Shares of Globant SA (GLOB) plunged 23.99% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results. The significant drop came as the company's earnings and revenue figures fell short of analyst expectations, and its forward guidance disappointed investors.

For Q1 2025, Globant reported revenues of $611.1 million, representing a 7.0% increase year-over-year. However, this figure missed the analyst consensus estimate of $621.38 million by 1.66%. The company's adjusted earnings per share (EPS) came in at $1.50, falling short of the expected $1.58 and marking a 1.96% decrease from the same period last year.

Despite the revenue growth, investors seemed concerned about Globant's profitability and future outlook. The company's IFRS Gross Profit Margin slightly decreased to 34.9% from 35.4% in the previous year. Additionally, Globant's financial outlook for Q2 2025 estimates revenues of at least $612.0 million, reflecting only a 4.2% year-over-year growth, which may have contributed to the negative market reaction. For the full fiscal year 2025, the company anticipates a Non-IFRS Adjusted Diluted EPS of at least $6.10, which might be viewed as conservative by some investors given the current economic climate and increasing competition in the tech sector.