Globant cuts 2026 forecast despite AI pod growth in Q2

Globant S.A. trimmed its 2026 revenue guidance on Thursday, citing slower-than-expected demand despite traction in its AI-focused service pods during the second quarter.

The Buenos Aires-based IT services provider reported second-quarter revenue of $562.5 million, up 11% year-over-year and in line with analyst expectations. Adjusted earnings per share rose to $2.15 from $1.82 in the same period last year, also meeting forecasts. Globant attributed its Q2 performance to strong demand for artificial intelligence and cloud services, which drove a 20% increase in AI-related revenue.

Despite the quarterly beat, Globant reduced its full-year 2026 revenue forecast to a range of $2.35 billion to $2.45 billion, down from its prior guidance of $2.5 billion to $2.6 billion. The company cited macroeconomic headwinds, including cautious enterprise spending and currency volatility, as key factors behind the revision. Globant maintained its 2026 adjusted EBITDA margin target of 16% to 18%.

Chief Executive Martin Migoya highlighted the company’s progress in AI integration, noting that AI pods—dedicated teams focused on generative AI solutions—now account for 12% of total revenue, up from 8% in the prior quarter. However, he acknowledged that broader economic uncertainty had tempered client budgets for large-scale digital transformation projects.

Globant’s stock fell 3.2% in after-hours trading following the guidance cut, extending a decline from its midday close of $185.40. Analysts at JPMorgan and Morgan Stanley reiterated neutral ratings on the stock, citing valuation concerns despite the company’s AI momentum.

The company expects Q3 revenue to reach $570 million to $590 million, with adjusted EPS projected between $2.20 and $2.35.