Overview
Luxembourg-based IT services firm's Q4 revenue fell 4.7% yr/yr but exceeded company guidance
Adjusted EPS for Q4 declined compared to the previous year
Company invested $50 mln in share repurchase during Q4
Outlook
Globant expects Q1 2026 revenue between $598 mln and $604 mln, a 2.1% to 1.2% decline
Globant forecasts FY 2026 revenue between $2,460 mln and $2,510 mln, up 0.2% to 2.2%
Globant sees FY 2026 Non-IFRS adjusted EPS between $6.10 and $6.50
Result Drivers
AI PODS AND SUBSCRIPTION MODEL - Introduction of AI-native Pods and token-based subscription model contributed to Q4 results
RECORD CASH FLOW - Achieved highest quarterly free cash flow in company history, driven by operational discipline
STRONG PIPELINE - Over $3 bln pipeline and solid bookings indicate strong future prospects
Company press release: ID:nPrep6X3Fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 EPS | $0.93 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Globant SA is $80.50, about 80.8% above its February 25 closing price of $44.53
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)