By Dean Seal

Globant shares jumped on signs of a solid start to the year despite ongoing uncertainty and concerns about sluggish spending in the IT services sector.

The stock was up 13% at $38.58 on Friday. Shares are still down 41% since the start of the year.

The technology consulting firm said revenue in the current quarter is expected to come in between $610 million and $616 million, straddling the $614 million it hit in the same quarter last year. The company stuck by full-year guidance for $2.46 billion to $2.51 billion in revenue.

Revenue for the first quarter was $607.1 million, topping analyst projections for $601.7 million, according to FactSet. Adjusted earnings of $1.50 a share came in a penny above analyst targets.

The first quarter is being seen as the trough of a cycle that will allow revenue to accelerate each quarter through the rest of the year, UBS analysts said in a note. The company's guidance is supported by some already-signed large contracts that are entering ramp-up phases, they said.

Globant is also seeing some success with its strategy around AI Pods, a subscription service for artificial intelligence-powered engineering and IT work, several analysts said. AI Pods generated more revenue and were incorporated in 40% of the company's top 20 customers.

"We believe this was a good start to the year for Globant with its AI Pods approach gaining traction," Wedbush analysts said in a note, though they added that Globant is still in the early stages of its turnaround.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 15, 2026 11:51 ET (15:51 GMT)

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