Update shared on 04 Dec 2025
Fair value Decreased 2.48%Analysts have modestly reduced their price target on Globant to about $84 from roughly $86, reflecting slightly slower expected revenue growth and a lower future earnings multiple as they factor in muted industry trends and the company’s lagging organic growth versus peers.
Analyst Commentary
Recent Street research reflects a cautious but not uniformly negative stance on Globant, with most firms trimming price targets and highlighting execution risks as the company navigates a softer demand environment and a transition in its business model.
Bullish Takeaways
- Bullish analysts point to broadly in line Q3 results and guidance as evidence that, despite macro headwinds, Globant is executing reasonably well against current expectations.
- Management commentary around a healthy pipeline and solid bookings supports the view that revenue growth could reaccelerate in fiscal 2026, providing some underpinning for valuation on a medium term horizon.
- There is growing conviction that AI related projects will move from proof of concept into full production over the next couple of years, which could expand Globant's addressable market and support higher growth and margins.
- Even after target cuts, some bullish analysts maintain Buy ratings, signaling belief that the current share price already discounts much of the near term cyclical weakness.
Bearish Takeaways
- Bearish analysts emphasize that Globant's organic growth is lagging peers, in part due to heavier exposure to underperforming regions and industry verticals, which raises concern about execution and competitive positioning.
- Several firms have moved to more neutral or Hold stances with price targets in the low to mid $60s and $70s, arguing that the stock's valuation leaves limited upside until revenue growth clearly bottoms and reaccelerates.
- Muted IT services demand and structural challenges tied to AI driven disruption are seen as constraints on near term growth, with some expecting revenue headwinds to persist through at least 2026.
- The introduction of a new business model is viewed as an additional source of uncertainty, with some bearish analysts expecting a longer and bumpier path back to normalized growth and profitability.
What's in the News
- FIFA and Globant expanded their collaboration, with Globant set to enhance FIFA's digital platforms, build a new fan facing mobile app, and act as a Tournament Supporter for the FIFA World Cup 2026 and FIFA Women's World Cup 2027, as well as other key tournaments (client announcement).
- Globant issued 2025 guidance calling for at least $2.45 billion in full year revenue, implying low single digit growth, and at least $605 million in fourth quarter revenue, reflecting a year over year decline despite modest FX tailwinds (corporate guidance).
- YPF and Globant launched Digital Suppl.AI, an agentic AI platform aimed at modernizing YPF's supply chain through dozens of specialized AI agents under Globant's AI Pods subscription model, with a goal of improving productivity and cost efficiencies (product related announcement).
- Globant and Adobe partnered with Red Sea Global to power personalized, AI driven digital experiences for visitors to the Red Sea destination, with Globant leading the end to end implementation of the Connected Visitor Experience (client announcement).
- Globant's board authorized a new share repurchase program of up to $125 million, with plans to buy back $50 million of stock per quarter through the fourth quarter of 2026 (buyback announcement).
Valuation Changes
- Fair Value Estimate edged down slightly to about $84 from roughly $86, reflecting a modestly less optimistic outlook.
- Discount Rate has risen marginally to approximately 8.9% from about 8.8%, implying a slightly higher required return for investors.
- Revenue Growth eased slightly to around 3.7% from roughly 3.8%, signaling a modest downgrade to top line expectations.
- Net Profit Margin improved slightly to about 9.5% from roughly 9.4%, indicating a small expected enhancement in profitability.
- Future P/E was reduced modestly to roughly 18.6x from about 19.3x, suggesting a somewhat lower valuation multiple applied to forward earnings.
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