Will Softer Earnings and Cautious Guidance Change Globant's (GLOB) Long-Term Growth Narrative?

• Globant recently reported third quarter results showing sales of US$617.14 million and a decline in net income and earnings per share, and also issued earnings guidance for both the fourth quarter and full year 2025 indicating minimal year-over-year revenue growth.
• Despite revenue growth supported by favorable currency effects, Globant's profitability declined and its outlook reflects persistent industry headwinds and softer demand for digital transformation services.
• We'll explore how Globant's softer earnings and cautious revenue guidance may reshape its longer-term growth outlook and investment thesis.

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Globant Investment Narrative Recap

To be a shareholder in Globant, you need to believe the company can regain momentum in digital transformation and AI services despite persistent headwinds in its core markets. The recent earnings miss and cautious revenue guidance materially impact the biggest short-term catalyst, renewed enterprise IT spending, while amplifying the main risk of ongoing demand softness and delayed client projects.

The most relevant announcement is Globant's new guidance for fourth quarter and full year 2025 revenues, signaling minimal growth even with positive currency tailwinds. This directly aligns with near-term concerns about conversion of the project pipeline and raises fresh questions about whether the slower pace in digital transformation adoption could weigh on earnings visibility.

Yet, with competition intensifying and margin pressures mounting, investors should be mindful that…

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

Globant's narrative projects $3.0 billion revenue and $242.1 million earnings by 2028. This requires 6.1% yearly revenue growth and a $131.8 million increase in earnings from $110.3 million today.

Uncover how Globant's forecasts yield a $86.48 fair value, a 38% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community estimate Globant’s fair value from US$61.97 to US$121.01. These views highlight just how much opinions can differ, especially as the company’s minimal guidance for revenue growth keeps uncertainty high for future results.

Explore 6 other fair value estimates on Globant - why the stock might be worth just $61.97!

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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