Globant S.A. has announced a new share repurchase program, approved by its board on May 14th. The program authorizes the company to repurchase up to $50 million of its ordinary shares per quarter, commencing May 18th and running through Q4 2027, with a total program cap of $125 million.

Company Chairman and CEO Martín Migoya stated this initiative reflects confidence in the company's AI Pods model and its commitment to creating long-term shareholder value. He noted that the technology services industry is undergoing its most significant transformation ever, with unprecedented demand for cost-effective AI solutions. CFO Juan Urthiague highlighted that the program is supported by strong free cash flow and is a key component of the company's disciplined capital allocation strategy. He added that Globant will continue to invest in strategic growth initiatives while advancing the buyback.

The announcement follows Globant's recent Q1 2026 earnings report, which provides a foundation for the capital return plan. The company reported quarterly revenue of $607.1 million, a slight 0.7% year-over-year decrease, yet surpassing analyst estimates of $601.47 million and exceeding the company's own guidance. Free cash flow for the quarter was $36.1 million.

The company will determine the timing and extent of repurchases based on various factors including business and market conditions, share price, and regulatory requirements. Globant is not obligated to repurchase a specific number of shares and may suspend or terminate the program at any time without prior notice. Notably, Globant's share price has declined 62% over the past year, with this buyback plan being interpreted by the market as a signal that management believes the company is undervalued.