Globant SA Q2 2025 Earnings Highlights: AI Partnerships Drive Pipeline Growth Amidst Market Challenges.

Globant SA reported Q2 2025 revenue of $614.2 million, a 4.5% YoY growth, and an all-time high pipeline of $3.7 billion, up 25% from the previous year. The company's AI subscription model has gained traction, and it has formed strategic partnerships with major players like OpenAI and Amazon Web Services. However, the macroeconomic environment has led to extended sales cycles, impacting pipeline conversion and free cash flow. Globant expects minimal revenue growth for Q3 2025 and a sequential revenue decline of 2% in North America.

Globant SA (NYSE: GLOB), a leading digital transformation and AI services provider, released its second-quarter 2025 financial results today, showing resilience in a challenging macroeconomic environment. The company reported revenues of $614.2 million, representing a 4.5% year-over-year (YoY) growth, and an all-time high pipeline of $3.7 billion, up 25% from the previous year [1].

The company's AI subscription model and strategic partnerships, such as those with OpenAI and Amazon Web Services, have contributed to its growth. However, extended sales cycles due to the macroeconomic environment have impacted pipeline conversion and free cash flow. Despite these challenges, Globant's operational discipline and strategic investments have allowed it to maintain strong financial performance.

Globant's adjusted operating margin for the second quarter was 15.0%, and its adjusted diluted earnings per share (EPS) was $1.53, reflecting consistent execution and adaptability in a dynamic market [1]. The company's geographic revenue breakdown for the second quarter was 54.1% from North America, 19.7% from Latin America, 19.6% from Europe, and 6.6% from New Markets, with the US and Argentina being the top revenue-generating countries [1].

Looking ahead, Globant expects minimal revenue growth for the third quarter 2025 and a sequential revenue decline of 2% in North America. The company's third-quarter 2025 revenue is estimated to be at least $615.0 million, with an adjusted profit from operations margin of at least 15.0% and an adjusted diluted EPS of at least $1.53 [1]. For the full year 2025, revenue is estimated to be at least $2,445.0 million, with an adjusted profit from operations margin of at least 15.0% and an adjusted diluted EPS of at least $6.12 [1].

Globant's shareholder letter and a video conference call to discuss the second-quarter 2025 results will be available on the company's website. The conference call will take place today at 4:30 pm ET and will be followed by a live Q&A session [1].

References:

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