A Look at Globant (NYSE:GLOB) Valuation Following GEAI 2.3 Launch and AWS Partnership Expansion

Globant (NYSE:GLOB) just rolled out version 2.3 of its proprietary Enterprise AI platform, expanding transactional AI features for enterprise users. This launch comes as the company announced a multi-year strategic partnership with Amazon Web Services.

See our latest analysis for Globant.

Globant’s momentum is beginning to build again, thanks to the flurry of recent developments such as the expanded AWS partnership and a new share buyback program targeting $125 million in repurchases. Despite lighter sentiment seen in the past year, as reflected in a 12-month total shareholder return of -0.7%, the business continues to invest for future growth. Recent moves could help shift perceptions as demand for enterprise AI deepens.

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With shares trading at a significant discount to analyst targets and a buyback program underway, does current market caution signal an overlooked value? Or is Globant’s potential resurgence already fully reflected in the price?

Most Popular Narrative: 43% Undervalued

Globant’s widely followed narrative points to a fair value of $104.05, much higher than its last closing price of $58.94. This sets up heightened expectations about both future earnings and the company’s new AI-powered initiatives.

The transition to outcome-based, subscription pricing models, enabled by Globant's AI pods and proprietary platforms, shifts the revenue mix toward higher-margin, recurring services. Early traction with this model (18 clients signed, significant portion of pipeline growth) is set to drive higher earnings visibility, enhanced client stickiness, and structurally improved net margins as AI process automation scales.

Read the complete narrative.

Want to know what’s driving this ambitious target? The secret sauce is a bold blend of margin upgrades, fresh recurring revenues, and a new profit formula that could rewrite Globant’s future. Get the full details to see which financial assumptions place such a high value on these shares.

Result: Fair Value of $104.05 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing macroeconomic uncertainty and slower client adoption of AI-focused services could quickly challenge the optimistic outlook surrounding Globant's turnaround story.

Find out about the key risks to this Globant narrative.

Build Your Own Globant Narrative

If the current perspective doesn’t match your own or you want to explore the numbers firsthand, you can craft a personal narrative in just a few minutes. Do it your way.

A great starting point for your Globant research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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