Globant Reports 2026 Second Quarter Financial Results

Globant Reports 2026 Second Quarter Financial Results

PR Newswire

LUXEMBOURG, Aug. 13, 2026

LUXEMBOURG, Aug. 13, 2026 /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three and six months ended June 30, 2026.

"Glob.AI ARR reached $52.8 million in the second quarter, up 61% quarter-over-quarter, and we now expect no less than $110 million exiting 2026. Alongside that, Globant's revenue for Q2 reached $614.4 million and free cash flow reached $12.6 million in the quarter, compared to negative $2.9 million a year ago, capping our strongest first half of cash generation on record. Last week we opened Glob.AI to the entire market, a single platform where any enterprise can deploy AI Pods and pay on the output or consumption they receive rather than on the hours behind it. Supported by partnerships with Anthropic, Vercel and OpenAI, among others, we are changing how our services are delivered and how they are priced," explained Martín Migoya, Globant's CEO and co-founder."In the second quarter of 2026, Globant demonstrated resilient execution, generating $614.4 million in revenue—within our guided range—and delivering record free cash flow generation for the first half of the year. Expansion across our top accounts remained strong, reflecting a 6.9% year-over-year increase in our top 50 clients alongside accelerating market adoption of our higher-margin AI Pods and Glob.AI platform. To navigate broader market volatility and to align with our business model transformation needs, we proactively optimized our structure during the quarter, all while we continued executing on our share repurchase program," explained Juan Urthiague, Globant's CFO.Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release.Second Quarter 2026 Financial HighlightsRevenues were $614.4 million, remaining generally unchanged from the prior year quarter.IFRS Gross Profit Margin was 33.9% compared to 35.4% in the second quarter of 2025.Non-IFRS Adjusted Gross Profit Margin was 36.5% compared to 38.1% in the second quarter of 2025.IFRS Profit from Operations Margin was 3.2% compared to 1.0% in the second quarter of 2025.Non-IFRS Adjusted Profit from Operations Margin was 13.2% compared to 15.0% in the second quarter of 2025.IFRS Diluted EPS was $0.04 compared to $(0.05) in the second quarter of 2025.Non-IFRS Adjusted Diluted EPS was $1.40 compared to $1.53 in the second quarter of 2025.Other Financial Highlights as of and for the quarter ended June 30, 2026Cash and cash equivalents and Short-term investments were $168.8 million as of June 30, 2026.The Company invested $25.0 million during the second quarter, completing its original share repurchase program. As of June 30, 2026, the Company had $125.0 million available for repurchase under its new share repurchase authorization.Globant completed the second quarter of 2026 with 27,411 Globers, 25,632 of whom were technology, design and innovation professionals.The geographic revenue breakdown for the second quarter of 2026 was as follows: 52.8% from North America (top country: US), 20.8% from Latin America (top country: Argentina), 20.9% from Europe (top country: Spain) and 5.5% from New Markets[1] (top country: Saudi Arabia).Globant's top customer, top five customers and top ten customers for the second quarter of 2026 represented 8.9%, 21.6% and 30.6% of revenues, respectively.During the twelve months ended June 30, 2026, Globant served a total of 904 customers (with revenues over $100,000 in the last twelve months), with 331 accounts generating more than $1 million of annual revenues, compared to 339 for the same period one year ago.In terms of currencies, 63.0% of Globant's revenues for the second quarter of 2026 were denominated in US dollars.2026 Third Quarter and Full Year OutlookBased on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2026:Third quarter 2026 Revenues are estimated to be in the range of $607 million to $615 million, representing a 1.6% to 0.3% year-over-year decline. This outlook includes a positive FX impact of 25 basis points.Third quarter 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%.Third quarter 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.43 to $1.53 (assuming an average of 43.2 million diluted shares outstanding during the third quarter).Fiscal year 2026 Revenues are estimated to be in the range of $2,428 million to $2,462 million, implying a 1.1% year-over-year decline to 0.3% year-over-year revenue growth. This expected growth includes a positive FX impact of 70 basis points.Fiscal year 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%.Fiscal year 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $5.75 to $6.15 (assuming an average of 43.6 million diluted shares outstanding during 2026).Shareholder Letter, Conference Call and Webcast A shareholder letter will be available in the Investor Relations section of Globant's website.Martin Migoya, Chief Executive Officer and co-founder, Diego Tártara, Chief Technology Officer, Juan Urthiague, Chief Financial Officer, and Fernando Matzkin, Chief Revenue Officer, will discuss the results in a video conference call and a live Q&A session beginning today at 4:30 pm ET.Video conference call access information is:https://more.globant.com/F2Q26EarningsCallWebcast http://investors.globant.com/[1] Represents Asia, Oceania and the Middle East.About Globant (NYSE:GLOB)At Globant, we help organizations thrive in a digital and AI-powered future. Our industry-focused solutions combine technology and creativity to accelerate enterprise transformation and design experiences customers demand. Through digital reinvention, our subscription-based AI Pods, and Globant Enterprise AI platform, we turn challenges into measurable business results and promised savings into real impact.We have more than 27,400 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.For more information, please visit www.globant.com Non-IFRS Financial MeasuresWhile the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" or a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited. Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS Accounting Standards. Management believes these measures help illustrate underlying trends in the company's business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, business optimization costs, and the related effect on income taxes of the pre-tax adjustments. Because the company's non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry. Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of June 30, 2026 and December 31, 2025 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2026 and 2025, prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting".Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, business optimization costs, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.Forward Looking Statements In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.Additionally, while we have concluded, for the three- and six-month periods ended June 30, 2026 presented in the condensed interim consolidated statements of comprehensive income included in this press release, that our goodwill and intangible assets are not impaired, changes in economic or operating conditions impacting our estimates and assumptions could, as noted in our most recent Form 20-F, result in the impairment of our goodwill and intangible assets in future periods.Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.Globant S.A.Condensed Interim Consolidated Statements of Comprehensive Income(In thousands of U.S. dollars, except per share amounts, unaudited)Six months endedThree Months Ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025Revenues1,221,5021,225,265614,417614,180Cost of revenues (803,785)(794,394)(406,181)(396,539)Gross profit417,717430,871208,236217,641Selling, general and administrative expenses(312,749)(321,238)(154,343)(159,543)Net impairment losses on financial assets(2,486)(6,339)(1,692)(4,660)Business Optimization Costs(32,346)(47,580)(32,346)(47,580)Other operating income and expenses, net1,391———Profit from operations71,52755,71419,8555,858Finance income3,1611,9231,339978Finance expense(18,640)(20,599)(9,208)(10,972)Other financial results, net1,461861(299)(239)Financial results, net(14,018)(17,815)(8,168)(10,233)Share of results of investment in associates(51)61423Other income and expenses, net(2,436)(3,385)(7,353)(114)Profit before income tax55,02234,5204,348(4,466)Income tax(12,645)(7,749)(741)742Net income for the period42,37726,7713,607(3,724)Other comprehensive income (loss) net of income tax effectsItems that may be reclassified subsequently to profit and loss:- Exchange differences on translating foreign operations(14,539)80,377(8,896)51,288- Remeasurement on defined benefit plan553—357—- Net change in fair value on financial assets measured at FVOCI(182)(5,798)(182)(5,798)- Gains and losses on cash flow hedges2,88813,1586,5043,000Total comprehensive income for the period31,097114,5081,39044,766Net income attributable to:Owners of the Company38,74628,2521,767(2,383)Non-controlling interest3,631(1,481)1,840(1,341)Net income for the period42,37726,7713,607(3,724)Total comprehensive income for the period attributable to:Owners of the Company29,346109,57429941,850Non-controlling interest1,7514,9341,0912,916Total comprehensive income for the period31,097114,5081,39044,766Earnings per shareBasic 0.900.640.04-0.05Diluted0.890.620.04-0.05Weighted average of outstanding shares (in thousands)Basic 43,03544,17742,85844,298Diluted43,40545,42443,22844,298Globant S.A.Condensed Interim Consolidated Statements of Financial Position as of June 30, 2026 and December 31, 2025(In thousands of U.S. dollars, unaudited)June 30, 2026December 31, 2025ASSETSCurrent assetsCash and cash equivalents 163,766243,742Investments5,0496,594Trade receivables622,794577,673Other assets32,81635,117Other receivables78,56484,405Other financial assets8,8936,226Total current assets911,882953,757Non-current assetsInvestments 2,5782,489Other assets 3,1644,424Other receivables 61,14849,496Deferred tax assets99,04991,065Investment in associates1,0531,727Other financial assets 30,99029,930Property and equipment127,602137,331Intangible assets312,126345,951Right-of-use assets87,208100,542Goodwill1,595,4601,601,523Total non-current assets2,320,3782,364,478TOTAL ASSETS3,232,2603,318,235LIABILITIESCurrent liabilitiesTrade payables118,374112,590Payroll and social security taxes payable196,530203,395Borrowings19,36419,666Other financial liabilities97,811169,605Lease liabilities25,73928,511Tax liabilities20,96933,205Income tax payable14,12110,730Other liabilities1,5682,591Total current liabilities494,476580,293Non-current liabilitiesTrade payables 1,3123,684Borrowings 402,591347,040Other financial liabilities 50,17990,499Lease liabilities 70,16078,428Deferred tax liabilities26,46930,906Income tax payable 2,0771,428Payroll and social security taxes payable 2,1442,358Contingent liabilities8,92921,963Total non-current liabilities563,861576,306TOTAL LIABILITIES1,058,3371,156,599Capital and reservesIssued capital52,11252,604Additional paid-in capital1,159,0721,167,979Other reserves(102,121)(92,721)Retained earnings 1,004,485965,739Total equity attributable to owners of the Company2,113,5482,093,601Non-controlling interests60,37568,035Total equity2,173,9232,161,636TOTAL EQUITY AND LIABILITIES3,232,2603,318,235Globant S.A.Selected Cash Flow Data(In thousands of U.S. dollars, unaudited)Three Months EndedJune 30, 2026June 30, 2025Net Income for the period3,607(3,724)Non-cash adjustments, taxes and others60,97657,883Changes in working capital(34,366)(32,281)Cash flows from operating activities30,21721,878Capital expenditures(17,584)(24,735)Cash flows from investing activities(22,134)(68,763)Cash flows from financing activities(39,213)103,757Net increase/decrease in cash & cash equivalents(31,130)56,872Globant S.A.Supplemental Non-IFRS Financial Information (In thousands of U.S. dollars, unaudited)Six Months EndedThree Months EndedJune 30, 2026June 30, 2025June 30, 2026June 30, 2025Reconciliation of adjusted gross profitGross profit417,717430,871208,236217,641Depreciation and amortization expense23,73422,24112,14511,085Share-based compensation expense - Equity settled7,14713,2033,8415,513Adjusted gross profit448,598466,315224,222234,239Adjusted gross profit margin36.7 %38.1 %36.5 %38.1 %Reconciliation of selling, general and administrative expensesSelling, general and administrative expenses(312,749)(321,238)(154,343)(159,543)Depreciation and amortization expense52,57359,59426,02929,939Share-based compensation expense - Equity settled29,72927,66014,83514,275Acquisition-related charges (a)3,49512,206(922)5,639Adjusted selling, general and administrative expenses(226,952)(221,778)(114,401)(109,690)Adjusted selling, general and administrative expenses as % of revenues(18.6) %(18.1) %(18.6) %(17.9) %Reconciliation of adjusted profit from operationsProfit from operations71,52755,71419,8555,858Share-based compensation expense - Equity settled36,87640,86318,67619,788Business optimization costs (b)32,34647,58032,34647,580Acquisition-related charges (a)25,53438,4779,98218,872Adjusted profit from operations166,283182,63480,85992,098Adjusted profit from operations margin13.6 %14.9 %13.2 %15.0 %Reconciliation of net income for the periodNet income for the period38,74628,2521,767(2,383)Share-based compensation expense - Equity settled37,23440,37819,04719,359Business optimization costs (b)32,29446,45332,29446,453Acquisition-related charges (a)42,24954,26623,90626,309Tax effect of non-IFRS adjustments(25,012)(31,811)(16,665)(20,035)Adjusted net income125,511137,53860,34969,703Adjusted net income margin10.3 %11.2 %9.8 %11.3 %Calculation of adjusted diluted EPSAdjusted net income125,511137,53860,34969,703Diluted shares43,40545,42443,22845,545Adjusted diluted EPS2.893.031.401.53Acquisition-related charges include, when applicable, amortization of purchased intangible assets, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions.One-time charges for the three and six months ended June 30, 2026 and 2025, related to the Company's Business Optimization Programs initiated in April 2026 and April 2025, respectively. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature.Globant S.A.Schedule of Supplemental Information (unaudited)MetricsQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026Total Employees30,08429,02028,77328,51027,411IT Professionals28,09727,12326,90626,70225,632North America Revenues %54.153.853.853.552.8Latin America Revenues %19.719.921.120.520.8Europe Revenues %19.619.419.319.720.9New Markets Revenues %6.66.95.86.35.5USD Revenues %64.163.264.064.563.0Other Currencies Revenues %35.936.836.035.537.0Top Customer %8.68.78.58.98.9Top 5 Customers %20.320.720.521.121.6Top 10 Customers %29.329.529.430.530.6Customers Served (Last Twelve Months)*981978944943904Customers with >$1M in Revenues (Last Twelve Months)339339336333331(*) Represents customers with more than $100,000 in revenues in the last twelve months.Investor Relations Contact:Arturo Langa, Globantinvestors@globant.com+1 (877) 215-5230Media Contact:Gregorio Lascano, Globantpr@globant.com+1 (877) 215-5230