Globant Q2 Earnings Beat Expectations, Q3 Forecast Below Consensus

Globant's Q2 financial results exceeded expectations, but its Q3 forecast fell short of consensus estimates, causing shares to drop 8% in early trading. The company reported adjusted EPS of $1.53 for Q2, beating expectations. However, its Q3 forecast was below estimates, leading to a decline in share value.

Globant (NYSE: GLOB) reported its second quarter (Q2) financial results, which exceeded market expectations, but its third quarter (Q3) forecast fell short, causing shares to drop 8% in early trading. The company reported adjusted earnings per share (EPS) of $1.53 for Q2, surpassing estimates. However, its Q3 forecast was below consensus estimates, leading to a decline in share value.

Globant's Q2 2025 financial results showed revenues reaching $614.2 million, representing a 4.5% year-over-year (YoY) growth. The company's adjusted operating margin was 15.0%, with adjusted diluted EPS of $1.53. Despite the strong financial performance, a one-time charge of $47.6 million related to the Business Optimization Plan pushed IFRS diluted EPS into negative territory at -$0.05, compared to $0.87 last year [2].

The company's pipeline reached an all-time high of $3.7 billion, up 25% YoY, driven by AI initiatives including AI Pods, subscription models, and the Globant Enterprise AI platform. For Q3 2025, Globant expects revenues of at least $615.0 million, with an adjusted profit margin of 15.0%. Full-year 2025 guidance projects revenues of at least $2,445.0 million, representing 1.2% growth, with adjusted EPS of at least $6.12 [2].

Globant's Q2 results indicate a company in strategic transition toward AI-focused services. The modest 4.5% revenue growth and strong pipeline growth signal a focus on business model transformation over immediate growth. However, the one-time charge led to negative EPS despite the strong pipeline growth.

Looking ahead, Globant's guidance suggests continued modest growth with Q3 revenue projected at $615 million (0.1% YoY growth) and full-year 2025 revenue of $2,445 billion (1.2% YoY growth). These projections, combined with their maintained margin guidance of 15.0%, indicate the company expects its strategic pivot to stabilize before accelerating growth.

References:
[1] https://seekingalpha.com/news/4485804-globant-slides-as-q3-forecast-comes-in-below-expectations
[2] https://www.stocktitan.net/news/GLOB/globant-reports-2025-second-quarter-financial-zgjkcl5mj8uu.html