Globant Q2 Non-GAAP EPS of $1.53 Beats Expectations, Revenue Hits $614.2M

Globant reported Q2 Non-GAAP EPS of $1.53, beating expectations by $0.01. Revenue reached $614.2M, a 4.6% YoY increase and $0.75M above forecasts. Shares declined by 6.29%. The company's IFRS Gross Profit Margin was 35.4%, compared to 35.7% in Q2 2024. Non-IFRS Adjusted Gross Profit also showed a slight decline.

Globant (NYSE: GLOB) has reported robust financial results for the second quarter of 2025, with Non-GAAP EPS of $1.53, exceeding analyst expectations by $0.01. Revenue reached $614.2 million, representing a 4.6% year-over-year increase and $0.75 million above forecasts. However, shares declined by 6.29% post-announcement.

The company's IFRS Gross Profit Margin was 35.4%, a slight decrease from 35.7% in the second quarter of 2024. The Non-IFRS Adjusted Gross Profit also showed a slight decline, indicating a potential slowdown in operational efficiency. Despite these minor setbacks, Globant's strategic investments and bold moves in the AI ecosystem continue to drive growth.

Globant's CEO, Martín Migoya, highlighted the company's expansion in the AI market, noting that the pipeline has reached an all-time high of $3.7 billion, up 25% year-over-year. The company's AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform are central to this growth, positioning Globant as a full-stack AI company.

The company also reported a 15.0% adjusted operating margin and an adjusted diluted EPS of $1.53, reflecting consistent execution and adaptability in a dynamic market. Globant's CFO, Juan Urthiague, emphasized the strategic investments and Business Optimization Plan, which included a one-time charge of $47.6 million, aimed at enhancing near-term profitability.

Revenue breakdown by region for the second quarter of 2025 was as follows: 54.1% from North America, 19.7% from Latin America, 19.6% from Europe, and 6.6% from New Markets. The company's top customers accounted for 8.6% of revenues, with the top five and top ten customers representing 20.3% and 29.3% of revenues, respectively.

Looking ahead, Globant expects third-quarter 2025 revenues of at least $615.0 million, with a 0.1% year-over-year growth, and a Non-IFRS Adjusted Profit from Operations Margin of at least 15.0%. For the full year of 2025, the company anticipates revenues of at least $2,445.0 million, with a 1.2% year-over-year growth.

Despite the slight decline in margins, Globant's strong performance in the AI market and strategic investments position the company for continued growth. Investors should closely monitor the company's ability to maintain operational efficiency and adapt to market dynamics.

References:

[1] https://investors.globant.com/2025-08-14-Globant-Reports-2025-Second-Quarter-Financial-Results