Is Globant’s (GLOB) Weaker Fourth-Quarter Outlook a Temporary Setback or a Shift in Strategy?

• Globant S.A. recently reported third-quarter results showing relatively flat year-over-year sales at US$617.14 million and a decline in net income to US$33.1 million, alongside updated earnings guidance for the fourth quarter and full year of 2025.
• An important insight from these announcements is the company’s guidance for at least a 5.8% decline in quarterly revenue compared to the previous year, despite some benefit from positive foreign exchange movements.
• We'll examine how Globant's expectation of lower fourth-quarter revenue growth impacts the company's investment narrative and outlook.

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Globant Investment Narrative Recap

To be a Globant shareholder, you'd need conviction in its ability to capitalize on enterprise demand for digital and AI transformation, despite near-term fluctuations. The recent guidance for negative fourth-quarter revenue growth marks a setback for the company’s most important short-term catalyst, restoring top-line acceleration through new AI-led client wins. This downward revision accentuates the risk of persistent deal conversion delays amid softer demand, although it does not fundamentally alter the long-term shift toward higher-margin services and platforms.

The Q4 2025 revenue estimate, at least US$605.0 million, representing a 5.8% year-over-year decline, even after positive foreign exchange, directly addresses these headwinds. This announcement provides clarity on the extent of demand softness, shining a spotlight on the company’s ability to convert its sales pipeline into realized revenue as the macro environment remains uncertain. The risk of delayed deal closures is something investors should pay close attention to, especially as...

Read the full narrative on Globant (it's free!)

Globant's outlook projects $3.0 billion in revenue and $242.1 million in earnings by 2028. This requires 6.1% annual revenue growth and an earnings increase of $131.8 million from current earnings of $110.3 million.

Uncover how Globant's forecasts yield a $95.62 fair value, a 52% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community vary from US$61.97 to US$119.21 per share. Many highlight revenue growth uncertainty, reflecting wide disagreement about Globant’s prospects and inviting you to compare different viewpoints.

Explore 6 other fair value estimates on Globant - why the stock might be worth as much as 90% more than the current price!

Build Your Own Globant Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Globant research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Globant's overall financial health at a glance.

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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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