| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 17.6x | 17.3x | Top tier | |
Growth | 44 | -1.3% | 7.1% | Around median | |
Quality | 59 | 5.5% | 4.5% | Around median | |
Safety | 76 | 1.5x | 2.6x | Top tier | |
Capital Return | 22 | 0.00% | 0.06% | Bottom tier | |
Momentum | 48 | -41.6% | -1.6% | Around median | |
Sentiment | 42 | 13 | 3 | Around median |
The floor: what the company is worth if growth stopped today
39% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Globant provides software engineering and digital transformation services to enterprises, from building products, platforms, and customer experiences to data, cloud, and integration work. Its traditional model has relied on fixed-scope or time-and-materials projects, while the Glob.AI platform and AI Pods add an output-, value-, or consumption-based model; pricing includes token consumption and human oversight. Data and AI Studio represented approximately 11% of sales in Q2 FY2026, while AI Pods revenue accounted for about 2% of total revenue.
Q2 FY2026 revenue was approximately $614.4 million, up 1.2% sequentially and slightly year over year. Adjusted net income was $60.3 million, with an adjusted net margin of 9.8% and adjusted diluted EPS of $1.40, while adjusted gross margin was 36.5% and adjusted operating margin was 13.2%, below the company’s target range. Geographically, Europe grew 6.8% and Latin America 5.9% year over year, while North America contracted 2.4% and New Markets contracted 17.7%.
In FY2025, revenue increased to $2.5 billion from $2.4 billion in FY2024, but gross profit declined to $859.3 million from $863.4 million, and net income fell to $104.0 million from $169.0 million. EPS also declined to $2.29 from $3.72, showing that sales growth did not translate into earnings growth. Based on calculations from EDGAR data, gross margin was approximately 34.4% and net margin approximately 4.2% in FY2025.
The average analyst price target is $44.6, within a wide range of $33 to $70, with a neutral consensus; the average is approximately 38% below the 52-week high of $72.10 and approximately 62% above the low of $27.56. No P/E ratio is available in the data, making it difficult to anchor the valuation to a reliable earnings multiple, while the decline in FY2025 EPS to $2.29 and the reduction in the FY2026 outlook explain part of the rerating. Conversely, the bullish scenario is based on Glob.AI growth and its higher margins, but the Wedbush downgrade and the wide range of analyst targets confirm that the timing of this growth’s impact on group earnings remains disputed.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Glob.AI is the platform that Globant opened to the market in August 2026, while AI Pods are the service units that operate on it through workflows for AI agents under the supervision of the company’s experts. Work is priced based on output, value, or consumption rather than labor hours, and the price includes consumed tokens and human oversight. The platform’s annual recurring revenue reached $52.8 million in June 2026, with a target of at least $110 million by the end of FY2026.
Revenue was $614.4 million, up 1.2% sequentially and slightly year over year. Adjusted net income was $60.3 million, adjusted net margin was 9.8%, and adjusted diluted EPS was $1.40. Adjusted gross margin was 36.5% and adjusted operating margin was 13.2%, while Data and AI Studio represented approximately 11% of sales.
The company lowered its revenue range to $2.428–$2.462 billion from $2.462–$2.508 billion and set its Q3 FY2026 revenue range at $607–$615 million. Management attributed most of the revision to weakness in New Markets, particularly project delays, and added an approximately $10 million impact related to a slowdown among some travel and hospitality clients. The outlook also assumed that lengthy decision cycles in discretionary spending would persist, with the midpoint of the annual outlook at $2.445 billion.
Automated analysis for informational purposes only — not investment advice.
Management says AI Pods gross margins are approximately 10 percentage points higher than those of the traditional delivery model and that their productivity is more than 30% higher. However, they represented only about 2% of Q2 FY2026 revenue, and the company expects them to approach 4% on a run-rate basis by the end of FY2026. Globant expects an adjusted operating margin of 13.5%–14.5% for FY2026 after recording a $32.3 million business optimization charge in Q2 and expecting an additional $20–$25 million in Q3.
AI Pods adoption reached approximately 45 clients and 45% of Globant’s top 20 accounts in Q2 FY2026. FIFA uses these units to expand its digital ecosystem, and Globant extended its work with British Airways after launching its new mobile application in June 2026. It is also working on an agentic banking project for a large financial institution in the Gulf. Technology partnerships include Anthropic, OpenAI, Vercel, NVIDIA, Salesforce, and MuleSoft, with Claude units in production and a joint opportunity pipeline involving financial institutions, airlines, and e-commerce companies.
Globant ended Q2 FY2026 with $168.8 million in cash and short-term investments and net debt of $253.1 million. Free cash flow was $12.6 million in the quarter and $48.7 million in the first half of FY2026, a company record. The company also activated a program authorized by the board in May 2026 to repurchase up to $125 million of shares over six quarters, alongside continued funding for the development of Glob.AI and AI Pods.