Update shared on30 Aug 2025
Fair value Decreased 2.97%Globant’s consensus price target was trimmed from $109.45 to $106.45 as analysts cite macroeconomic uncertainty, slower client decision-making, reduced fiscal 2025 guidance, and ongoing sector headwinds, partially offset by continued margin strength and long-term AI opportunities.
Analyst Commentary
- Macroeconomic uncertainty and delayed client decision-making are negatively impacting near-term revenue expectations and growth visibility.
- Fiscal 2025 revenue guidance has been reduced, and delivering positive growth in fiscal 2026 is seen as a key challenge.
- The premium growth and track record thesis for Globant is now considered challenged by Bearish Analysts.
- Sector-wide underperformance, particularly among payments, processors, and IT services, is attributed to increased investor expectations and heightened trade and consumer spending concerns.
- Despite headwinds, Bullish Analysts highlight Globant’s high-quality platform, sustained EBITDA margins, and reacceleration potential in an AI-native environment.
What's in the News
- Globant formed a global partnership with Unity Software Inc., joining the Unity Service Partner Program to deliver real-time 3D and digital asset management solutions to high-growth sectors and expand Unity's commercial market presence, supported by extensive employee certification.
- The company provided Q3 and full-year 2025 revenue guidance, projecting at least $615 million for Q3 with 0.1% year-over-year growth, and at least $2.445 billion for the year, reflecting 1.2% growth, both including positive FX impacts.
- A major upgrade to Globant Enterprise AI (GEAI) introduced support for Model Context Protocol and Agent2Agent Protocol, enabling cross-platform AI agent interoperability; clients report up to 80% reduction in legacy modernization times and 50% software development cost savings.
- Globant launched a reinvention partnership with Suntory Global Spirits to deploy a generative AI-powered Commercial Insights Agent, dramatically accelerating business intelligence workflows and reducing operational costs.
- The company introduced AI Pods, a subscription-based model for AI-driven engineering, design, and testing services, powered by GEAI and supporting scalable, cost-effective business transformation.
Valuation Changes
Summary of Valuation Changes for Globant
- The Consensus Analyst Price Target has fallen slightly from $109.45 to $106.45.
- The Consensus Revenue Growth forecasts for Globant remained effectively unchanged, moving only marginally from 6.2% per annum to 6.1% per annum.
- The Future P/E for Globant remained effectively unchanged, moving only marginally from 26.71x to 26.55x.
Disclaimer
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