Globant shares fall after weak guidance, analyst downgrades

Shares of Globant (NYSE: GLOB) fell sharply on Friday after the digital services provider reported weaker-than-expected quarterly results and lowered its full-year guidance, prompting multiple analyst downgrades.

The company posted quarterly revenue of $547.8 million, below the $555 million consensus estimate from Refinitiv, while adjusted earnings per share of $1.95 also missed expectations of $2.02. Globant cited softer demand across key client segments and ongoing margin compression as primary factors behind the underperformance.

Management reduced its full-year revenue guidance to a range of $2.25 billion to $2.30 billion, down from the prior outlook of $2.35 billion to $2.40 billion. Adjusted EBITDA margin guidance was trimmed to 18%-19% from 20%-21%, reflecting increased cost pressures and investment requirements.

Following the announcement, several analysts downgraded the stock. JPMorgan cut its rating to Neutral from Overweight, citing "heightened execution risk" and "slower-than-expected demand recovery." Barclays similarly downgraded Globant to Equal Weight, warning that "near-term visibility remains limited" amid a challenging macro backdrop.

Globant’s shares were down 10.3% at $185.20 in midday trading, extending losses from Thursday’s 7.2% decline. The stock has now fallen nearly 20% over the past month, underperforming the S&P 500’s 3% gain in the same period.

Analysts at Jefferies maintained a Hold rating but reduced their price target to $190 from $220, acknowledging that while long-term fundamentals remain intact, "short-term headwinds are materializing faster than expected."