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Globant Gears Up for Q2 Earnings: What's in the Offing?

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Key Takeaways

  • AI momentum, broad demand and strategic bets to support Globant's second-quarter performance.
  • AI Pods debut offers flexible, token-based access to scalable AI-powered enterprise services.
  • Google Cloud pact targets tailored AI solutions for multiple key industries.

Globant S.A. ((GLOB - Free Report) ) is slated to report second-quarter 2025 results on Aug. 14, after market close.

The Zacks Consensus Estimate for revenues is $613 million, suggesting 4.35% growth from the year-ago quarter’s reported figure. Management anticipates revenues to be at least $612 million, up 4.2% year over year with no FX impact.

The consensus estimate for earnings is pegged at $1.52 per share, indicating an increase of 0.66% from the year-ago quarter’s reported figure. The company forecasts a non-IFRS adjusted EPS of $1.52.

GLOB’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while matching and missing once each, with the average negative surprise being 0.95%. Shares of the company have lost 59.7% against the Zacks Internet- Software and Services industry’s growth of 41.4% in the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

Factors Shaping GLOB’s Q2 Results

Secular growth trends in AI-related opportunities and strong business momentum are likely to have contributed to Globant’s performance in the second quarter. In addition, growing demand across segments and geographies might have powered its top-line performance. With a decade of strategic AI investments, it is well-positioned to lead in a market expected to reach $4.3 trillion by 2035.

The rise of generative AI highlights the urgency for digital transformation among companies. With expertise in distributed teams, a proven Studio Model and Agile Pods methodology, Globant is poised to help organizations adapt and succeed. By 2028, the generative AI market is forecasted to witness a 73.5% CAGR, while total IT spending is projected to hit $7.4 trillion, with half allocated to software and services.

Globant’s AI Studios deliver scalable, industry-specific AI solutions focused on high-impact workflows and business outcomes. Backed by deep technical expertise and enterprise AI platforms, it orchestrates intelligent agents that drive measurable innovation and value. Its subscription model offers AI-powered capacity through dedicated AI Pods, combining autonomous agents with expert oversight for efficient, flexible delivery.

Globant S.A. Price and EPS Surprise

Globant S.A. Price and EPS Surprise

Globant S.A. price-eps-surprise | Globant S.A. Quote

However, GLOB is facing a tough macroeconomic environment. Since February, the risk of a U.S. recession has increased. Consumer spending is down, and trade tariffs have created uncertainty for many customers. In the United States, pipeline conversion has slowed, and growth in some Latin American countries has been weaker than expected.

As a result, management is taking decisive measures to strengthen its financial position and navigate the current environment effectively. For the remainder of the year, the focus will be on driving growth through strategic investments in AI Industry Studios and 100-squared accounts, while safeguarding margins and cash flow.

It continues to optimize its footprint and streamline infrastructure, especially through the integration of recent acquisitions. SG&A investments will be aimed at strengthening sales capabilities and go-to-market strategies, while keeping a lean organizational structure. As of the first quarter, adjusted SG&A was 18.3% of sales. It intends to lower this ratio by year-end as revenue increases.

Key Recent Developments

In April 2025, GLOB signed an agreement with Alphabet Inc.’s Google Cloud. This agreement merges its extensive AI expertise with Google Cloud’s cutting-edge infrastructure and AI tools to foster innovation and tackle some of the urgent challenges businesses encounter today, including data silos, process inefficiencies and scalability barriers. The initiative is poised to deliver tailored solutions for Media & Entertainment, Retail, Healthcare and Finance & Banking, including seamless identity management, GenAI-powered mainframe modernization, AI-driven search and archival management, and intelligent agent workflows.

In June 2025, GLOB introduced a groundbreaking approach to IT services with the launch of AI Pods—a first-of-its-kind subscription model for AI-powered services. AI Pods enable access to intelligent solutions for engineering, product definition, design and testing at scale, all under a flexible, token-based subscription system, designed to disrupt traditional IT delivery.

In July 2025, Globant upgraded its Enterprise AI platform (GEAI) to support Model Context Protocol (MCP) and Agent2Agent (A2A) Protocol, enhancing interoperability for seamless integration with other frameworks and enabling secure, scalable, collaborative AI development.

What Our Model Predicts for GLOB

Our proven model does not predict an earnings beat for GLOB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

GLOB currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.

Affirm Holdings ((AFRM - Free Report) ) presently has an Earnings ESP of +19.25% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues and earnings is pegged at $840 million and 11 cents per share. Affirm is scheduled to report fourth-quarter fiscal 2025 results on Aug. 28.

NICE ((NICE - Free Report) ) has an Earnings ESP of +0.88% and has a Zacks Rank of #3 at present.

The Zacks Consensus Estimate for revenues and earnings is pegged at $714 million and $2.99 per share. NICE is set to report second-quarter 2025 results on Aug. 14.

Analog Devices ((ADI - Free Report) ) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for revenues and earnings is pegged at $2.76 billion and $1.93 per share. Analog Devices is scheduled to report third-quarter fiscal 2025 results on Aug. 20.


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