Globant shares tumble 17% on weak guidance despite revenue beat

Luxembourg-based software services firm Globant (NYSE:GLOB) saw its shares plummet by 17% after releasing second quarter financial results and guidance that failed to meet analyst expectations. The company reported adjusted earnings per share (EPS) of $1.40, falling short of the $1.50 consensus. Revenue for the quarter amounted to $614.4 million, slightly surpassing the $613.02 million estimate, but remained static compared to the $614.2 million reported during the same period last year.

Despite a modest revenue increase, the company's guidance for the third quarter fell far below expectations, projecting revenue between $607 million and $615 million, significantly lower than the $624.6 million consensus figure.

Globant's CFO, Juan Urthiague, highlighted the company's resilience in executing its business strategies, achieving a record free cash flow generation for the first half of the year. For the third quarter, the company expects adjusted EPS of $1.43 to $1.53, with a midpoint of $1.48, which is below the $1.58 consensus. Full-year 2026 revenue guidance is set between $2.43 billion and $2.46 billion, a midpoint of $2.445 billion, trailing the $2.48 billion analyst estimate.

Similarly, full-year adjusted EPS guidance of $5.75 to $6.15, with a midpoint of $5.95, also fell short of the $6.19 consensus. Globant's Glob.AI annual recurring revenue grew by 61% to $52.8 million in the quarter, with management expecting at least $110 million by the end of 2026. The company's total employee count stood at 27,411, down from 30,084 in the previous year, indicating ongoing business optimization efforts.