Shares of Globant SA (NYSE: GLOB) plunged 23.99% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results, which fell short of analyst expectations and provided disappointing guidance for the future.

The IT and software development company reported adjusted earnings per share of $1.50, missing the analyst consensus estimate of $1.58 by 5.06%. This represents a 1.96% decrease from the $1.53 per share earned in the same quarter last year. Revenue for the quarter came in at $611.09 million, up 7.01% year-over-year, but still falling short of the expected $621.38 million by 1.66%.

While Globant did show some growth, with revenues increasing by 7% compared to the previous year, the market's severe reaction appears to be driven by the company's weaker-than-expected performance and outlook. For the second quarter of 2025, Globant estimates revenues of at least $612 million, reflecting a modest 4.2% year-over-year growth. Additionally, the company's full-year 2025 guidance for Non-IFRS Adjusted Diluted EPS of at least $6.10 may have disappointed investors expecting stronger growth from the tech firm. The combination of missed targets and conservative future guidance likely contributed to the significant after-hours sell-off, as investors reassess Globant's growth prospects in an increasingly competitive IT services market.