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Globant reported third-quarter 2025 results with revenue of US$617.14 million, slightly above the previous year’s figure, but net income and earnings per share both declined substantially year-over-year, prompting concerns about operational efficiency.
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The company announced a US$125 million share repurchase program and highlighted record growth in its AI-driven pipeline, including expanded partnerships and increasing client adoption of subscription-based AI solutions.
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We’ll examine how Globant’s earnings miss, despite pipeline growth and a buyback, shapes its investment outlook going forward.
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To be a Globant shareholder today, you need to believe that its AI-driven offerings and expanding partnerships will convert a record pipeline into sustained, profitable growth, despite evidence of near-term earnings pressure. The latest results saw revenue edge higher, but declining margins and a cautious Q4 outlook reinforce that the pace of digital transformation projects and client adoption of new AI models remain the most important catalysts, while unpredictability in deal conversions is the key risk. In the short term, the impact of this earnings miss reinforces concerns about demand softness rather than changing the underlying drivers, so the main risk remains material for now.
Among the recent announcements, Globant’s US$125 million share repurchase program stands out in context. It signals confidence in its long-term opportunity, but also draws attention to current margin pressure and the need to reassure investors as the business works to scale its new AI and subscription-oriented initiatives. This move does not reduce the importance of converting backlog into actual revenue, especially given the subdued growth outlook.
By contrast, investors should be aware of how persistent delays in deal conversions and an unpredictable pipeline could affect…
Read the full narrative on Globant (it’s free!)
Globant’s narrative projects $3.0 billion revenue and $242.1 million earnings by 2028. This requires 6.1% yearly revenue growth and a $131.8 million earnings increase from $110.3 million.
Uncover how Globant’s forecasts yield a $95.62 fair value, a 57% upside to its current price.
Six Simply Wall St Community members provided fair value estimates for Globant, ranging from US$61.97 to US$120.50 per share. With revenue growth continuing to trail analyst expectations, the risks from delayed deal closures and slower client demand remain at the forefront for many investors.