Shares of Globant SA (NYSE: GLOB) plunged 26.92% in pre-market trading on Friday following the release of disappointing first-quarter results and a significant reduction in the company's full-year outlook. The information technology services provider faced headwinds due to a slowdown in customer spending amid macroeconomic uncertainties.

Globant reported adjusted earnings of $1.50 per share for Q1 2025, falling short of the $1.58 per share analysts had expected. While revenue increased by 7% year-over-year to $611.1 million, it still missed the consensus estimate of $621.38 million. The company's Chief Financial Officer, Juan Urthiague, attributed the underperformance to heightened macroeconomic uncertainty affecting customer spending, a trend expected to persist throughout the year.

In response to the challenging environment, Globant drastically cut its full-year 2025 guidance. The company now expects adjusted earnings of at least $6.10 per share on revenue of at least $2.46 billion, down from its previous forecast of $6.80 to $7.20 per share on revenue between $2.64 billion and $2.71 billion. This revised outlook falls significantly below analysts' expectations of $6.81 per share on $2.63 billion in revenue. Additionally, Globant's Q2 2025 guidance of at least $1.52 per share on revenue of at least $612 million also missed Wall Street projections. Despite these challenges, CEO Martín Migoya emphasized the company's focus on artificial intelligence-related opportunities to drive growth in the current macro environment.