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Investing.com -- Globant (NYSE:GLOB) shares tumbled 24% after the digital technology solutions provider reported first-quarter earnings that fell short of analyst expectations and issued disappointing guidance for the upcoming quarter and full year.
The company posted adjusted earnings per share of $1.50 for the first quarter, missing the analyst consensus of $1.60. Revenue came in at $611.1 million, up 7% YoY but below the $624.97 million analysts had projected.
Globant’s outlook also disappointed investors. For the second quarter, the company expects revenue of at least $612 million and adjusted EPS of at least $1.52, both below consensus estimates of $641.5 million and $1.65 respectively. Full-year 2025 guidance was similarly weak, with revenue projected at $2.464 billion and adjusted EPS at $6.10, compared to analyst expectations of $2.636 billion and $6.82.
CEO Martín Migoya attempted to strike an optimistic tone, stating, "Globant’s spirit of building and reinvention is stronger than ever. We are largely focused on AI-related opportunities, and assisting our clients in transforming their respective businesses and leveraging technology to drive growth and competitive advantages."
However, CFO Juan Urthiague acknowledged the challenging environment, noting, "Moving forward, while we must navigate the uncertainties of the current global economic environment, we will continue to be laser focused on margins, cash flow and capital allocation."
The company reported serving 1,004 customers with revenues over $100,000 in the last twelve months, with 341 accounts generating more than $1 million in annual revenues, up from 318 in the same period last year.
Despite the growth in high-value customers, Globant’s significant earnings miss and weak guidance led to the sharp stock decline as investors reassessed the company’s near-term growth prospects in a difficult macroeconomic climate.
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