Tesla could be a $10,000 stock in a decade, says longtime bull Ron Baron
LUXEMBOURG - Globant (NYSE:GLOB) reported third-quarter earnings that slightly missed analyst expectations and provided disappointing guidance, sending shares tumbling 9% as investors reacted to the IT services company’s cautious outlook.
The Luxembourg-based digital transformation specialist reported adjusted earnings of $1.53 per share for the third quarter, just below the analyst consensus of $1.54. Revenue came in at $617.1 million, slightly above expectations of $615.32 million and representing a modest 0.4% YoY growth.
For the fourth quarter, Globant provided guidance that fell short of analyst expectations, projecting revenue of at least $605 million compared to the consensus estimate of $607 million. This forecast represents a 5.8% YoY decline. The company also expects fourth-quarter adjusted earnings of at least $1.53 per share, below the $1.54 analyst consensus.
"Globant delivered top-line results of $617.1 million, exceeding guidance while maintaining a prudent and healthy balance sheet. We successfully expanded profitability and generated $67.5 million of free cash flow during the third quarter," said Juan Urthiague, Globant’s CFO.
The company’s adjusted operating margin increased to 15.5% in the third quarter, up 50 basis points sequentially, despite currency headwinds. However, this was slightly below the 15.6% reported in the same period last year.
Globant maintained its focus on AI transformation projects, with CEO Martín Migoya highlighting the company’s "differentiated value proposition based on four pillars: our AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform."
The company ended the quarter with 29,020 employees, down from 29,998 in the same period last year. North America remained Globant’s largest market, accounting for 53.8% of revenue, followed by Latin America at 19.9% and Europe at 19.4%.
For the full fiscal year 2025, Globant expects revenue of at least $2.45 billion, representing at least 1.3% YoY growth, with an adjusted operating margin of at least 15.0%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.