Globant 2025 Q3 Earnings Mixed Results as Net Income Drops 24.9%

Globant (GLOB) reported mixed third-quarter 2025 results, with revenue rising slightly but earnings per share (EPS) falling short of expectations. The company’s non-GAAP EPS of $1.53 missed by $0.02, while revenue of $617.1 million exceeded guidance by $2 million. Q4 revenue guidance of $605 million signals a 5.8% year-over-year decline, reflecting macroeconomic headwinds and client budget constraints.

Revenue

Globant’s total revenue grew 0.4% year-over-year to $617.14 million in Q3 2025, driven by stable demand for its AI-driven services. The figure outperformed the $614.67 million recorded in the same quarter of 2024, despite a challenging market environment.

Earnings/Net Income

The company’s net income fell to $34.19 million in Q3 2025, a 24.9% decline from $45.54 million in the prior-year period. Non-GAAP adjusted diluted EPS came in at $1.53, slightly below the $1.54 consensus estimate. The EPS decline highlights margin pressures and increased tax costs, with the effective tax rate rising to 29.4% due to currency fluctuations.

Post-Earnings Price Action Review

Shares of Globant fell 10.88% in the immediate aftermath of the earnings report, driven by a $0.02 EPS miss and downward revisions to Q4 revenue guidance. While the stock gained 6.17% month-to-date as of Nov 14, the post-earnings selloff suggests investor concern over slowing growth and margin stability. Analysts have adjusted price targets, with Needham lowering its target to $80 and JPMorgan to $75, reflecting cautious sentiment.

CEO Commentary

CEO Martín Migoya emphasized progress in AI-driven initiatives, including AI Studios, AI Pods, and the 100-squared strategy. He highlighted a 30% year-over-year pipeline growth to $3.7 billion and a $125 million share buyback program as confidence-building measures. Migoya also noted 17 of the top 20 clients have adopted the AI subscription model, signaling strong adoption.

Guidance

For Q4 2025, Globant expects revenue of at least $605 million (down 5.8% YoY) and non-IFRS adjusted diluted EPS of $1.53. Full-year 2025 revenue is projected to reach $2.4474 billion (1.3% growth), with adjusted diluted EPS of $6.12.

Additional News

Globant announced a $125 million share repurchase program, underscoring long-term confidence in its AI-driven growth strategy. The company also expanded its AI portfolio with AI Studios and AI Pods, securing high-profile partnerships with YPF and Riot Games. Additionally, it launched a rebranding initiative under the GUT brand to consolidate marketing efforts. These moves aim to strengthen its position in AI transformation and client retention.