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Globant S.A. is revolutionizing the digital landscape by seamlessly integrating cutting-edge technology into everyday business operations worldwide. As a powerhouse in information technology services, Globant leads with innovative solutions spanning AI, cloud transformation, and digital experience platforms. Renowned for its agile delivery and strategic consulting, the company shapes how industries adapt to the digital age. The key question for investors today is whether Globant’s robust innovation pipeline and market presence will continue to drive sustainable growth and justify its valuation.
Table of contents
Business Model & Company Overview
Globant S.A., founded in 2003 and headquartered in Luxembourg City, stands as a dominant player in the Information Technology Services sector. Its core mission integrates a vast ecosystem of digital transformation services, from e-commerce and cloud solutions to AI-driven healthcare and entertainment technologies. This comprehensive portfolio enables clients worldwide to reinvent business models and enhance user experiences through cutting-edge innovation.
The company’s revenue engine balances software platforms, consulting, and recurring digital services across key global markets in the Americas, Europe, and Asia. Leveraging agile delivery and advanced data strategies, Globant generates value through scalable, high-tech solutions tailored for diverse industries. Its strong market position is reinforced by a broad service offering that creates a sustainable economic moat, shaping the future of technology-driven business transformation.
Financial Performance & Fundamental Metrics
In this section, I analyze Globant S.A.’s income statement, key financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The table below summarizes the annual income statement figures for Globant S.A. over the past five fiscal years, reported in USD.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue | 814M | 1.30B | 1.78B | 2.10B | 2.42B |
| Cost of Revenue | 510M | 802M | 1.11B | 1.34B | 1.55B |
| Operating Expenses | 220M | 351M | 463M | 557M | 638M |
| Gross Profit | 304M | 495M | 669M | 756M | 863M |
| EBITDA | 134M | 216M | 315M | 358M | 417M |
| EBIT | 85M | 135M | 207M | 218M | 254M |
| Interest Expense | 10M | 10M | 14M | 24M | 29M |
| Net Income | 54M | 96M | 149M | 159M | 166M |
| EPS | 1.41 | 2.35 | 3.55 | 3.72 | 3.82 |
| Filing Date | 2021-02-26 | 2022-02-28 | 2022-12-31 | 2024-02-29 | 2025-02-28 |
Income Statement Evolution
Globant S.A. exhibited strong revenue growth of 15.3% in 2024, continuing a favorable trend with a nearly 197% increase since 2020. Gross profit rose 14.2% year-on-year, maintaining a stable gross margin around 35.7%. EBIT margin improved to 10.5%, reflecting effective cost management despite rising operating expenses, supporting an overall favorable margin profile.
Is the Income Statement Favorable?
In 2024, Globant posted $2.42B revenue and $166M net income, with net margin at 6.9%, slightly down year-over-year. EBIT increased 16.6%, driven by operational efficiency, while interest expense remained low at 1.2% of revenue. Despite a 9.3% decline in net margin growth, EPS rose 2.2%, indicating generally favorable fundamentals supported by consistent margin stability and strong top-line expansion.
Financial Ratios
The following table presents key financial ratios for Globant S.A. over the fiscal years 2020 to 2024, offering insight into profitability, liquidity, leverage, efficiency, and shareholder returns:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 6.7% | 7.4% | 8.4% | 7.6% | 6.9% |
| ROE | 6.2% | 7.4% | 9.9% | 9.2% | 8.4% |
| ROIC | 5.4% | 7.3% | 8.9% | 7.0% | 6.8% |
| P/E | 155 | 134 | 47 | 64 | 58 |
| P/B | 9.5 | 9.9 | 4.7 | 5.9 | 4.9 |
| Current Ratio | 2.6 | 2.1 | 2.0 | 1.4 | 1.5 |
| Quick Ratio | 2.6 | 2.1 | 2.0 | 1.4 | 1.5 |
| D/E | 0.13 | 0.11 | 0.09 | 0.16 | 0.21 |
| Debt-to-Assets | 8.8% | 7.8% | 6.3% | 10.2% | 13.0% |
| Interest Coverage | 8.0 | 13.8 | 14.7 | 8.4 | 7.9 |
| Asset Turnover | 0.63 | 0.69 | 0.81 | 0.77 | 0.76 |
| Fixed Asset Turnover | 4.3 | 4.7 | 5.8 | 7.4 | 8.7 |
| Dividend Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Evolution of Financial Ratios
From 2020 to 2024, Globant S.A.’s Return on Equity (ROE) showed fluctuations, peaking around 9.88% in 2022 before declining to 8.44% in 2024, indicating a slight slowdown in profitability. The Current Ratio consistently decreased from 2.60 to 1.54, reflecting a reduction in short-term liquidity but maintaining a favorable level. The Debt-to-Equity Ratio increased from 0.13 to 0.21, suggesting a gradual rise in leverage while still remaining moderate.
Are the Financial Ratios Favorable?
In 2024, profitability ratios such as net margin (6.86%) and ROIC (6.82%) are neutral, while ROE at 8.44% is unfavorable, indicating modest returns. Liquidity ratios including the current and quick ratios at 1.54 are favorable, supporting adequate short-term financial health. Leverage metrics, with debt-to-equity at 0.21 and debt-to-assets at 12.95%, are favorable, showing manageable debt levels. Efficiency is mixed; asset turnover is neutral at 0.76, but fixed asset turnover is favorable at 8.7. Market valuation ratios such as price-to-earnings (57.64) and price-to-book (4.86) are unfavorable, and the dividend yield remains at 0%. Overall, the ratios present a slightly favorable profile.
Shareholder Return Policy
Globant S.A. does not pay dividends, maintaining a zero dividend payout ratio and dividend yield over recent years. The company appears to prioritize reinvestment and growth initiatives, as indicated by positive net income per share and free cash flow, without engaging in share buybacks.
This approach suggests a focus on long-term value creation through operational expansion and capital allocation rather than immediate shareholder returns. Absence of dividends combined with no buyback programs reflects a strategy aligned with reinvesting earnings to support sustainable growth.
Score analysis
The following radar chart illustrates Globant S.A.’s key financial scores for a comprehensive evaluation:
Globant’s discounted cash flow score is very favorable at 5, while return on equity, return on assets, and debt to equity scores are moderate at 3 each. The price to earnings score is lower at 2, indicating some caution, whereas the price to book score stands at a favorable 4.
Analysis of the company’s bankruptcy risk
Globant’s Altman Z-Score positions it in the grey zone, indicating a moderate risk of bankruptcy and financial uncertainty:
Is the company in good financial health?
The Piotroski Score diagram provides insight into Globant’s financial strength and stability:
With a Piotroski Score of 5, Globant demonstrates average financial health, reflecting a balanced position between strengths and weaknesses in its financial indicators.
Competitive Landscape & Sector Positioning
This sector analysis will examine Globant S.A.’s strategic positioning, revenue by segment, key products, main competitors, competitive advantages, and SWOT analysis. I will assess whether Globant holds a competitive advantage over its peers in the technology services industry.
Strategic Positioning
Globant S.A. maintains a diversified product portfolio across technology services, including digital transformation, cloud, AI, and specialized sectors like healthcare and smart farming. Geographically, it has broad exposure with significant revenue from North America (1.35B in 2024), Latin America (531M), Europe (419M), and Asia (117M), reflecting a global footprint.
Key Products & Brands
The following table summarizes Globant S.A.’s main products and service offerings across its technology portfolio:
| Product | Description |
|---|---|
| Reinvention Studios | Services in e-commerce, new distribution capabilities, augmented revenue management, hyper connected operation, and conversational UX. |
| Digital Services | Includes digital lending, commercial effectiveness, finance, sustainability, regulation analytics, transformation, post-merger integration, payment, and open banking. |
| Game & Graphic Engineering | Offers game as a service, UI and UX design, DevOps, online services, and high-tech tools. |
| Healthcare & Life Sciences | Smart farming, image diagnosis, healthcare interoperability, genomics data processing, telemedicine, medical devices, R&D, and precision medicine. |
| Media, Entertainment & Travel | Services tailored to media, entertainment, and travel/hospitality sectors. |
| Cloud Services | Cloud transformation advice, environment building, workload migration, support, chaos engineering, and site reliability engineering. |
| Data & AI Solutions | Data strategies, insights, data platforms, MLOps, and data as a product services. |
| Agile & Emerging Tech | Agile delivery, blockchain, conversational interfaces, cybersecurity, digital sales and marketing, enterprise applications, IoT, metaverse, process optimization, and sustainable business solutions. |
| Smart Underwriting & Collections | Digital experience platforms, smart underwriting, monitoring, and digital collection services. |
| Product & Platform Services | Product strategy, management, delivery services, strategic architecture consulting, platforms evolution, and augmented composable solutions. |
| Proprietary Platforms | Augmented coding and testing, StarMeUp, PagoChat, ShopChat, and Walmeric platforms. |
Globant’s offerings span a broad spectrum of digital transformation services, combining technology innovation with sector-specific solutions and proprietary platforms to support diverse client needs globally.
Main Competitors
There are 16 competitors in total, with the table below listing the top 10 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| International Business Machines Corporation | 272.5B |
| Accenture plc | 162.0B |
| Cognizant Technology Solutions Corporation | 39.9B |
| Fiserv, Inc. | 35.7B |
| Fidelity National Information Services, Inc. | 34.0B |
| Wipro Limited | 29.7B |
| Leidos Holdings, Inc. | 23.5B |
| Gartner, Inc. | 18.2B |
| CDW Corporation | 17.3B |
| Jack Henry & Associates, Inc. | 13.0B |
Globant S.A. ranks 13th among 16 competitors and holds about 1.12% of the market cap of the sector leader, IBM. The company is positioned below both the average market cap of the top 10 competitors (64.6B) and the sector median (17.8B). It maintains a significant gap with its closest competitor above, with a distance of +169.01%.
Does GLOB have a competitive advantage?
Globant S.A. shows a slightly unfavorable competitive advantage as its ROIC is below WACC by 2.2%, indicating value destruction despite a positive ROIC growth trend of 26%. The company’s income statement is largely favorable, with strong revenue and profit growth over recent years.
The future outlook includes expansion through diverse technology services such as cloud transformation, AI-driven platforms, and digital experience solutions, addressing multiple industries worldwide. These opportunities may help enhance profitability amid continued global geographic revenue diversification.
Comparisons with competitors
Check out how we compare the company to its competitors:
SWOT Analysis
This SWOT analysis highlights the key internal and external factors impacting Globant S.A.’s strategic position as of 2026.
Strengths
- Strong revenue growth of 197% over 5 years
- Diverse global presence with significant North American and Latin American markets
- Favorable profitability margins and operational efficiency
Weaknesses
- High valuation multiples (PE 57.64, PB 4.86) limit upside
- Moderate return on equity (8.44%) below cost of capital
- No dividend yield, limiting income appeal
Opportunities
- Expansion in emerging tech sectors like AI, cloud, and metaverse
- Increasing demand for digital transformation across industries
- Growth potential in underpenetrated Asian and European markets
Threats
- Intense competition in IT services and consulting
- Currency and geopolitical risks in Latin America and Europe
- Technology disruption requiring continuous innovation
Globant shows robust growth and solid operational performance but faces challenges from its high valuation and moderate capital returns. Strategic focus on innovation and geographic diversification is critical to leverage emerging tech opportunities while managing competitive and macroeconomic risks.
Stock Price Action Analysis
The following weekly stock chart illustrates Globant S.A.’s price movements over the last 12 months, highlighting key fluctuations and trends:
Trend Analysis
Over the past 12 months, Globant S.A. experienced a bearish trend with a price decline of -68.94%, accompanied by high volatility (std deviation 61.36). The stock reached a peak of 231.36 and a low of 56.11, with the downward trend accelerating. However, a recent 11-week period shows a 13.74% rebound, indicating a short-term positive slope of 0.64.
Volume Analysis
Trading volume has been increasing overall, with total volume at 470.7M shares. Sellers have dominated historically with 54% of volume, but recent activity from November 2025 to January 2026 shows buyer dominance at 65%, suggesting growing investor interest and potentially improving market participation.
Target Prices
The consensus target prices for Globant S.A. indicate a moderately bullish outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 80 | 68 | 73.75 |
Analysts expect the stock to trade within a range of 68 to 80, with an average target around 73.75, reflecting cautious optimism.
Analyst & Consumer Opinions
This section presents an overview of analyst ratings and consumer feedback concerning Globant S.A. (GLOB).
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Stock Grades
Here are the latest verified stock grades for Globant S.A. from recognized financial institutions:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-14 |
| Jefferies | Downgrade | Hold | 2025-11-20 |
| UBS | Maintain | Neutral | 2025-11-18 |
| Needham | Maintain | Buy | 2025-11-14 |
| JP Morgan | Maintain | Neutral | 2025-11-14 |
| Canaccord Genuity | Maintain | Hold | 2025-11-14 |
| Goldman Sachs | Maintain | Neutral | 2025-10-09 |
| UBS | Maintain | Neutral | 2025-08-20 |
| Goldman Sachs | Maintain | Neutral | 2025-08-18 |
| Needham | Maintain | Buy | 2025-08-15 |
The grades show a predominant neutral to hold stance with a few buy ratings maintained by Needham, reflecting cautious optimism. Recent downgrades and stable neutral grades suggest a balanced market view with no strong directional bias.
Consumer Opinions
Consumer sentiment around Globant S.A. (GLOB) reveals a blend of enthusiasm for innovation and some concerns about service consistency.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative solutions that really transform businesses.” | “Customer support can be slow during peak times.” |
| “Strong expertise in digital transformation projects.” | “Sometimes project delivery timelines are extended.” |
| “Great collaboration and communication with teams.” | “Pricing is a bit high compared to competitors.” |
Overall, consumers appreciate Globant’s cutting-edge technology and collaborative approach, though some highlight occasional delays and premium pricing as areas for improvement.
Risk Analysis
Below is a summary table of key risks associated with Globant S.A., highlighting their likelihood and potential impact on investment decisions:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Stock price fluctuates widely between $54.36 and $228.98, reflecting high beta (1.204). | High | High |
| Valuation Risk | Elevated P/E (57.64) and P/B (4.86) ratios indicate potential overvaluation. | Medium | High |
| Profitability | Moderate net margin (6.86%) and low ROE (8.44%) suggest limited profitability growth. | Medium | Medium |
| Financial Stability | Altman Z-Score near 2.98 places company in grey zone, indicating moderate bankruptcy risk. | Medium | High |
| Dividend Policy | No dividend payout, possibly limiting income-focused investor appeal. | Low | Low |
| Debt Management | Favorable debt-to-equity ratio (0.21) and interest coverage (8.87) reduce financial distress. | Low | Low |
| Industry Disruption | Rapid tech changes could affect demand for IT services and innovation capabilities. | Medium | Medium |
The most concerning risks are market volatility and valuation, given Globant’s wide trading range and high price multiples. The grey-zone Altman Z-Score also signals moderate financial uncertainty, requiring cautious risk management.
Should You Buy Globant S.A.?
Globant appears to be improving profitability with a growing return on invested capital, yet it is shedding value relative to its cost of capital, suggesting a slightly unfavorable moat. Despite a manageable leverage profile and a very favorable A- rating, risk indicators remain moderate, reflecting a nuanced investment profile.
Strength & Efficiency Pillars
Globant S.A. shows commendable operational efficiency with a gross margin of 35.74% and an EBIT margin of 10.53%, reflecting solid profitability. Its financial health is supported by a favorable Altman Z-Score of 2.98, indicating moderate bankruptcy risk, and a Piotroski score of 5, suggesting average financial strength. Although the ROIC of 6.82% falls slightly below the WACC of 9.03%, signaling value erosion, the company’s growing ROIC trend of 26.04% suggests improving profitability. Leverage metrics, including a debt-to-equity ratio of 0.21 and interest coverage of 8.87, further underline financial stability.
Weaknesses and Drawbacks
Several valuation and leverage concerns temper Globant’s appeal. The company trades at a high P/E of 57.64 and a P/B of 4.86, both unfavorable, indicating a premium market valuation that may heighten downside risk if growth falters. Despite solid liquidity ratios (current and quick ratios at 1.54), the firm’s ROE is a modest 8.44%, underperforming relative to peers. Market pressure is evidenced by a 68.94% overall price decline and bearish long-term trend, although recent buyer dominance (65.03%) could signal a technical rebound. The absence of dividends (0% yield) might deter income-focused investors.
Our Verdict about Globant S.A.
Globant’s long-term fundamental profile appears moderately favorable, supported by strong margins and improving profitability trends, but offset by high valuation and moderate financial risk indicators. Given the bearish overall trend but recent buyer dominance and price uptick, the profile might appear attractive for investors with a focus on value improvement, yet suggests a cautious, wait-and-see approach to optimize entry timing amid market volatility.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- ARGA Investment Management LP Increases Stock Holdings in Globant S.A. $GLOB – MarketBeat (Jan 24, 2026)
- Globant SA (GLOB) Trading 3.19% Higher on Jan 22 – GuruFocus (Jan 22, 2026)
- Downward Revision Of Forecast Hit Globant S.A. (GLOB) in Q3 – Yahoo Finance (Dec 04, 2025)
- UBS raises Globant stock price target to $75 on IT services outlook – Investing.com (Jan 20, 2026)
- Truist Financial Initiates a Hold Rating on Globant SA (GLOB) – The Globe and Mail (Jan 07, 2026)
For more information about Globant S.A., please visit the official website: globant.com
