Research Reports

Prepared Highlights

Q1 2026 revenue of $607.1M, above the high end of guidance, a 0.7% decrease YoY on a reported basis (CEO, CFO). FX tailwind of 200 bps (CFO).
Top 50 clients grew 5.2% YoY; top 10 grew 4%; 2–5 cohort grew 8.2%, all above company average (CFO).
Adjusted gross profit margin 37%; adjusted operating margin 14.1%; SG&A 18.5% of revenue (CFO).
AI Pods annual recurring revenue reached $32.8M as of March, with strong growth vs Q4; pipeline stands at $352M (CEO).
AI Pods gross margins run “materially above” blended company gross margin (CEO). AI Pods model in 40% of top 20 accounts, up from 30% last quarter (CEO).
Data & AI studio growing north of 25% YoY; engineering studio in mid-single digits (CEO).
Revenue per Globant run-rate north of $90,000, up 8% YoY (CEO).
Free cash flow $36.1M in Q1 vs negative $5.7M in Q1 2025; FCF/adjusted net income ratio >55% (CFO). Cash and short-term investments $200.5M; net debt $161.2M (CFO).
Q1 adjusted net income $65.2M (10.7% margin); adjusted diluted EPS $1.50 (CFO).
Original share repurchase program completed in Q2; new program authorized: up to $125M over 6 quarters (~7.5% of market cap) (CEO).
Official guidance: Q2 2026 revenue $610M–$616M (midpoint implies 100 bps FX tailwind); non-IFRS adjusted op margin 14%–15%; adjusted diluted EPS $1.45–$1.55 (CFO). Full-year 2026 revenue $2.462B–$2.508B (0.3%–2.2% YoY growth, ~100 bps FX tailwind); adjusted op margin 14%–15%; adjusted diluted EPS $6.10–$6.50 (CFO).
Mgmt quotes:
- “We are standing at the beginning of the most important transition the technology services industry has lived through.” (CEO)
- “Enterprises do not need just models. They need AI-native services delivered by AI agents, supervised by humans driving their agentic transformation.” (CEO)
- “AI Pods is a young, fast compounding practice... the percentage growth rates we are seeing at this stage reflect early base dynamics that will naturally moderate as scale builds.” (CEO)
- “We turn AI from a tool into a delivery model, and we package the IP we generate into assets that our clients can deploy.” (CTO)
- “This is the first time Globant has generated free cash flow in the first quarter since 2019... We expect to continue generating strong organic free cash flow for the full year 2026.” (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Q1 2026 Revenue	$607.1M	CFO; reported, -0.7% YoY
YoY Revenue Growth (top 50 clients)	5.2%	CFO
Adjusted Gross Profit Margin	37%	CFO
Adjusted Operating Margin	14.1%	CFO
Free Cash Flow	$36.1M	CFO; Q1 2026
Net Cash / (Debt)	$161.2M net debt	CFO; $200.5M cash, short-term investments
AI Pods ARR	$32.8M	CEO; as of March 2026
AI Pods Pipeline	$352M	CEO
Revenue per Globant	>$90,000 run-rate	CEO; +8% YoY
Q1 Adjusted Diluted EPS	$1.50	CFO
Q2 2026 Revenue Guidance	$610M–$616M	CFO
Full-Year 2026 Revenue Guidance	$2.462B–$2.508B	CFO; 0.3%–2.2% YoY growth
Full-Year 2026 Adjusted Diluted EPS Guidance	$6.10–$6.50	CFO

Q&A Batch (1-5 of 8)

Q1 — Bryan Bergin

Topic: Demand conversion and pipeline health; FX margin headwinds and AI Pod margin outlook
Key points:
- Pipeline is "very healthy"; conversion is "quite good"; large deals from last year and Q1 gaining traction.
- Concerns: Middle East situation, airline fuel prices impacting some trips; but overall "positive environment" with long-term deals returning.
- Growth on main accounts (100 square accounts) is "way above" full-company growth.
- Q1 FX headwind on gross margin = ~1 percentage point from Colombia, Brazil, Mexico; same assumption for rest of year, offset by utilization improvements.
- AI Pods: expected run rate $60M–$100M toward year-end; still "small part of business," but model shows "better margins overall relative to other delivery models."
Mgmt stance: Bullish — pipeline healthy, large deals closing, top accounts growing faster; FX managed through efficiency.

Q2 — Margaret Nolan

Topic: AI Pod margin sustainability; forward-deployed engineers and revenue per head
Key points:
- AI Pods margins expected to stay higher vs. traditional models; scale improves agent efficiency and token usage, offsetting potential pricing pressure.
- Revenue per head trending up for many years; forward-deployed engineers are senior-tier engineers mapping data/architecture — "top-notch, most senior-tier."
- Forward-deployed engineers have existed for years (previously called differently) now act as agents of transformation using any platform.
- Next generation: changing full processes that were previously impossible to automate.
Mgmt stance: Bullish — AI Pods margin sustainable via scaling and agent learning; forward-deployed engineers drive revenue per head uplift.

Q3 — Bryan Keane

Topic: Larger client growth drivers; Middle East exposure and guidance assumptions
Key points:
- Top 10 clients grew ~4% quarter-over-quarter because of "100 square" strategy; growth much higher than rest of client base.
- Work on top clients focuses on AI-infused projects; Disney showing "nice recovery" in 2025 vs 2025 (sic — likely vs 2025), with CEO Josh D'Amaro focusing on guest experience via Disney+.
- "New markets" account for ~6% of revenues; Middle East is ~2/3 of that (~4% of total).
- Guidance midpoint assumes Middle East continues "more or less the way they are"; low end implies "significant deterioration" of that business, not seen in current numbers.
- Pipeline in Middle East is "very solid"; deals closing and starting.
Mgmt stance: Neutral-bullish on growth from large clients; cautious on Middle East (built-in lower-end cushion, but no current deterioration).

Q4 — Arvind Ramnani

Topic: Competition from Anthropic/OpenAI services arms; Palantir relationship; guidance conservatism
Key points:
- Market is "extremely large" ($2T for technology only); many new competitors daily.
- Anthropic/OpenAI cannot offer model independence or unbiased advice; Globant has 23 years of relationships, MSAs, trust — "massive support" to long-term business.
- These companies seen as both competitors and partners; work often routed through partner networks (e.g., Amazon, Google, Microsoft models).
- Palantir is a partner; Globant cooperates on specific situations; commitment is to best solution for customer, regardless of product.
- Guidance reaffirmed (not raised) because of Middle East uncertainty; "nothing to gain from taking too much risk."
Mgmt stance: Bullish on market size and competitive position (independent, multi-model); cautious on guidance (Middle East risk).

Q5 — James Friedman

Topic: Globant GUT strategy consulting role; Latin America macro conditions
Key points:
- GUT is an entry point to customers (marketing + technology + AI); generates "incremental revenue downstream" as a door for other innovations.
- Latin America is "more stable scenario"; Argentina driving most growth in region, followed by Brazil.
Mgmt stance: Bullish on GUT as growth vehicle; neutral on LatAm macro (stable vs. prior years).

Q&A Batch (6-8 of 8)

Q6 — Yu Lee

Topic: Bookings momentum and back-half ramp confidence
Key points:
- Q1 bookings exceeded initial guidance; full-year guidance reaffirmed despite stress in a new market region.
- Back-half ramp driven by: (1) higher number of days in H2; (2) 4 large contracts already signed and scaling (professional services company, big tech company where GLOB became preferred vendor, gaming company mentioned last quarter, PE-backed company).
- No big changes in bookings trend from January through May.
Mgmt stance: Neutral – bookings are sufficient to maintain guidance, but no acceleration noted; H2 relies on specific scaling contracts and calendar days.

Q7 — Sean Kennedy

Topic: AI Pods customer feedback and benefits
Key points:
- AI Pods data comes from top accounts; feedback positive on both efficiency and quality of outcome.
- Key benefits: process baked into tool (resilient, holds knowledge); token consumption reduced (well-executed task uses 1/3 to 1/4 or fewer tokens vs. reprompting/corrections).
- No client has gone back from AI Pods; revenue reported only after testing/POC phase.
- AI Pods are enterprise-ready (scalable, secure, documented), charged per consumption/output, not per hour.
Mgmt stance: Bullish – strong adoption evidence (zero reversions), clear efficiency gains, and a differentiated AI-native service model.

Q8 — Gustavo Farias

Topic: Capital allocation (buybacks vs. M&A) and fixed-price contracts
Key points:
- Buyback is at management’s disposal; GLOB stock seen as undervalued, but M&A remains an option if highly strategic.
- Firepower exists for M&A, but current valuation mismatch (GLOB vs. private companies) makes buybacks more attractive.
- Fixed-price contracts as % of revenue stable vs. last quarter; market pushes for fixed price, but AI Pods improve confidence in delivering efficiently on such contracts.
Mgmt stance: Neutral on capital allocation – disciplined, prioritizing ROIC; bullish on fixed-price contracts due to AI Pods enabling better delivery.