Update shared on16 Aug 2025
Fair value Decreased 9.46%Globant's analyst target price has been cut from $126.85 to $112.70, reflecting concerns over weaker 2025 revenue guidance, macro uncertainty, and sector rotation toward more predictable growth and profitability, despite longer-term optimism around its AI-driven prospects.
Analyst Commentary
- Bearish analysts are lowering price targets due to Globant's reduced fiscal 2025 revenue guidance and uncertainty over the company’s ability to return to positive growth in 2026.
- Macro uncertainty and delayed client decision-making are impacting near-term growth expectations and sentiment toward the stock.
- Sector-wide pressures from underperformance versus the S&P 500 and rising investor concerns about trade uncertainty and consumer spending have led to a more cautious industry outlook.
- Preference in the current environment is shifting to companies with reliable sales growth, margin expansion, and strong free cash flow, affecting Globant's relative appeal.
- Bullish analysts note Globant’s high-quality platform and potential for growth reacceleration in an AI-driven landscape, supported by sustained strong EBITDA margins, but see this as a longer-term story.
What's in the News
- Globant provided Q3 and full-year 2025 guidance, projecting minimal revenue growth (at least $615M for Q3, +0.1% y/y; at least $2.445B for the year, +1.2% y/y), both including small positive FX impacts.
- The company significantly upgraded its Globant Enterprise AI (GEAI) platform, enhancing interoperability with industry-leading AI platforms and enabling enterprises to reduce legacy modernization times by 80% and software development costs by 50%.
- Globant partnered with Suntory Global Spirits to launch a generative AI-powered Commercial Insights Agent, enabling faster, self-serve, and more contextual business insights while reducing operational costs and manual workflows.
- The company introduced AI Pods, a subscription model offering scalable, supervised AI-powered IT services, leveraging its GEAI platform for faster time-to-market and cost efficiency across engineering, design, and development functions.
- Globant inaugurated its Middle East regional HQ in Riyadh, supporting rapid expansion (84.4% revenue growth y/y in Middle East & APAC in Q1), training local talent in AI, and launching an immersive tech and innovation hub for industry clients.
Valuation Changes
Summary of Valuation Changes for Globant
- The Consensus Analyst Price Target has significantly fallen from $126.85 to $112.70.
- The Future P/E for Globant has significantly fallen from 33.06x to 26.81x.
- The Consensus Revenue Growth forecasts for Globant has significantly risen from 5.8% per annum to 6.4% per annum.
Disclaimer
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