Mizuho Lowers Globant S.A. PT to $91 Following Revised 2025 Guidance

Mizuho reduced its price target on Globant S.A. (NYSE:GLOB) from $153 to $91, keeping an 'Outperform' rating. The revision follows Globant's revised 2025 guidance, projecting constant-currency revenue growth between -1% and +1%, down from a prior 2% forecast. Mizuho highlighted longer sales cycles, reduced customer spending, and weaker pipeline conversion across various segments. Despite this, the firm remains confident in Globant's long-term growth outlook.

Mizuho Financial Group has revised its price target for Globant S.A. (NYSE: GLOB) from $153 to $91, maintaining an 'Outperform' rating. The move follows Globant's recent revision of its 2025 guidance, projecting constant-currency revenue growth between -1% and +1%, down from a prior forecast of 2% growth. The downgrade reflects longer sales cycles, reduced customer spending, and weaker pipeline conversion across various segments [1].

Globant reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of $1.52. Revenues in the quarter totaled $614.2 million, a 4.5% year-over-year increase, surpassing the Zacks Consensus Estimate of $613 million [1]. However, the company's pipeline hit a record $3.7 billion, up 25% from last year, indicating significant market opportunity despite the challenges.

Mizuho highlighted that Globant's revised outlook reflects longer sales cycles and reduced customer spending, particularly in the Media and Entertainment segment, which saw a 8.3% year-over-year decrease in revenues. The Technology & Telecommunications segment also experienced a 9.8% decline, while the Travel & Hospitality segment grew by 24.6%. The company's top customer, top five customers, and top 10 customers accounted for 8.6%, 20.3%, and 29.3% of revenues, respectively [1].

Despite the challenges, Mizuho remains optimistic about Globant's long-term growth prospects. The firm noted that Globant's partnership with Unity Software Inc. (U) could provide a boost to its revenue streams and expand its market presence. Through this partnership, Globant will assist enterprises in accessing Unity's real-time 3D technology and digital asset management solution, potentially accelerating product development and enhancing customer engagement [2].

In response to the revised outlook, Globant's shares declined almost 15% in trading on Friday. The stock has lost 67.1% against the Zacks Internet- Software and Services industry's growth of 37.1% over the past year [1].

References:
[1] https://ca.finance.yahoo.com/news/globant-q2-earnings-revenues-beat-151100675.html
[2] https://www.tradingview.com/news/zacks:236b50ccf094b:0-unity-software-partners-with-globant-to-enhance-global-tech-adoption/