Globant Q2 EPS Misses, Guides Q3 Revenue Down 1.6% at Midpoint
GLOB sits 23% above its 52-week low of $27.56 on elevated volume (1.8× avg).
Summary
Globant's Q2 revenue of $614.4M slightly beat consensus, but adjusted EPS of $1.40 missed the $1.50 estimate. Guidance is weak: Q3 revenue is expected to decline 1.6% to 0.3% year-over-year, and full-year 2026 revenue is guided to a range implying -1.1% to +0.3% growth. Gross margin fell to 33.9% from prior year, reflecting business model transformation costs. The bright spot is Glob.AI ARR growing 61% quarter-over-quarter, but it hasn't offset the margin pressure. The company completed its original buyback and has $125M remaining under a new authorization. This follows a class action lawsuit filed in May and a strategic alliance with Vercel in July. The stock trades at 6x forward earnings, with a median price target of $50.
At the time of this announcement, GLOB was trading at $33.89 on NYSE in the Technology sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $27.56 to $79.67. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.