GLOB Will See AI And FIFA Wins Drive Long-Term Rebound

The analyst price target for Globant has been cut significantly to align with a lower fair value estimate of about $124 from roughly $180, as analysts factor in slower organic revenue growth, lingering demand and structural IT services headwinds, and a reset to more moderate future earnings multiples, despite slightly better margin expectations.

Analyst Commentary

Recent Street research reflects a cautious but not uniformly negative stance on Globant, with most firms converging around a more modest growth and valuation framework. Target prices have been reset lower to reflect slower organic growth, exposure to softer end markets, and sector wide IT services headwinds. This reinforces the view that a sustained reacceleration is more likely a multi year story rather than an imminent catalyst.

Several research notes underscore that industry trends are unlikely to materially improve in the near term, and that Globant's transition to a new business model could temporarily weigh on execution and visibility. Neutral and Hold ratings dominate recent commentary, signaling that many observers prefer to stay on the sidelines until there is clearer evidence of a bottom in revenue growth and a more durable demand recovery.

At the same time, analysts generally acknowledge that sentiment across the sector has already reset lower, with expectations now better aligned to a more challenging macro and structural backdrop. As a result, current valuations are increasingly being framed as reflecting a transition phase rather than implying a permanent impairment to Globant's long term earnings power, particularly if management can deliver on its pipeline and AI related initiatives.

Bullish Takeaways

• Bullish analysts highlight that, despite near term pressure, Globant's Q3 results and outlook were broadly in line with expectations, supporting the view that execution remains disciplined even in a weak IT spending environment.
• Some see the company's healthy pipeline and bookings as underpinning a gradual reacceleration in growth from FY26 onward, especially as AI projects move from proof of concept into full production, which could justify a higher earnings multiple over time.
• Where Buy ratings are maintained, targets in the $80 range are framed as reflecting upside from current levels if management can convert its AI and digital transformation opportunities into sustained double digit organic growth.
• Bullish analysts also argue that as revenue growth approaches a trough and sector demand stabilizes, sentiment could shift positively, allowing Globant's valuation to rerate closer to its historical premium if margin discipline is preserved.

What's in the News

• FIFA expanded its multi year agreement with Globant, naming the company a Tournament Supporter for the FIFA World Cup 2026 and FIFA Women's World Cup 2027, and tasking it with enhancing FIFA's digital platforms and developing a new fan engagement app across multiple tournaments (Key Developments).
• Globant issued 2025 guidance calling for at least $2.45 billion in revenue, implying low single digit year over year growth and a slight decline in fourth quarter 2025. This underscores the muted demand backdrop already reflected in lowered price targets (Key Developments).
• YPF and Globant launched Digital Suppl.AI, an agentic AI platform built under Globant's AI Pods model to automate and modernize YPF's supply chain, targeting cost optimization and productivity gains across procurement and inventory management (Key Developments).
• Globant deepened its cloud and AI positioning through a new multi year strategic collaboration with Amazon Web Services. This builds on its AWS Studio and recent Premier Tier and Managed Security Services Provider competencies to deliver sector specific digital transformation solutions (Key Developments).
• The Board authorized a share repurchase program of up to $125 million through the fourth quarter of 2026, signaling confidence in long term value creation despite near term growth headwinds (Key Developments).

Valuation Changes

• The Fair Value Estimate has fallen significantly, reduced from about $180.01 to approximately $124.16 per share.
• The Discount Rate has risen slightly, moving from roughly 8.86 percent to about 8.89 percent, reflecting a marginally higher perceived risk profile.
• The Revenue Growth Assumption has been cut materially, from around 8.42 percent to roughly 4.61 percent, indicating expectations for a slower expansion pace.
• The Net Profit Margin Outlook has improved modestly, increasing from about 9.94 percent to approximately 10.68 percent.
• The Future P/E Multiple has compressed meaningfully, declining from roughly 34.0x to about 23.7x, signaling a more conservative valuation framework.