information technology services provider reported $1.40 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.10), FiscalAI reports. The firm had revenue of $614.42 million during the quarter, compared to analyst estimates of $612.86 million. Globant had a return on equity of 9.87% and a net margin of 4.46%.The business’s quarterly revenue was up .0% compared to the same quarter last year. During the same quarter in the previous year, the business 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 Stock Up 6.3%

Shares of GLOB stock traded up $2.44 during trading on Thursday, hitting $41.18. 3,981,458 shares of the company were exchanged, compared to its average volume of 1,610,352. The business’s 50-day simple moving average is $33.81 and its 200 day simple moving average is $42.37. Globant has a twelve month low of $27.56 and a twelve month high of $79.65. The firm has a market capitalization of $1.81 billion, a price-to-earnings ratio of 16.74, a P/E/G ratio of 1.46 and a beta of 1.02. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.82 and a current ratio of 1.82.

Globant announced that its board has approved a stock repurchase program 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 repurchase up to 2.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Globant

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Globant during the first quarter worth $447,000. Goldman Sachs Group Inc. grew its stake in Globant by 69.3% in the first quarter. Goldman Sachs Group Inc. now owns 74,237 shares of the information technology services provider’s stock valued at $8,739,000 after purchasing an additional 30,386 shares in the last quarter. First Trust Advisors LP grew its stake in Globant by 61.9% in the second quarter. First Trust Advisors LP now owns 102,280 shares of the information technology services provider’s stock valued at $9,291,000 after purchasing an additional 39,122 shares in the last quarter. Marshall Wace LLP increased its position in Globant by 823.2% in the 2nd quarter. Marshall Wace LLP now owns 105,894 shares of the information technology services provider’s stock worth $9,619,000 after purchasing an additional 94,424 shares during the last quarter. Finally, Amundi increased its position in Globant by 192.7% in the 2nd quarter. Amundi now owns 7,970 shares of the information technology services provider’s stock worth $727,000 after purchasing an additional 5,247 shares during the last quarter. Hedge funds and other institutional investors own 91.60% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on GLOB. Wedbush reaffirmed an “outperform” rating on shares of Globant in a research note on Monday, May 18th. Wells Fargo & Company cut their target price on shares of Globant from $50.00 to $42.00 and set an “equal weight” rating on the stock in a research note on Friday, July 10th. The Goldman Sachs Group reduced their target price on Globant from $68.00 to $60.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Deutsche Bank Aktiengesellschaft set a $33.00 target price on Globant in a research report on Friday, July 10th. Finally, Susquehanna lowered their price target on Globant from $90.00 to $78.00 and set a “positive” rating on the stock in a report on Friday, May 15th. Six equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $52.75.

Key Headlines Impacting Globant

Here are the key news stories impacting Globant this week:

• Positive Sentiment: AI momentum accelerated. Glob.AI annual recurring revenue reached $52.8 million in the second quarter, up 61% sequentially, and management expects it to exceed $110 million exiting 2026. FIFA also selected Globant to build an AI-powered, year-round fan engagement ecosystem, with initial pilots showing a 20% efficiency improvement. Globant Reports 2026 Second Quarter Financial Results FIFA Selects Globant to Create a Continuous Fan Experience Ecosystem
• Positive Sentiment: Cash flow and the balance sheet remained relatively solid. Operating cash flow increased to $30.2 million, cash and equivalents totaled $163.8 million, and total liabilities declined to approximately $1.1 billion. Operating profit also improved substantially year over year, although profitability remained uneven.
• Neutral Sentiment: Institutional positioning was mixed. BlackRock and JPMorgan increased their holdings, while several other large investors—including Royal Bank of Canada, Wasatch Advisors and Arga Investment Management—reduced or exited positions. An insider also purchased 25,000 shares, providing a modest confidence signal but not outweighing the broader concerns.
• Negative Sentiment: Second-quarter results disappointed on earnings. Globant reported approximately $614.4 million in revenue, roughly flat year over year and close to—but slightly above in one estimate—consensus expectations. Adjusted EPS was reported at $1.40, below the $1.50 analyst estimate. Gross profit fell 4.3% to $208.2 million, while net income attributable to common shareholders was only $1.8 million. Globant Reports 2026 Second Quarter Financial Results
• Negative Sentiment: Forward guidance fell short of expectations. Third-quarter revenue guidance of $607 million–$615 million and EPS guidance of $1.43 were below consensus estimates of $626.2 million and $1.52, respectively. Full-year revenue guidance of $2.4 billion–$2.5 billion also implies limited growth and came in below the $2.5 billion consensus midpoint. The outlook reinforces concerns about delayed discretionary IT spending, soft demand and limited visibility into a near-term growth reacceleration.

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.