Globant Q2 2026 AI revenue jumps as legacy business slows

Globant reported a mixed performance for the second quarter of 2026, with revenue from AI-focused 'pods' accelerating sharply while its core business faced sustained pressure.

The company’s AI segment, which includes specialized units delivering generative AI and automation solutions, generated $187 million in Q2 2026, up 45% year-over-year. This surge contrasted with a 12% decline in revenue from traditional IT services, which totaled $312 million for the quarter. Overall, Globant’s consolidated revenue fell 3% to $589 million, reflecting the divergent trends between its legacy and emerging businesses.

Chief Executive Martin Migoya attributed the AI growth to increased enterprise adoption of generative AI tools and demand for scalable automation solutions. 'Clients are prioritizing AI-driven efficiency gains over cost-cutting in traditional outsourcing,' Migoya stated in prepared remarks. However, he acknowledged that macroeconomic uncertainty and delayed IT spending decisions weighed on the core services division.

Globant maintained its full-year revenue guidance of $2.4 billion to $2.5 billion, signaling confidence in AI’s long-term trajectory despite near-term headwinds. The company also reaffirmed its 2026 adjusted EBITDA margin target of 16% to 17%, supported by cost discipline in non-AI operations.

Analysts at JPMorgan noted that while AI revenue growth is encouraging, the decline in traditional services could pressure margins if the trend persists. 'The sustainability of AI growth will depend on execution and client retention,' the bank wrote in a client note.

Shares of Globant were down 2.1% in pre-market trading following the release, as investors weighed the mixed results against the company’s strategic pivot toward AI.