The EPS miss and stagnant revenue guidance confirm a demand slowdown in IT services. The Glob.AI ARR growth is a positive signal but not yet material enough to offset the core business weakness. Traders should watch for further margin compression and any client spending commentary in the earnings call. The stock may face continued pressure given the lowered forward expectations.
Price Chart
Executive Summary
Globant reported Q2 2026 Non-IFRS Adjusted Diluted EPS of $1.40, missing consensus of $1.50 by 6.5%, while revenue of $614.4M was essentially flat YoY and within guidance. The company guided Q3 2026 revenue down 1.6% to 0.3% YoY and full-year 2026 revenue down 1.1% to up 0.3% YoY, signaling a prolonged demand slowdown. The bright spot was Glob.AI ARR reaching $52.8M, up 61% QoQ, but this was insufficient to offset the broader earnings miss and stagnant top-line outlook.
Key Financial Metrics
Key Facts
- Q2 2026 Non-IFRS Adjusted Diluted EPS of $1.40 missed consensus of $1.50 by 6.5%
- Q2 2026 revenue of $614.4M was essentially flat YoY ($614.2M in Q2 2025)
- Q3 2026 revenue guidance of $607M-$615M implies a 1.6% to 0.3% YoY decline
- Full-year 2026 revenue guidance of $2,428M-$2,462M implies a 1.1% YoY decline to 0.3% YoY growth
- Glob.AI ARR reached $52.8M, up 61% QoQ, with expectation of no less than $110M exiting 2026
- Non-IFRS Adjusted Gross Profit Margin contracted to 36.5% from 38.1% YoY
- Non-IFRS Adjusted Profit from Operations Margin contracted to 13.2% from 15.0% YoY
- Free cash flow improved to $12.6M from negative $2.9M in the prior year quarter
- Employee count declined to 27,411 from 30,084 YoY, reflecting ongoing restructuring
Financial Impact
EPS miss of 6.5% vs consensus, revenue flat YoY, and guidance for continued YoY revenue decline in Q3 2026
Risk Factors
- Prolonged IT spending slowdown could further pressure revenue growth
- Margin compression from business optimization costs and competitive pricing
- Dependence on Glob.AI platform for future growth, which is still early-stage
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302851301 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13G/A | $40.14 | awaiting T+20 | — | $45.00 (+12.11%) |
Oct 7, 2026 19d ago | SC 13G/A | $35.49 | awaiting T+20 | — | $45.00 (+26.80%) |
Sep 3, 2026 7w ago | Insider Cluster | $39.13 $35.75 | ▼ −8.64% | ▼ −9.24% | $45.00 (+15.00%) |
Aug 28, 2026 8w ago | Insider Cluster | $40.71 $33.94 | ▼ −16.63% | ▼ −16.26% | $45.00 (+10.54%) |
Aug 28, 2026 8w ago | Insider Cluster | $40.71 $33.94 | ▼ −16.63% | ▼ −16.26% | $45.00 (+10.54%) |
Aug 13, 2026 10w ago | Press Release | $37.38 $40.49 | ▼ −8.32% | ▼ −10.31% | $45.00 (−20.39%) |
US Market Status
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