Globant Q2 Earnings & Revenues Beat Estimates, Stock Down

Globant S.A. GLOB reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of $1.52. It reported earnings of $1.51 per share in the prior-year quarter.Revenues in the quarter totaled $614.2 million, beating the Zacks Consensus Estimate of $613 million. The top line rose 4.5% year over year.While the macroeconomic environment has led to longer sales cycles, the company’s team remains sharply focused on converting this strong pipeline into signed work in the coming quarters. With several large opportunities in healthcare, financial services, CPG and gaming, GLOB is well-positioned for meaningful conversions in the months ahead, further strengthening its commitment to high-value clients and driving strategic impact.With GenAI adoption growing quickly and the AI ecosystem becoming more complex, the company’s market opportunity is expanding. Its pipeline hit a record $3.7 billion, up 25% from last year. Management had projected second-quarter revenues to be at least $612 million, representing a 4.2% year-over-year increase with no foreign exchange impact.In response to the lowered 2025 outlook, GLOB’s shares declined almost 15% in the trading on Friday. Shares of the company have lost 67.1% against the Zacks Internet- Software and Services industry’s growth of 37.1% in the past year.Image Source: Zacks Investment ResearchFor the quarter ended June 30, 2025, GLOB catered to 981 customers. For the same period, the company had 339 clients that brought in more than $1 million in annual revenues, up from 329 last year.Its top customer, top five customers and top 10 customers accounted for 8.6%, 20.3% and 29.3% of revenues, respectively.GLOB’s Q2 Segmental DetailsRevenues from Media and Entertainment (19.9% of net sales) decreased 8.3% year over year to $122 million.Technology & Telecommunications revenues (9.1%) fell 9.8% year over year to $56.2 million.Travel & Hospitality revenues (13%) rose 24.6% year over year to $79.8 million.Consumer, Retail & Manufacturing (18%) grew 1.5% year over year to $110.8 million.Professional Services (10.3%) were down 0.8% from the prior-year quarter to $63.3 million.Banks, Financial Services and Insurance (20.6%) were up 21% year over year to $126.6 million.Healthcare revenues (7.1%) increased 3.5% year over year to $43.8 million.Revenues from Other Verticals (1.9%) totaled $11.8 million, up 43.3% year over year.Globant S.A. Price, Consensus and EPS Surprise Globant S.A. price-consensus-eps-surprise-chart | Globant S.A. QuoteRegarding region-wise revenue distribution, North America led with 54.1% of revenues. Latin America contributed 19.7% and is showing a strong recovery, setting new booking records. Europe accounted for 19.6%. New Markets represented 6.6% of revenues, delivering outstanding growth of 84% year over year.Other DetailsNon-IFRS adjusted gross margin was flat year over year at 38.1%.Non-IFRS adjusted profit from operations margin was 15%, down from 15.1% in the prior-year quarter.Adjusted net income for the period was $69.7 million, up 4.2% year over year.Cash Flow & LiquidityAs of June 30, 2025, GLOB had cash, cash equivalents and short-term investments of $174.2 million compared with $120.2 million as of March 31, 2025.During the quarter, it generated $21.9 million in cash from operating activities compared with $10.2 million in the previous year.GLOB’s Q3 & 2025 GuidanceFor the third quarter of 2025, Globant expects revenues of at least $615 million, reflecting 0.1% year-over-year growth, including a favorable FX impact of 50 basis points.The company anticipates a non-IFRS adjusted operating margin of at least 15% and non-IFRS adjusted diluted EPS to be at least $1.53.For 2025, GLOB expects revenues of at least $2,445.0 million, representing 1.2% year-over-year growth, including a positive forex impact of 25 basis points. Earlier, the company projected $2,464.0 million in revenues for 2025.Globant expects a non-IFRS adjusted operating margin of at least 15%, and non-IFRS adjusted diluted EPS of at least $6.12.GLOB’s Zacks RankGLOB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other CompaniesNebius Group N.V. NBIS reported a second-quarter 2025 adjusted net loss of $91.5 million, 49% wider than a loss of $61.6 million incurred a year ago.The company’s revenues skyrocketed 625% year over year to $105.1 million. The increase in sales was primarily driven by strong performance in its core business and excellent execution by the TripleTen team.Shares of NBIS surged 59.7% in the past year.Tyler Technologies, Inc. TYL reported better-than-expected second-quarter 2025 results. The company reported second-quarter non-GAAP earnings of $2.91 per share, which beat the Zacks Consensus Estimate by 4.7% and increased 21.3% year over year.Tyler Technologies’ second-quarter revenues increased 10.2% year over year to $596.1 million. The top line topped the Zacks Consensus Estimate of $586.2 million by 1.7%.Shares of TYL declined 1.3% in the past year.Red Violet, Inc. RDVT came out with quarterly earnings of 28 cents per share, in line with the Zacks Consensus Estimate. This compares to earnings of 28 cents per share a year ago.Red Violet posted revenues of $21.8 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $19.1 million.Shares of RDVT have gained 52.2% in the past year.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Globant S.A. (GLOB): Free Stock Analysis Report Tyler Technologies, Inc. (TYL): Free Stock Analysis Report Red Violet, Inc. (RDVT): Free Stock Analysis Report Nebius Group N.V. (NBIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks