Globant SA (GLOB) AI Stock Analysis

• Market Cap: $2.49B
• Dividend Yield: N/A
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.41
• Revenue Growth: 8.66%
• EPS Growth: -35.78%
• Country: US
• Employees: 31,280
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.53
• Shares Outstanding: 44,045,560
• 10 Day Avg. Volume: 1,402,537
• 30 Day Avg. Volume: 1,531,189
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 4.98
• Enterprise Value/Ebitda: 17.93
• 1Y Price Target: $87.82
• Price Target Upside: 52.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $77.00 ▲(33.29% Upside)

Globant SA's overall stock score reflects a strong earnings call performance and solid financial health, offset by bearish technical indicators and a high valuation. The company's strategic initiatives in AI and partnerships are promising, but current market conditions and valuation concerns weigh on the stock's attractiveness.

Positive Factors

Strategic Partnerships

These partnerships enhance Globant's AI capabilities and market reach, positioning the company as a leader in AI-driven solutions, which is crucial for long-term growth in the tech industry.

Record Pipeline

A strong pipeline indicates robust future revenue potential and demand for Globant's services, supporting sustained growth and market expansion over the coming months.

AI Pods Adoption

The rapid adoption of AI Pods reflects Globant's innovation and ability to meet client needs in AI, driving competitive advantage and long-term revenue growth.

Negative Factors

Workforce Reduction

While intended for strategic alignment, workforce reductions can disrupt operations and morale, potentially impacting service delivery and client satisfaction in the medium term.

Free Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, limiting Globant's ability to invest in growth opportunities and manage financial obligations effectively.

North America Revenue Decline

Declining revenue in a key market like North America suggests challenges in client retention or acquisition, which could hinder overall growth if not addressed.

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; digital lending, commercial effectiveness, finance, sustainability, regulation analytic, transformation and post-merger integration, and payment and open banking services; and game and graphic engineering, UI and UX design, game as a service, DevOps, and online services, as well as high tech tools. The company also provides smart farming, image diagnosis, healthcare interoperability, genomics data processing, telemedicine and medical device, research and development, and precision medicine services; media and entertainment, and travel and hospitality services; cloud transformation advice, building cloud environment, moving workloads to the cloud, cloud support and operation, chaos engineering, and site reliability engineering services; and data strategies, insights, data platforms, MLOps, and data as a product services. In addition, it offers agile delivery, blockchain, business and cultural hacking, conversational interface, cybersecurity, design, digital sales and marketing, enterprise applications, internet of thing, metaverse, process optimization, quality engineering, salesforce, smart venue, UI engineering, and sustainable business solutions. Further, the company provides smart underwriting, monitoring, and digital collection services; digital experience platforms; product strategy, management, and delivery services; and strategic architecture consulting, platforms evolution, and augmented composable solutions. Additionally, it operates augmented coding and testing, StarMeUp, PagoChat, ShopChat, and Walmeric platforms. The company was formerly known as IT Outsourcing S.L. and changed its name to Globant S.A. in December 2012. Globant S.A. was founded in 2003 and is based in Luxembourg.

How the Company Makes Money

Globant generates revenue primarily through its consulting and professional services. The company employs a model that combines project-based work with long-term service contracts, enabling it to deliver tailored technology solutions to its clients. Key revenue streams include custom software development, system integration, and IT outsourcing services. Additionally, Globant has established partnerships with major technology companies, such as Google, IBM, and Salesforce, which not only enhance its service offerings but also contribute to its earnings through collaborative projects and joint initiatives. The company's focus on emerging technologies and digital transformation services positions it well in a growing market, helping to drive consistent revenue growth.

Globant SA Financial Statement Overview

Summary

Globant SA shows strong growth and a solid financial position, supported by robust revenue increases and a healthy balance sheet. While profitability margins have faced some pressure, the company's low leverage and strong equity base provide stability. Cash flow generation is positive, though there is room for improvement in converting earnings to free cash flow.

Income Statement

Globant SA demonstrates strong revenue growth with a TTM increase of 8.8%, indicating robust demand for its services. The gross profit margin remains stable at around 36%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 6.2% in the TTM, suggesting some pressure on profitability. EBIT and EBITDA margins have also seen a decline, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.20, indicating conservative leverage. The return on equity is moderate at 7.98%, showing decent profitability relative to shareholder equity. The equity ratio stands at 62.4%, reflecting a strong capital structure with significant equity financing.

Cash Flow

Globant SA's cash flow performance is solid, with a free cash flow growth rate of 11.4% in the TTM, highlighting effective cash generation. The operating cash flow to net income ratio is 0.45, suggesting good cash conversion from earnings. However, the free cash flow to net income ratio of 0.87 indicates that a significant portion of earnings is not translating into free cash flow, which could be a concern for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.42B	2.10B	1.78B	1.30B	814.14M
Gross Profit	895.03M	863.37M	755.76M	669.39M	494.99M	304.33M
EBITDA	248.56M	405.14M	361.54M	317.25M	218.08M	135.43M
Net Income	112.20M	165.73M	158.54M	148.89M	96.06M	54.22M
Balance Sheet
Total Assets	3.40B	3.17B	2.74B	2.19B	1.89B	1.29B
Cash, Cash Equivalents and Short-Term Investments	184.13M	158.24M	324.76M	347.39M	462.44M	299.80M
Total Debt	536.65M	410.16M	277.84M	138.84M	146.72M	113.57M
Total Liabilities	1.21B	1.13B	948.74M	636.34M	581.92M	408.83M
Stockholders Equity	2.12B	1.96B	1.73B	1.51B	1.31B	879.94M
Cash Flow
Free Cash Flow	245.25M	220.99M	191.72M	102.09M	101.34M	46.41M
Operating Cash Flow	265.43M	248.73M	318.52M	197.52M	178.97M	99.87M
Investing Cash Flow	-421.58M	-403.90M	-350.36M	-269.30M	-272.88M	-124.02M
Financing Cash Flow	211.80M	-5.81M	44.53M	-65.68M	243.99M	241.55M

Globant SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 57.77 is below the 20-day moving average (MA) of 58.32, below the 50-day MA of 62.51, and below the 200-day MA of 115.36, indicating a bearish trend. The MACD of -1.27 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLOB.

Globant SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	77 Outperform	$3.28B	20.40	21.23%	―	1.94%	26.15%
ASGN	71 Outperform	$2.00B	14.63	7.71%	―	-6.31%	-23.56%
GLOB	69 Neutral	$2.49B	22.43	5.66%	―	8.66%	-35.78%
CNXC	67 Neutral	$2.79B	9.48	7.08%	2.97%	3.40%	53.13%
DXC	65 Neutral	$2.29B	6.26	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLVT	56 Neutral	$2.39B	―	-8.18%	―	-3.92%	67.52%

Globant SA Corporate Events

Globant Announces $125 Million Share Repurchase Program

On September 30, 2025, Globant S.A.’s board of directors approved a new share repurchase program, allowing up to $50 million per quarter, with a total cap of $125 million, for repurchasing common shares from Q4 2025 to Q4 2026. This initiative, announced on October 1, 2025, is part of Globant’s strategy to enhance shareholder value and is supported by its free cash flow generation. The program reflects Globant’s confidence in its long-term strategy and commitment to investing in strategic growth initiatives, while allowing flexibility in repurchase methods and timing based on market conditions.

Globant’s Q2 2025 Results Highlight Strategic AI Shift

On August 14, 2025, Globant announced its second-quarter financial results for 2025, highlighting strategic investments and a shift towards a new business model centered around AI. The company reported revenues of $614.2 million, a 4.5% year-over-year increase, and an adjusted operating margin of 15.0%. Despite a one-time charge of $47.6 million for a Business Optimization Plan, Globant’s pipeline reached a record $3.7 billion, indicating strong demand for its AI-driven solutions. This positions Globant as a full-stack AI company, aiming to redefine the professional services industry with its subscription model and AI Pods.

Globant Announces COO Resignation and Leadership Restructuring

On July 28, 2025, Globant S.A. announced that Patricia Pomies will resign as Chief Operating Officer, effective July 31, 2025. The company will not appoint a new COO, opting instead to redistribute her responsibilities among the existing leadership team to maintain seamless operations and capitalize on their strengths.