Globant reports Q2 revenue beat despite earnings miss

Globant SA reported second-quarter revenue of $614.4 million, exceeding Wall Street expectations of $613.2 million. However, the company's adjusted earnings of $1.40 per share fell short of the $1.49 per share estimated by analysts surveyed by Zacks Investment Research. The Luxembourg-based IT services provider reported a net income of $1.8 million for the period.

During the earnings call, CEO Martín Migoya highlighted the company's transition toward AI-native services through its Glob.AI platform and AI Pods model. This model focuses on value and consumption rather than traditional billable hours. Glob.AI annual recurring revenue grew to $52.8 million as of June, up from $32.8 million in March. The company raised its full-year expectation for Glob.AI annual recurring revenue to at least $110 million.

Globant expects third-quarter per-share earnings to range between $1.43 and $1.53, with revenue projected between $607 million and $615 million. For the full year, the company forecasts revenue between $2.43 billion and $2.46 billion, with earnings per share ranging from $5.75 to $6.15.