Globant 2025 Q3 Earnings Revenue Beats Expectations, EPS Misses by $0.02

Globant (GLOB) reported fiscal 2025 Q3 earnings on Nov 14, 2025, with revenue of $617.14 million—up 0.4% year-over-year and exceeding consensus estimates by $1.75 million. Non-GAAP EPS of $1.53 fell short of expectations by $0.02, while IFRS EPS declined 26% to $0.74. The company maintained 12 consecutive years of profitability and outlined Q4 guidance of $605 million in revenue and $1.53/share non-IFRS EPS.

Revenue

Globant’s total revenue rose 0.4% year-over-year to $617.14 million in Q3 2025, driven by strong performance in AI initiatives and client demand for enterprise solutions. The company exceeded guidance by $2 million, highlighting a 30% year-over-year increase in its $3.7 billion AI-driven pipeline.

Earnings/Net Income

Globant’s EPS declined 26% to $0.74 in Q3 2025, down from $1.00 in the prior-year quarter, while net income fell 24.9% to $34.19 million. Non-GAAP diluted EPS, however, met guidance at $1.53. Despite the decline, the company has sustained profitability for 12 consecutive years, underscoring operational resilience amid macroeconomic challenges.

Price Action

Following the earnings report, Globant’s stock edged up 0.21% during the latest trading day, 0.61% for the week, and 6.17% month-to-date. However, shares dipped 10.88% post-earnings amid mixed guidance and margin pressures.

Post-Earnings Price Action Review

The stock’s post-earnings performance reflected a tug-of-war between positive revenue momentum and concerns over EPS misses and Q4 guidance. While the 0.61% weekly gain and 6.17% monthly rise signaled optimism about AI-driven growth, the 10.88% post-earnings drop underscored investor skepticism about margin stability and macroeconomic headwinds. Analysts revised price targets downward, with Needham cutting its target to $80 and JPMorgan to $75, reflecting caution.

CEO Commentary

CEO Martín Migoya emphasized Q3’s $617.1 million revenue as a $2 million beat, driven by a 30% YoY pipeline growth to $3.7 billion and AI initiatives. He highlighted the shift from AI hype to tangible adoption, with 56.7% of bookings tied to high-potential clients. Migoya expressed confidence in the subscription model’s traction with 17 of the top 20 clients and optimism about AI’s transformative potential through partnerships like YPF and Riot Games.

Guidance

Globant guided Q4 2025 revenue of at least $605 million (down 5.8% YoY, with 150 bps FX tailwind) and full-year revenue of $2.4474 billion (1.3% YoY growth). Non-IFRS adjusted operating margin is expected to remain at least 15% for both periods, with diluted EPS of $1.53/share (Q4) and $6.12/share (full-year). Tax rates are projected at 22%-24% for Q4 and 23%-25% for the full year.

Additional News

Globant announced a $125 million share repurchase program, signaling confidence in long-term value despite near-term margin pressures. The company also launched AI Studios and AI Pods to accelerate enterprise AI adoption, with 56.7% of Q3 bookings linked to high-potential clients. Additionally, Globant expanded partnerships with YPF, Riot Games, and SAP, integrating AI into core operations to drive scalable solutions.

Market Context

The broader IT services sector remains competitive, with investors closely monitoring AI-driven growth strategies and margin stability. Globant’s guidance reflects cautious optimism, balancing AI investments with operational discipline to preserve profitability in a challenging economic environment. Analysts remain divided, with some highlighting AI’s long-term potential and others cautioning about near-term revenue declines.