Business
Globant Reports 2026 Second Quarter Financial Results
Globant Reports 2026 Second Quarter Financial
About this update from Globant S.a.
LUXEMBOURG , Aug. 13, 2026 /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three and six months ended June 30, 2026. "Glob.AI ARR reached $52.8 million in the second quarter, up 61% quarter-over-quarter, and we now expect no less than $110 million exiting 2026. Alongside that, Globant's revenue for Q2 reached $614.4 million and free cash flow reached $12.6 million in the quarter, compared to negative $2.9 million a year ago, capping our strongest first half of cash generation on record. Last week we opened Glob.AI to the entire market, a single platform where any enterprise can deploy AI Pods and pay on the output or consumption they receive rather than on the hours behind it. Supported by partnerships with Anthropic, Vercel and OpenAI, among others, we are changing how our services are delivered and how they are priced," explained Martín Migoya, Globant's CEO and co-founder. "In the second quarter of 2026, Globant demonstrated resilient execution, generating $614.4 million in revenue—within our guided range—and delivering record free cash flow generation for the first half of the year. Expansion across our top accounts remained strong, reflecting a 6.9% year-over-year increase in our top 50 clients alongside accelerating market adoption of our higher-margin AI Pods and Glob.AI platform. To navigate broader market volatility and to align with our business model transformation needs, we proactively optimized our structure during the quarter, all while we continued executing on our share repurchase program," explained Juan Urthiague, Globant's CFO. Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release. Second Quarter 2026 Financial Highlights Revenues were $614.4 million, remaining generally unchanged from the prior year quarter. IFRS Gross Profit Margin was 33.9% compared to 35.4% in the second quarter of 2025. Non-IFRS Adjusted Gross Profit Margin was 36.5% compared to 38.1% in the second quarter of 2025. IFRS Profit from Operations Margin was 3.2% compared to 1.0% in the second quarter of 2025. Non-IFRS Adjusted Profit from Operations Margin was 13.2% compared to 15.0% in the second quarter of 2025. IFRS Diluted EPS was $0.04 compared to $(0.05) in the second quarter of 2025. Non-IFRS Adjusted Diluted EPS was $1.40 compared to $1.53 in the second quarter of 2025. Other Financial Highlights as of and for the quarter ended June 30, 2026 Cash and cash equivalents and Short-term investments were $168.8 million as of June 30, 2026. The Company invested $25.0 million during the second quarter, completing its original share repurchase program. As of June 30, 2026, the Company had $125.0 million available for repurchase under its new share repurchase authorization. Globant completed the second quarter of 2026 with 27,411 Globers, 25,632 of whom were technology, design and innovation professionals. The geographic revenue breakdown for the second quarter of 2026 was as follows: 52.8% from North America (top country: US), 20.8% from Latin America (top country: Argentina), 20.9% from Europe (top country: Spain) and 5.5% from New Markets [1] (top country: Saudi Arabia). Globant's top customer, top five customers and top ten customers for the second quarter of 2026 represented 8.9%, 21.6% and 30.6% of revenues, respectively. During the twelve months ended June 30, 2026, Globant served a total of 904 customers (with revenues over $100,000 in the last twelve months), with 331 accounts generating more than $1 million of annual revenues, compared to 339 for the same period one year ago. In terms of currencies, 63.0% of Globant's revenues for the second quarter of 2026 were denominated in US dollars. 2026 Third Quarter and Full Year Outlook Based on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2026: Third quarter 2026 Revenues are estimated to be in the range of $607 million to $615 million, representing a 1.6% to 0.3% year-over-year decline. This outlook includes a positive FX impact of 25 basis points. Third quarter 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%. Third quarter 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.43 to $1.53 (assuming an average of 43.2 million diluted shares outstanding during the third quarter). Fiscal year 2026 Revenues are estimated to be in the range of $2,428 million to $2,462 million, implying a 1.1% year-over-year decline to 0.3% year-over-year revenue growth. This expected growth includes a positive FX impact of 70 basis points. Fiscal year 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%. Fiscal year 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $5.75 to $6.15 (assuming an average of 43.6 million diluted shares outstanding during 2026). Shareholder Letter, Conference Call and Webcast A shareholder letter will be available in the Investor Relations section of Globant's website. Martin Migoya, Chief Executive Officer and co-founder, Diego Tártara, Chief Technology Officer, Juan Urthiague, Chief Financial Officer, and Fernando Matzkin, Chief Revenue Officer, will discuss the results in a video conference call and a live Q&A session beginning today at 4:30 pm ET. Video conference call access information is: https://more.globant.com/F2Q26EarningsCall Webcast http://investors.globant.com/ [1] Represents Asia, Oceania and the Middle East. About Globant (NYSE:GLOB) At Globant, we help organizations thrive in a digital and AI-powered future. Our industry-focused solutions combine technology and creativity to accelerate enterprise transformation and design experiences customers demand. Through digital reinvention, our subscription-based AI Pods, and Globant Enterprise AI platform, we turn challenges into measurable business results and promised savings into real impact. We have more than 27,400 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others. We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord. For more information, please visit www.globant.com Non-IFRS Financial Measures While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" or a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited. Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS Accounting Standards. Management believes these measures help illustrate underlying trends in the company's business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, business optimization costs, and the related effect on income taxes of the pre-tax adjustments. Because the company's non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry. Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of June 30, 2026 and December 31, 2025 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2026 and 2025, prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, business optimization costs, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period. Forward Looking Statements In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K. Additionally, while we have concluded, for the three- and six-month periods ended June 30, 2026 presented in the condensed interim consolidated statements of comprehensive income included in this press release, that our goodwill and intangible assets are not impaired, changes in economic or operating conditions impacting our estimates and assumptions could, as noted in our most recent Form 20-F, result in the impairment of our goodwill and intangible assets in future periods. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise. Globant S.A. Condensed Interim Consolidated Statements of Comprehensive Income (In thousands of U.S. dollars, except per share amounts, unaudited) Six months ended Three Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues 1,221,502 1,225,265 614,417 614,180 Cost of revenues (803,785) (794,394) (406,181) (396,539) Gross profit 417,717 430,871 208,236 217,641 Selling, general and administrative expenses (312,749) (321,238) (154,343) (159,543) Net impairment losses on financial assets (2,486) (6,339) (1,692) (4,660) Business Optimization Costs (32,346) (47,580) (32,346) (47,580) Other operating income and expenses, net 1,391 — — — Profit from operations 71,527 55,714 19,855 5,858 Finance income 3,161 1,923 1,339 978 Finance expense (18,640) (20,599) (9,208) (10,972) Other financial results, net 1,461 861 (299) (239) Financial results, net (14,018) (17,815) (8,168) (10,233) Share of results of investment in associates (51) 6 14 23 Other income and expenses, net (2,436) (3,385) (7,353) (114) Profit before income tax 55,022 34,520 4,348 (4,466) Income tax (12,645) (7,749) (741) 742 Net income for the period 42,377 26,771 3,607 (3,724) Other comprehensive income (loss) net of income tax effects Items that may be reclassified subsequently to profit and loss: - Exchange differences on translating foreign operations (14,539) 80,377 (8,896) 51,288 - Remeasurement on defined benefit plan 553 — 357 — - Net change in fair value on financial assets measured at FVOCI (182) (5,798) (182) (5,798) - Gains and losses on cash flow hedges 2,888 13,158 6,504 3,000 Total comprehensive income for the period 31,097 114,508 1,390 44,766 Net income attributable to: Owners of the Company 38,746 28,252 1,767 (2,383) Non-controlling interest 3,631 (1,481) 1,840 (1,341) Net income for the period 42,377 26,771 3,607 (3,724) Total comprehensive income for the period attributable to: Owners of the Company 29,346 109,574 299 41,850 Non-controlling interest 1,751 4,934 1,091 2,916 Total comprehensive income for the period 31,097 114,508 1,390 44,766 Earnings per share Basic 0.90 0.64 0.04 -0.05 Diluted 0.89 0.62 0.04 -0.05 Weighted average of outstanding shares (in thousands) Basic 43,035 44,177 42,858 44,298 Diluted 43,405 45,424 43,228 44,298 Globant S.A. Condensed Interim Consolidated Statements of Financial Position as of June 30, 2026 and December 31, 2025 (In thousands of U.S. dollars, unaudited) June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents 163,766 243,742 Investments 5,049 6,594 Trade receivables 622,794 577,673 Other assets 32,816 35,117 Other receivables 78,564 84,405 Other financial assets 8,893 6,226 Total current assets 911,882 953,757 Non-current assets Investments 2,578 2,489 Other assets 3,164 4,424 Other receivables 61,148 49,496 Deferred tax assets 99,049 91,065 Investment in associates 1,053 1,727 Other financial assets 30,990 29,930 Property and equipment 127,602 137,331 Intangible assets 312,126 345,951 Right-of-use assets 87,208 100,542 Goodwill 1,595,460 1,601,523 Total non-current assets 2,320,378 2,364,478 TOTAL ASSETS 3,232,260 3,318,235 LIABILITIES Current liabilities Trade payables 118,374 112,590 Payroll and social security taxes payable 196,530 203,395 Borrowings 19,364 19,666 Other financial liabilities 97,811 169,605 Lease liabilities 25,739 28,511 Tax liabilities 20,969 33,205 Income tax payable 14,121 10,730 Other liabilities 1,568 2,591 Total current liabilities 494,476 580,293 Non-current liabilities Trade payables 1,312 3,684 Borrowings 402,591 347,040 Other financial liabilities 50,179 90,499 Lease liabilities 70,160 78,428 Deferred tax liabilities 26,469 30,906 Income tax payable 2,077 1,428 Payroll and social security taxes payable 2,144 2,358 Contingent liabilities 8,929 21,963 Total non-current liabilities 563,861 576,306 TOTAL LIABILITIES 1,058,337 1,156,599 Capital and reserves Issued capital 52,112 52,604 Additional paid-in capital 1,159,072 1,167,979 Other reserves (102,121) (92,721) Retained earnings 1,004,485 965,739 Total equity attributable to owners of the Company 2,113,548 2,093,601 Non-controlling interests 60,375 68,035 Total equity 2,173,923 2,161,636 TOTAL EQUITY AND LIABILITIES 3,232,260 3,318,235 Globant S.A. Selected Cash Flow Data (In thousands of U.S. dollars, unaudited) Three Months Ended June 30, 2026 June 30, 2025 Net Income for the period 3,607 (3,724) Non-cash adjustments, taxes and others 60,976 57,883 Changes in working capital (34,366) (32,281) Cash flows from operating activities 30,217 21,878 Capital expenditures (17,584) (24,735) Cash flows from investing activities (22,134) (68,763) Cash flows from financing activities (39,213) 103,757 Net increase/decrease in cash & cash equivalents (31,130) 56,872 Globant S.A. Supplemental Non-IFRS Financial Information (In thousands of U.S. dollars, unaudited) Six Months Ended Three Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Reconciliation of adjusted gross profit Gross profit 417,717 430,871 208,236 217,641 Depreciation and amortization expense 23,734 22,241 12,145 11,085 Share-based compensation expense - Equity settled 7,147 13,203 3,841 5,513 Adjusted gross profit 448,598 466,315 224,222 234,239 Adjusted gross profit margin 36.7 % 38.1 % 36.5 % 38.1 % Reconciliation of selling, general and administrative expenses Selling, general and administrative expenses (312,749) (321,238) (154,343) (159,543) Depreciation and amortization expense 52,573 59,594 26,029 29,939 Share-based compensation expense - Equity settled 29,729 27,660 14,835 14,275 Acquisition-related charges (a) 3,495 12,206 (922) 5,639 Adjusted selling, general and administrative expenses (226,952) (221,778) (114,401) (109,690) Adjusted selling, general and administrative expenses as % of revenues (18.6) % (18.1) % (18.6) % (17.9) % Reconciliation of adjusted profit from operations Profit from operations 71,527 55,714 19,855 5,858 Share-based compensation expense - Equity settled 36,876 40,863 18,676 19,788 Business optimization costs (b) 32,346 47,580 32,346 47,580 Acquisition-related charges (a) 25,534 38,477 9,982 18,872 Adjusted profit from operations 166,283 182,634 80,859 92,098 Adjusted profit from operations margin 13.6 % 14.9 % 13.2 % 15.0 % Reconciliation of net income for the period Net income for the period 38,746 28,252 1,767 (2,383) Share-based compensation expense - Equity settled 37,234 40,378 19,047 19,359 Business optimization costs (b) 32,294 46,453 32,294 46,453 Acquisition-related charges (a) 42,249 54,266 23,906 26,309 Tax effect of non-IFRS adjustments (25,012) (31,811) (16,665) (20,035) Adjusted net income 125,511 137,538 60,349 69,703 Adjusted net income margin 10.3 % 11.2 % 9.8 % 11.3 % Calculation of adjusted diluted EPS Adjusted net income 125,511 137,538 60,349 69,703 Diluted shares 43,405 45,424 43,228 45,545 Adjusted diluted EPS 2.89 3.03 1.40 1.53 Acquisition-related charges include, when applicable, amortization of purchased intangible assets, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions. One-time charges for the three and six months ended June 30, 2026 and 2025, related to the Company's Business Optimization Programs initiated in April 2026 and April 2025, respectively. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature. Globant S.A. Schedule of Supplemental Information (unaudited) Metrics Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total Employees 30,084 29,020 28,773 28,510 27,411 IT Professionals 28,097 27,123 26,906 26,702 25,632 North America Revenues % 54.1 53.8 53.8 53.5 52.8 Latin America Revenues % 19.7 19.9 21.1 20.5 20.8 Europe Revenues % 19.6 19.4 19.3 19.7 20.9 New Markets Revenues % 6.6 6.9 5.8 6.3 5.5 USD Revenues % 64.1 63.2 64.0 64.5 63.0 Other Currencies Revenues % 35.9 36.8 36.0 35.5 37.0 Top Customer % 8.6 8.7 8.5 8.9 8.9 Top 5 Customers % 20.3 20.7 20.5 21.1 21.6 Top 10 Customers % 29.3 29.5 29.4 30.5 30.6 Customers Served (Last Twelve Months)* 981 978 944 943 904 Customers with >$1M in Revenues (Last Twelve Months) 339 339 336 333 331 (*) Represents customers with more than $100,000 in revenues in the last twelve months. Investor Relations Contact: Arturo Langa, Globant [email protected] +1 (877) 215-5230 Media Contact: Gregorio Lascano, Globant [email protected] +1 (877) 215-5230 View original content to download multimedia: https://www.prnewswire.com/news-releases/globant-reports-2026-second-quarter-financial-results-302851301.html SOURCE Globant