Globant SA (GLOB) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: N/A
• Average Volume (3M): 1.00M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.21
• Revenue Growth: 5.56%
• EPS Growth: -42.38%
• 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: 1,441,247
• 30 Day Avg. Volume: 1,001,765
• PEG Ratio: 21.44
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 43.23
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.20
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $77.27
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $73.00 ▲(20.86% Upside)

Globant's overall stock score reflects solid financial performance and strategic advancements in AI, offset by challenges in maintaining profit margins and cash flow growth. The technical analysis suggests a cautious outlook, while valuation metrics indicate moderate pricing. The earnings call provided mixed signals, with strong pipeline growth but limited revenue growth due to macroeconomic factors.

Positive Factors

Large sales pipeline

A $3.7bn pipeline with 30% YoY growth gives durable revenue visibility and a backlog that can convert over multiple quarters. This supports sustained demand for services, underpins long-term client relationships, and reduces reliance on one-off deals for near-term growth.

AI subscription shift

Doubling AI Pods' share signals structural shift toward subscription, recurring revenue and higher client stickiness. Over months this model can lift predictability, improve lifetime value, and create scalable delivery patterns that benefit margins and cross-sell opportunities.

Low leverage / strong capital structure

A low D/E of 0.22 and high equity ratio provide financial flexibility to fund strategic AI investments, pursue partnerships, and absorb shocks. This durable strength supports capital allocation choices like buybacks or targeted M&A without overleveraging the business.

Negative Factors

Free cash flow decline

A 91.7% TTM free cash flow decline signals impaired cash conversion despite revenue, constraining reinvestment and shareholder returns. Persistent FCF weakness can force trade-offs between capex for AI, hiring, and buybacks, reducing strategic flexibility over coming quarters.

Margin compression

Declining gross and net margins indicate pressure from pricing, mix shifts, and FX. Lower margins reduce return on equity and cash generation, limiting the company's ability to fund growth or absorb economic shocks, which can weigh on sustainable profitability over months.

Stagnant near-term revenue

Near-flat revenue and a Q4 decline in guidance point to limited organic growth amid macro and FX headwinds. If the company cannot convert pipeline into consistent topline expansion, growth will depend heavily on large, lumpy deals and successful AI commercialization over the next 2–6 months.

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 service offerings, which include software development, IT consulting, and digital transformation projects. The company's revenue model is based on a combination of fixed-price contracts and time-and-material agreements with clients. Key revenue streams come from long-term contracts with large enterprises across various industries, where Globant provides tailored technology solutions. Additionally, the company benefits from partnerships with major technology providers, enhancing its service capabilities and reach. Factors contributing to its earnings include a growing demand for digital transformation services, a diversified client portfolio, and the ability to leverage emerging technologies to deliver value-added solutions.

Globant SA Financial Statement Overview

Summary

Globant SA demonstrates solid revenue growth and operational efficiency, but faces challenges in maintaining profit margins and cash flow growth. The balance sheet remains strong with low leverage, providing a stable financial foundation. The company should focus on enhancing profitability and cash flow generation to sustain its growth trajectory.

Income Statement

Globant SA has shown consistent revenue growth, with a 10% increase in the TTM period. However, the gross profit margin has slightly decreased to 34.55% from 35.74% in the previous year. The net profit margin also declined to 4.01% from 6.86%, indicating pressure on profitability. Despite these challenges, the company maintains a solid EBIT margin of 7.39% and an EBITDA margin of 13.04%, reflecting operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.22, indicating prudent financial management. The return on equity is 4.80%, which is lower than the previous year, suggesting a need for improved profitability. The equity ratio stands at 64.97%, showcasing a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

Globant SA's cash flow performance shows a decline in free cash flow growth, with a significant drop of 91.7% in the TTM period. The operating cash flow to net income ratio is 0.54, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.91, suggesting effective conversion of earnings into cash.

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	858.65M	863.37M	755.76M	669.39M	494.99M	304.33M
EBITDA	323.95M	417.01M	357.95M	314.85M	215.62M	133.88M
Net Income	99.76M	165.73M	158.54M	148.89M	96.06M	54.22M
Balance Sheet
Total Assets	3.35B	3.17B	2.73B	2.20B	1.88B	1.29B
Cash, Cash Equivalents and Short-Term Investments	166.95M	158.24M	327.26M	343.73M	461.68M	299.08M
Total Debt	474.12M	410.16M	277.84M	138.84M	146.72M	113.57M
Total Liabilities	1.10B	1.13B	931.18M	639.63M	576.22M	408.83M
Stockholders Equity	2.17B	1.96B	1.73B	1.51B	1.31B	879.94M
Cash Flow
Free Cash Flow	230.80M	220.99M	191.72M	102.09M	101.34M	46.41M
Operating Cash Flow	254.79M	248.73M	318.52M	197.52M	178.97M	99.87M
Investing Cash Flow	-385.01M	-403.90M	-350.36M	-269.30M	-272.88M	-124.02M
Financing Cash Flow	97.47M	-5.81M	44.53M	-65.68M	243.99M	241.55M

Globant SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 60.4 is below the 20-day moving average (MA) of 66.87, below the 50-day MA of 66.85, and below the 200-day MA of 77.49, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 38.55 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 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
GLOB	67 Neutral	$2.66B	26.71	4.91%	―	5.56%	-42.38%
ASGN	67 Neutral	$2.28B	17.97	7.25%	―	-4.86%	-25.15%
DXC	62 Neutral	$2.42B	6.13	13.79%	―	-4.13%	2143.48%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLVT	50 Neutral	$1.44B	-3.80	-7.60%	―	-2.96%	71.30%
CNXC	50 Neutral	$2.38B	-1.87	-37.82%	3.38%	3.40%	53.13%

Globant SA Corporate Events

Globant Reports Strong Q3 2025 Financial Results and Announces Share Repurchase Plan

On November 13, 2025, Globant S.A. reported its financial results for the third quarter of 2025, highlighting a revenue increase to $617.1 million, which exceeded guidance. Despite facing currency headwinds, the company expanded its profitability, generating $67.5 million in free cash flow and announcing a share repurchase plan. The results reflect Globant’s commitment to its growth strategy centered on AI transformation projects for key clients, reinforcing its position as a leader in AI implementation. The company also provided estimates for the fourth quarter and full year of 2025, anticipating continued revenue growth and maintaining a strong operational margin.

The most recent analyst rating on (GLOB) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Globant SA stock, see the GLOB Stock Forecast page.

Globant S.A. Re-Appoints Linda Rottenberg as Lead Independent Director

On November 12, 2025, Globant S.A.’s board of directors re-appointed Ms. Linda Rottenberg as the Lead Independent Director. Ms. Rottenberg, who has been an independent board member since 2017 and the Lead Independent Director since 2023, will continue in her role until a successor is appointed or other conditions are met. This re-appointment underscores the company’s commitment to maintaining strong governance practices, which may reassure stakeholders about the stability and continuity of its leadership.

The most recent analyst rating on (GLOB) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Globant SA stock, see the GLOB Stock Forecast page.