Globant SA (GLOB)
NYSE:GLOB
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Globant SA
(NYSE:GLOB)
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Rating:61Neutral
Price Target:
$47.00
▲(1.95% Upside)
Action:ReiteratedDate:02/28/26
The score is anchored by softened TTM fundamentals (slower growth and margin compression) and weak technicals (below major moving averages with negative MACD). These are partially offset by a solid balance sheet and constructive earnings-call signals (strong bookings/pipeline, record free cash flow, and disciplined margin guidance), while valuation at ~22x earnings is only moderately supportive given the current growth outlook.
Positive Factors
Balance Sheet Strength
Globant’s conservative leverage (debt-to-equity ~0.23) and steady equity growth provide durable financial flexibility. This balance-sheet strength supports continued investment in AI initiatives, buffers macro or currency shocks, and enables share repurchases or opportunistic M&A without stressing liquidity over the next several quarters.
Negative Factors
Revenue Slowdown & Margin Compression
Recent TTM weakening in top-line and compressed margins reflect softer demand and cost pressures; lower net margins and reduced ROE constrain reinvestment capacity and make it harder to sustainably fund growth initiatives. If these trends persist, they could limit hiring, pricing power, and margin recovery over the medium term.
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Positive Factors
Negative Factors
Balance Sheet Strength
Globant’s conservative leverage (debt-to-equity ~0.23) and steady equity growth provide durable financial flexibility. This balance-sheet strength supports continued investment in AI initiatives, buffers macro or currency shocks, and enables share repurchases or opportunistic M&A without stressing liquidity over the next several quarters.
Read all positive factors
Globant SA (GLOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.99B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)17.6
Beta (1Y)1.27
Revenue Growth5.56%
EPS Growth-42.38%
CountryUS
Employees31,280
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.54
Shares Outstanding43,179,558
10 Day Avg. Volume936,647
30 Day Avg. Volume1,411,210
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 Cap1.13
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda6.78
Forecast
1Y Price Target
$63.36Price Target Upside37.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial discipline (record free cash flow, above-guidance Q4 revenue, robust bookings and a $3.4B pipeline) and highlighted early but meaningful commercial traction for its AI Pods initiative (high gross margins, growing pipeline and client case studies). At the same time, management acknowledged near-term headwinds: a 4.7% Q4 revenue decline, currency and statutory cost pressures on margins, slower conversion of very large deals, and that AI Pods are still a small portion of total revenue. Given the balance of material positive operational and liquidity metrics, accelerating bookings and clear execution plans for AI-native offerings versus manageable but notable headwinds, the net tone is constructive with expectations to return to growth by mid-2026.Positive Updates
Record Free Cash Flow and Strong Cash Position
Generated a record $152.8M of free cash flow in Q4 (highest quarterly FCF in company history) and a record $211.7M for full-year 2025. Ended the year with $250.3M in cash and short-term investments and a modest total net debt position of $116.4M.
Negative Updates
Top-Line Pressure in 2025 and Q4 Decline
Full-year growth was modest and the company experienced a Q4 revenue decline of 4.7% year-over-year (Q4 revenue $612.5M). Management characterized 2025 as a transition year with macro and customer budget uncertainty impacting growth; 2026 guidance is modest (0.2%–2.2% YoY).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Free Cash Flow and Strong Cash Position
Generated a record $152.8M of free cash flow in Q4 (highest quarterly FCF in company history) and a record $211.7M for full-year 2025. Ended the year with $250.3M in cash and short-term investments and a modest total net debt position of $116.4M.
Read all positive updates
Company Guidance
Globant guided FY‑2026 revenue of $2.460–$2.510 billion (implying 0.2%–2.2% YoY growth and roughly a 100 bps FX tailwind), adjusted operating margin of 14%–15%, an IFRS effective tax rate of 21%–23% and adjusted diluted EPS of $6.10–$6.50 (assumes ~44.2 million diluted shares). For Q1 2026 management expects revenue of $598–$604 million, adjusted operating margin 14%–15%, an IFRS tax rate of 22%–24% and adjusted diluted EPS of $1.44–$1.54 (assumes ~43.7 million diluted shares). They are targeting AI Pods exit ARR of $60–$100 million in 2026 (up from a $20.6 million exit ARR in 2025); AI Pods pipeline was $283 million in Q4 (up 34% vs Q3) and represented 8% of a $3.4 billion total pipeline. Management also highlighted record Q4 bookings (+32.4% YoY, with 100 “squared” accounts driving 73% of bookings), strong cash generation (Q4 FCF $152.8M; FY‑2025 FCF $211.7M), $250.3M cash & short‑term investments and a modest net debt of $116.4M, and said they will continue the share repurchase program (Q4 buyback $50M).Globant SA Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.45B | 2.42B | 2.10B | 1.78B | 1.30B |
| Gross Profit | 859.29M | 863.37M | 755.76M | 669.39M | 494.99M |
| EBITDA | 299.46M | 417.01M | 357.95M | 314.85M | 215.62M |
| Net Income | 102.92M | 165.73M | 158.54M | 148.89M | 96.06M |
Balance Sheet | |||||
| Total Assets | 3.32B | 3.17B | 2.73B | 2.20B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 250.34M | 158.24M | 327.26M | 343.73M | 461.68M |
| Total Debt | 473.64M | 410.16M | 277.84M | 138.84M | 146.72M |
| Total Liabilities | 1.16B | 1.13B | 931.18M | 639.63M | 576.22M |
| Stockholders Equity | 2.09B | 1.96B | 1.73B | 1.51B | 1.31B |
Cash Flow | |||||
| Free Cash Flow | 261.22M | 220.99M | 191.72M | 102.09M | 101.34M |
| Operating Cash Flow | 280.45M | 248.73M | 318.52M | 197.52M | 178.97M |
| Investing Cash Flow | -161.60M | -403.90M | -350.36M | -269.30M | -272.88M |
| Financing Cash Flow | -16.75M | -5.81M | 44.53M | -65.68M | 243.99M |
Globant SA Technical Analysis
Negative
46.10
Price Trends
50.96
Negative
58.54
Negative
64.61
Negative
Market Momentum
-1.13
Negative
45.79
Neutral
78.05
Neutral
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 46.1 is above the 20-day moving average (MA) of 45.49, below the 50-day MA of 50.96, and below the 200-day MA of 64.61, indicating a neutral trend. The MACD of -1.13 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 78.05 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.99B | 17.57 | 4.88% | ― | 5.56% | -42.38% | |
61 Neutral | $1.59B | 18.42 | 6.26% | ― | -4.86% | -25.15% | |
59 Neutral | $2.16B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
54 Neutral | $1.56B | 176.21 | -4.07% | ― | -2.96% | 71.30% | |
52 Neutral | $1.69B | 23.28 | -37.51% | 3.38% | 3.40% | 53.13% |
* Technology Sector Average
GLOB
Globant SA
45.81
-66.80
-59.32%
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Globant SA Corporate Events
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.