Key Highlights

  • Shares fell 11.69% in pre-market trading to $36.20, down from a prior close of $40.99
  • Second quarter adjusted EPS of $1.40 missed the $1.49 estimate by 6.04%
  • Revenue of $614.4 million was roughly flat year-over-year, slightly beating the $612.9 million estimate
  • Lowered full-year 2026 Revenue guidance to $2.428 billion to $2.462 billion, from a prior $2.462 billion to $2.508 billion
  • 52-week range stands at $27.56 to $79.66, with a market Capitalization of $1.77 billion

Shares Slide on Weak Guidance Despite In-Line Revenue

Globant (NYSE:GLOB) shares fell 11.69% in pre-market trading to $36.20, down from a prior close of $40.99, after the digital transformation company missed adjusted Earnings estimates and lowered its full-year 2026 revenue guidance. Adjusted Earnings Per Share of $1.40 missed the $1.49 estimate by 6.04%, while revenue of $614.4 million was up slightly year-over-year and modestly ahead of the $612.9 million consensus.

Management cut full-year 2026 revenue guidance to a range of $2.428 billion to $2.462 billion, down from a prior range of $2.462 billion to $2.508 billion, citing soft new-market demand, travel-sector weakness, delayed North American client decisions, foreign exchange headwinds, and lower utilization.

What Globant Does

Globant is a digitally native technology services company headquartered in Luxembourg with operational roots in Buenos Aires, Argentina, that helps enterprises design, build, and scale digital products, platforms, and AI-driven solutions. The company employs over 28,000 professionals across more than 20 countries in the Americas, Europe, and Asia, serving clients in industries including financial services, healthcare, media and entertainment, retail, travel, and technology through its capability-based Studios and AI-focused platforms like Globant Enterprise AI, AI Hub, and Agents Hub.

AI Business Growth Offers a Bright Spot

Despite the broader guidance cut, GlobAI annualized Recurring Revenue grew roughly 60% sequentially to $52.8 million, with the company now expecting GlobAI annualized recurring revenue to exit 2026 at no less than $110 million, up from a prior outlook of $60 million to $100 million. The company launched a Glob AI self-service platform and named a new Chief Executive Officer of Glob AI, while AI pods adoption reached 45% of top 20 accounts. Globant also secured a high-profile AI Partnership with FIFA and recorded a one-time business optimization charge of $32.3 million in the quarter tied to rightsizing its workforce and delivery centers.

Where Things Stand

Globant's decline reflects investor disappointment with both the earnings miss and the scale of the guidance reduction, even as the company's AI-focused offerings continue to show strong growth from a smaller base. With full-year adjusted Operating Margin guidance revised to 13.5% to 14.5% and one research firm trimming its price target following the results, the pace of AI pod adoption and any stabilization in North American decision cycles will likely be the key factors determining the stock's next move.