Globant S.A. (GLOB)

Price$39.05Cached quoteAs of 2026-09-04 16:23 UTC

AI: Undervalued

Price checkThe shares look cheap because the price discounts a severe and lasting earnings decline.

Using about 43.6 million diluted shares, the observed price implies a $1.65 billion equity value. Against 2025 free cash flow—cash left after operations and capital spending—of $282 million, that is about 5.8 times cash flow, or roughly 6.7 times after adding June 2026 net debt. It is also about 6.3 times management’s midpoint for 2026 adjusted earnings, although those earnings exclude stock awards, restructuring, and acquisition costs. My undervalued verdict assumes normalized yearly cash remains above roughly $150 million; a lasting collapse below that would remove the discount.

Big pictureGrowth has stalled, but cash generation remains much stronger than reported profit.

Revenue rose from $814 million in 2020 to $2.45 billion in 2025, but 2025 growth slowed to 1.6%. Operating profit fell 24% and net income fell 38%, showing demand weakness and restructuring effects. Yet operating cash rose 21% to $301 million; after $19 million of capital spending, free cash flow reached $282 million, up 28%. Second-quarter 2026 revenue was flat, while full-year guidance allows a 1.1% decline. Customer delays and discretionary project timing make this business cyclical; cash durability is encouraging, but working-capital timing means one strong year may not be permanent.

Business strengthManageable debt and customer breadth soften risk, while acquisition-heavy assets deserve caution.

At 2025 year-end, $954 million of current assets covered $580 million of current liabilities; cash was $244 million against $474 million of debt, leaving manageable $230 million net debt. The weaker protection is asset quality: $1.60 billion of goodwill, created mainly by acquisitions, represented 48% of assets. Shares outstanding rose 9.5% from 2020 through 2025, while 2025 stock compensation was $76 million, 27% of free cash flow. Buybacks are now countering dilution: Globant spent $75 million in the first half of 2026 and authorized another $125 million, sensible at a low valuation but a use of limited cash.

What could change the storySuccessful artificial intelligence pricing could revive growth; continued customer delays could erase the bargain.

The bull case requires Glob.AI’s annual recurring revenue—the yearly run rate of repeatable sales—to rise from $52.8 million in the second quarter to at least $110 million exiting 2026, while adjusted operating margins recover toward 14% or better. That would show output-based pricing can replace labor-hour sales profitably. The bear case is observable too: adjusted margin fell to 13.2% from 15.0%, and million-dollar customer accounts fell to 331 from 339. If legacy work shrinks faster than the new service grows, even today’s low multiple may be justified.

AI: News

Guidance cut after flat quarterSales held flat, profits missed expectations, and lower guidance signaled a slower recovery.

On August 13, Globant reported second-quarter revenue of $614.4 million, virtually unchanged year over year. Adjusted earnings of $1.40 per share missed the $1.50 consensus, and the company cut 2026 revenue guidance to $2.428-$2.462 billion, spanning a 1.1% decline to 0.3% growth. Shares closed 8.8% lower the next session. The timing makes the weaker outlook a plausible driver, but does not prove it was the only cause.

New service gains tractionThe new artificial intelligence service grew quickly, but remains too small to offset legacy weakness.

Globant launched Glob.AI on August 6 as a self-service way to buy supervised artificial intelligence work by output or consumption rather than employee hours. On August 13, management reported $52.8 million of annual recurring revenue, up 61% from the prior quarter, and targeted at least $110 million by year-end. The opportunity is higher-value, repeatable revenue; the risk is that cheaper automated delivery reduces the company’s larger traditional services business before the new model scales.

Buybacks expandA larger buyback can reduce dilution while limiting balance-sheet flexibility.

On May 18, Globant authorized up to $125 million of repurchases through the fourth quarter of 2027, capped at $50 million per quarter and not guaranteed. It had already spent $75 million under the prior program during the first half of 2026; the new authorization remained unused at June 30. At the observed market value, the authorization equals roughly 8% of the company, potentially offsetting employee-share dilution. However, June cash and short-term investments were $169 million versus $422 million of borrowings, so aggressive purchases would reduce financial flexibility.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$2.45B	$2.42B	$2.10B	$1.78B	$1.30B	$814.1M	$659.3M	$522.3M	$413.4M	$322.9M	$253.8M
Gross profit	$859.3M	$863.4M	$755.8M	$669.4M	$495.0M	$304.3M	$254.2M	$203.8M	$150.3M	$131.5M	$93.5M
Gross margin	35.00%	35.74%	36.06%	37.60%	38.16%	37.38%	38.55%	39.01%	36.35%	40.72%	36.84%
Operating expenses	$687.6M	$637.9M	$556.8M	$462.7M	$350.6M	$220.4M	$173.4M	$137.0M	$117.1M	$81.9M	$69.8M
Operating income	$171.7M	$225.4M	$199.0M	$206.7M	$144.4M	$83.9M	$80.7M	$66.8M	$33.2M	$49.6M	$23.7M
Operating margin	7.00%	9.33%	9.49%	11.61%	11.14%	10.31%	12.25%	12.79%	8.02%	15.35%	9.35%
EBITDA	$364.4M	$401.8M	$358.0M	$314.9M	—	—	—	—	—	—	—
EBITDA margin	14.84%	16.63%	17.08%	17.69%	—	—	—	—	—	—	—
Net income	$104.0M	$169.0M	$158.5M	$149.5M	$96.4M	$54.2M	$54.0M	$51.6M	$30.5M	$35.9M	$31.6M
Net profit margin	4.23%	7.00%	7.56%	8.40%	7.43%	6.66%	8.19%	9.88%	7.37%	11.11%	12.46%
Basic EPSper basic share	$2.33	$3.82	$3.72	$3.55	$2.35	$1.41	$1.48	$1.45	$0.87	$1.04	$0.93
Diluted EPSper diluted share	$2.29	$3.72	$3.64	$3.47	$2.28	$1.37	$1.43	$1.41	$0.84	$1.01	$0.90

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of GLOB
Holder	Shares held
BlackRock, Inc.	4.45M
BRANDES INVESTMENT PARTNERS, LP	4M
PZENA INVESTMENT MANAGEMENT LLC	3.86M
Alyeska Investment Group, L.P.	2.95M
Capital International Investors	1.86M
WELLINGTON MANAGEMENT GROUP LLP	1.71M
AQR CAPITAL MANAGEMENT LLC	1.19M
TWO SIGMA INVESTMENTS, LP	1.18M
MORGAN STANLEY	1.17M
GOLDMAN SACHS GROUP INC	1.16M
ALLIANCEBERNSTEIN L.P.	1.1M
Clearbridge Investments, LLC	992.51K
JPMORGAN CHASE & CO	986.18K
UBS Group AG	889.31K
D. E. Shaw & Co., Inc.	804.69K
STATE STREET CORP	793.89K
RIVERBRIDGE PARTNERS LLC	769.82K
FIRST TRUST ADVISORS LP	742.74K
FEDERATED HERMES, INC.	698.27K
ROYAL BANK OF CANADA	688.32K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$971.7K disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 27, 2026Form 4	Aguzin Alejandro NicolasDirector	BuyCommon Stock	25.0K	$38.87	$971.7K	48.2K

Review ownership filings at SEC.gov ↗

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