Globant Plunges 11.99% as Q3 Guidance Disappoints

Generated by AI AgentAinvest Pre-Market Radar
Friday, Aug 15, 2025 5:55 am ET1min read
Aime RobotAime Summary

- Globant's stock fell 11.99% pre-market after Q3 guidance missed expectations despite strong Q2 earnings.

- The company reported $1.50 EPS (under $0.08) and 7% YoY revenue growth but projected lower-than-expected 2025 results.

- Investors questioned management's AI-driven strategy as the earnings-guidance gap eroded market confidence.

On August 15, 2025, Globant's stock experienced a significant drop of 11.99% in pre-market trading.

Globant's second-quarter earnings exceeded expectations, but the company's guidance for the third quarter led to a decline in its share price. Analysts had predicted a potential upside of nearly 59%, but the actual performance fell short of these expectations. The company's revenue projections for the third quarter and the full year 2025 were below consensus estimates, indicating that the market was not satisfied with the company's outlook.

Despite the company's optimistic outlook on AI-driven growth, the sharp drop in stock price post-earnings suggests that investors were not convinced by the management's strategic focus. The company's earnings report showed a missed EPS estimate of $1.50, falling short of expectations by $0.08, while revenue increased by 7.0% year-over-year. This discrepancy between earnings and guidance has led to a decline in investor confidence, resulting in the significant drop in stock price.

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