Update shared on23 Sep 2025
Fair value Decreased 2.02%Analysts have lowered Globant's price target due to delayed revenue growth, increased macro uncertainty, and diminished confidence in its ability to outperform peers, resulting in a reduced fair value from $106.20 to $104.05.
Analyst Commentary
- Bearish analysts have significantly lowered revenue guidance for fiscal 2025 and now see positive growth delayed to fiscal 2026.
- Macro uncertainty, including delayed client decision-making and weak trade and consumer spending outlooks, are reducing industry confidence and near-term growth expectations.
- Former assumptions about Globant’s premium growth and strong track record are now challenged, with analysts less convinced of outperformance relative to peers.
- Recent industry-wide underperformance relative to the S&P 500 has increased scrutiny and caution, particularly given post-election optimism that has since faded.
- Some analysts remain optimistic regarding Globant’s long-term platform quality, consistent sales growth, margin expansion, and AI-native potential, though this is tempered by near-term growth concerns.
What's in the News
- Globant entered a global partnership with Unity Software, joining the Unity Service Partner Program to jointly deliver interactive solutions and digital twins across high-growth sectors, while scaling Unity-powered offerings and training Globant talent on Unity platforms globally.
- The company issued Q3 2025 revenue guidance of at least $615.0 million (0.1% YoY growth, including 50bps positive FX impact) and full-year 2025 guidance of at least $2,445.0 million (1.2% YoY growth, with 25bps positive FX impact).
- Globant upgraded its Enterprise AI platform (GEAI) to support Model Context Protocol and Agent2Agent protocol, significantly enhancing interoperability with major third-party AI frameworks, enabling faster legacy modernization (80% reduction in time) and 50% lower software development costs for clients.
- Strategic partnership with Suntory Global Spirits to deploy a generative AI-powered Commercial Insights Agent, automating data insight workflows and reducing time-to-action for sales, marketing, and strategy, with the potential for broader use cases within Suntory.
Valuation Changes
Summary of Valuation Changes for Globant
- The Consensus Analyst Price Target has fallen slightly from $106.20 to $104.05.
- The Consensus Revenue Growth forecasts for Globant has significantly fallen from 6.1% per annum to 4.7% per annum.
- The Future P/E for Globant has risen slightly from 26.03x to 26.65x.
Disclaimer
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