Globant SA (GLOB)
NYSE:GLOB
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Globant SA
(NYSE:GLOB)
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Rating:65Neutral
Price Target:
$42.00
▼(-15.95% Downside)
Action:Reiterated
Date:05/16/26
The score is supported primarily by solid financial stability (healthy balance sheet and strong free cash flow) and a generally positive earnings call (beat, narrowed guidance, AI pipeline, and buyback). It is held back by weak technicals (below key moving averages with negative MACD) and a still-soft operating backdrop (TTM revenue contraction and margin compression).
Positive Factors
Balance Sheet Health
Low leverage (debt-to-equity ~0.23) provides durable financial flexibility for a services firm. This supports continued investment in delivery capacity, inorganic opportunities or cyclical cushioning, and underpins sustained capital returns or strategic pivots without stressing liquidity.
Negative Factors
Revenue Contraction
Material TTM revenue decline (~16%) indicates a weakened top-line trend that pressures scale economics for a services company. Sustained revenue softness can erode pricing power, utilization, and the ability to invest in new practices, making recovery dependent on successful pipeline conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Low leverage (debt-to-equity ~0.23) provides durable financial flexibility for a services firm. This supports continued investment in delivery capacity, inorganic opportunities or cyclical cushioning, and underpins sustained capital returns or strategic pivots without stressing liquidity.
Read all positive factors
Globant SA (GLOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.73B
Dividend YieldN/A
Average Volume (3M)1.81M
Price to Earnings (P/E)13.4
Beta (1Y)1.28
Revenue Growth-0.20%
EPS Growth-28.17%
CountryUS
Employees31,280
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.49
Shares Outstanding43,179,558
10 Day Avg. Volume2,639,108
30 Day Avg. Volume1,806,886
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.40
Price to Sales (P/S)1.20
P/FCF Ratio11.25
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.82
Enterprise Value/Gross Profit2.50
Enterprise Value/Ebitda5.95
Forecast
1Y Price Target
$55.85Price Target Upside11.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)6.24
Revenue Forecast (FY)$2.48B
Globant SA Business Overview & Revenue Model
Company Description
Globant S.A. operates as a technology services company worldwide. It offers e-commerce, new distribution capabilities, augmented revenue management, hyper connected operation, and conversational user experience services through reinvention studios...
How the Company Makes Money
Globant primarily makes money by providing professional technology services to business customers under commercial contracts for digital transformation and software delivery. Revenue is generated mainly from (1) time-and-materials and agile delive...
Globant SA Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution with a number of concrete positive indicators: revenue beat, positive free cash flow (first Q1 FCF since 2019), growing high-quality AI Pods pipeline ($352M) and expanding traction with top clients and partnerships. Profitability remained solid with adjusted operating margin of 14.1% and gross margin of 37%, and capital allocation was shareholder-friendly via a new $125M buyback. Key risks include a slight YoY revenue decline in Q1 (-0.7%), FX and Latin America currency pressures on margins, limited current revenue contribution from AI Pods (early-stage), and geopolitical/airline-related macro uncertainty—factors that explain management’s conservative posture on guidance despite the beat. Overall, positive momentum in AI-native services and a healthy pipeline outweigh the near-term macro and FX headwinds.Positive Updates
Revenue Beat and Guidance Narrowing
Q1 2026 revenue of $607.1 million came in above the high end of guidance. Management reaffirmed the midpoint of the full-year revenue outlook while raising the lower end of the range and narrowing guidance, and expects Q2 to return to sequential growth (Q2 guidance $610M–$616M). Full-year revenue guidance: $2.462B–$2.508B, implying 0.3%–2.2% YoY growth.
Negative Updates
Slight Year-over-Year Revenue Decline in Q1
Reported Q1 revenue reflected a 0.7% decrease YoY despite beating guidance, indicating the company is still near the trough of the cycle and dependent on sequential improvement through the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Guidance Narrowing
Q1 2026 revenue of $607.1 million came in above the high end of guidance. Management reaffirmed the midpoint of the full-year revenue outlook while raising the lower end of the range and narrowing guidance, and expects Q2 to return to sequential growth (Q2 guidance $610M–$616M). Full-year revenue guidance: $2.462B–$2.508B, implying 0.3%–2.2% YoY growth.
Read all positive updates
Company Guidance
Globant reaffirmed the midpoint of its 2026 revenue outlook after Q1 revenue of $607.1 million (above the high end of guidance) while raising the lower end and narrowing the full‑year range; Q2 revenue is guided to $610–$616 million (midpoint implies a ~100 bps FX tailwind), with a non‑IFRS adjusted operating margin of 14–15%, an IFRS effective tax rate of 22–24% and non‑IFRS adjusted diluted EPS of $1.45–$1.55 assuming ~43.6 million diluted shares. For the full year the company expects revenues of $2.462–$2.508 billion (implying 0.3%–2.2% YoY growth at the midpoint and ~100 bps FX tailwind), an adjusted operating margin of 14–15%, an IFRS tax rate of 21–23% and adjusted diluted EPS of $6.10–$6.50 (assumes ~44.1 million diluted shares). Management highlighted improving sequential trends, a healthy pipeline, and continued capital returns: Q1 free cash flow was $36.1 million (FCF/adjusted net income >55%), Q1 adjusted net income was $65.2 million (10.7% margin) and adjusted diluted EPS was $1.50, the balance sheet ended the quarter with $200.5 million cash ($161.2 million net debt), the prior buyback was largely executed (Q1 repurchases ~$50M) and the Board authorized a new repurchase program of up to $125 million over six quarters.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 | 335.92M | 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
Negative
49.97
Price Trends
43.34
Negative
50.90
Negative
57.11
Negative
Market Momentum
-1.31
Negative
47.40
Neutral
89.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLOB, the sentiment is Negative. The current price of 49.97 is above the 20-day moving average (MA) of 39.42, above the 50-day MA of 43.34, and below the 200-day MA of 57.11, indicating a neutral trend. The MACD of -1.31 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 89.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.73B | 13.43 | 5.14% | ― | -0.20% | -28.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $1.57B | -10.08 | -2.81% | ― | -3.25% | 78.91% | |
52 Neutral | $1.61B | 23.28 | -37.51% | 3.38% | 3.81% | -636.38% | |
48 Neutral | $1.55B | -3.90 | 0.58% | ― | -1.76% | -96.67% |
* Technology Sector Average
GLOB
Globant SA
40.13
-60.49
-60.12%
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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...
Globant Shareholders Approve All Proposals at 2026 Annual Meeting
Apr 28, 2026
On April 28, 2026, Globant S.A. held its Annual General Meeting of Shareholders, at which investors approved and adopted all matters presented for vote. The resolutions, previously outlined in a March 27, 2026 filing, underscore broad shareholder ...
Globant Posts Record 2025 Cash Flow as It Accelerates Shift to AI-Driven Service Model
Feb 26, 2026
On February 26, 2026, Globant reported its financial results for the fourth quarter and full year ended December 31, 2025, highlighting record annual revenue of $2.45 billion, modest 1.6% year-on-year growth, and its strongest free cash flow to da...
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.