Revenue growth has decelerated to -0.7% in 2026Q1, while gross margins have experienced significant compression from a 37.6% peak in 2024Q4 to 30.1% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Sales/Revenue | 2.45B | 2.45B | 2.42B | 2.1B | 1.78B | 1.3B | 814.14M | 659.33M | 522.31M | 413.44M | 322.86M | 253.8M | 199.6M | 158.32M | 128.85M | 90.07M | 57.3M |
| Revenue Growth % | -0.2% | 1.62% | 15.26% | 17.73% | 37.25% | 59.32% | 23.48% | 26.23% | 26.33% | 28.06% | 27.21% | 27.15% | 26.07% | 22.88% | 43.05% | 57.21% | - |
| Cost of Goods Sold | 1.65B | 1.6B | 1.55B | 1.34B | 1.11B | 802.09M | 509.81M | 405.16M | 318.55M | 262.58M | 190.94M | 160.29M | 121.69M | 99.6M | 80.61M | 53.6M | 34.53M |
| COGS % of Revenue | - | 65% | 64.26% | 63.94% | 62.4% | 61.84% | 62.62% | 61.45% | 60.99% | 63.51% | 59.14% | 63.16% | 60.97% | 62.91% | 62.56% | 59.51% | 60.26% |
| Gross Profit | 800.13M | 859.29M | 863.37M | 755.76M | 669.39M | 494.99M | 304.33M | 254.16M | 203.76M | 150.85M | 131.92M | 93.5M | 77.91M | 58.72M | 48.24M | 36.47M | 22.77M |
| Gross Margin % | 32.65% | 35% | 35.74% | 36.06% | 37.6% | 38.16% | 37.38% | 38.55% | 39.01% | 36.49% | 40.86% | 36.84% | 39.03% | 37.09% | 37.44% | 40.49% | 39.74% |
| Gross Profit Growth % | - | -0.47% | 14.24% | 12.9% | 35.23% | 62.65% | 19.74% | 24.74% | 35.07% | 14.35% | 41.09% | 20.01% | 32.68% | 21.73% | 32.27% | 60.19% | - |
| Operating Expenses | 612.39M | 687.56M | 637.95M | 556.8M | 462.69M | 350.56M | 220.38M | 173.43M | 133.49M | 110.89M | 81.35M | 71.59M | 57.29M | 54.84M | 47.68M | 26.54M | 16.52M |
| OpEx % of Revenue | - | 28.01% | 26.41% | 26.57% | 25.99% | 27.03% | 27.07% | 26.3% | 25.56% | 26.82% | 25.2% | 28.21% | 28.7% | 34.64% | 37% | 29.46% | 28.84% |
| Selling, General & Admin | 562.47M | 629.33M | 480.4M | 405.79M | 354.09M | 263.58M | 161.91M | 124.84M | 110.54M | 92.88M | 69.31M | 61.62M | 48.72M | 45.44M | 41.79M | 23.98M | 15.55M |
| SG&A % of Revenue | - | 25.64% | 19.89% | 19.36% | 19.89% | 20.32% | 19.89% | 18.93% | 21.16% | 22.47% | 21.47% | 24.28% | 24.41% | 28.7% | 32.43% | 26.62% | 27.15% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 58.23M | 157.55M | 151.01M | 108.59M | 86.97M | 58.48M | 48.59M | 6.22M | 3.99M | 3.63M | 19.71M | 13.01M | 31.08M | 291K | -3K | 970.77K |
| Operating Income | 187.75M | 171.73M | 225.42M | 198.96M | 206.71M | 144.43M | 83.94M | 80.73M | 66.8M | 38.37M | 50.58M | 23.73M | 22.13M | -5.7M | 557K | 9.93M | 6.24M |
| Operating Margin % | 7.66% | 7% | 9.33% | 9.49% | 11.61% | 11.14% | 10.31% | 12.25% | 12.79% | 9.28% | 15.66% | 9.35% | 11.09% | -3.6% | 0.43% | 11.03% | 10.89% |
| Operating Income Growth % | - | -23.82% | 13.3% | -3.75% | 43.12% | 72.06% | 3.97% | 20.87% | 74.06% | -24.12% | 113.13% | 7.23% | 488.3% | -1123.16% | -94.39% | 59.1% | - |
| EBITDA | 347.06M | 332.05M | 388.15M | 338.82M | 314.64M | 224.72M | 132.42M | 119.57M | 87.34M | 54.5M | 61.49M | 33.03M | 30.16M | 1.46M | 5.33M | 12.43M | 7.88M |
| EBITDA Margin % | 14.16% | 13.53% | 16.07% | 16.17% | 17.67% | 17.32% | 16.27% | 18.14% | 16.72% | 13.18% | 19.05% | 13.01% | 15.11% | 0.92% | 4.13% | 13.8% | 13.75% |
| EBITDA Growth % | -2.01% | -14.45% | 14.56% | 7.69% | 40.01% | 69.7% | 10.74% | 36.91% | 60.25% | -11.37% | 86.17% | 9.51% | 1970.21% | -72.65% | -57.14% | 57.75% | - |
| D&A (Non-Cash Add-back) | 159.32M | 160.32M | 162.73M | 139.86M | 107.93M | 80.29M | 48.48M | 38.84M | 20.54M | 16.13M | 10.92M | 9.3M | 8.03M | 7.16M | 4.77M | 2.5M | 1.64M |
| EBIT | 176.63M | 139.15M | 254.28M | 218.09M | 206.92M | 135.33M | 85.4M | 74.14M | 68.14M | 39.43M | 51.01M | 51.04M | 35.62M | 21.6M | -164K | 9.15M | 6.31M |
| Net Interest Income | -36.16M | -40.61M | -23.36M | -18.98M | -11.2M | -9.83M | -8.51M | -4.13M | -1.13M | -894K | -1.37M | -1.66M | -1.81M | -1.78M | -1.23M | -371K | -182.08K |
| Interest Income | 4.25M | 0 | 5.3M | 4.78M | 2.83M | 652K | 1.92M | 958K | 407K | 479K | 60K | 8K | 99K | 38K | 68K | 0 | 0 |
| Interest Expense | 30.41M | 0 | 28.66M | 23.75M | 14.04M | 10.48M | 10.43M | 6.65M | 1.54M | 1.37M | 1.43M | 1.66M | 1.91M | 1.82M | 1.3M | 371K | 182.08K |
| Other Income/Expense | -36.91M | -32.59M | -14.99M | -943K | -13.82M | -19.58M | -7.42M | -11.7M | 670K | 5.38M | 617K | 26.31M | 12.06M | 25.48M | -2.02M | -1.15M | -113.62K |
| Pretax Income | 150.83M | 139.15M | 210.43M | 198.02M | 192.88M | 124.85M | 76.52M | 69.03M | 67.46M | 39.26M | 51.19M | 50.04M | 34.19M | 19.78M | -1.46M | 8.78M | 6.13M |
| Pretax Margin % | 6.15% | 5.67% | 8.71% | 9.45% | 10.83% | 9.63% | 9.4% | 10.47% | 12.92% | 9.49% | 15.86% | 19.72% | 17.13% | 12.49% | -1.13% | 9.74% | 10.7% |
| Income Tax | 38.6M | 35.19M | 41.43M | 39.51M | 43.41M | 28.5M | 22.31M | 15.02M | 15.87M | 8.08M | 14.48M | 18.42M | 8.93M | 6.01M | -160K | 1.69M | 932.59K |
| Effective Tax Rate % | 25.59% | 25.29% | 19.69% | 19.95% | 22.5% | 22.82% | 29.15% | 21.75% | 23.52% | 20.59% | 28.3% | 36.81% | 26.12% | 30.38% | 10.95% | 19.24% | 15.22% |
| Net Income | 109.26M | 102.92M | 165.73M | 158.54M | 148.89M | 96.06M | 54.22M | 54.02M | 51.6M | 31.17M | 36.71M | 31.62M | 25.26M | 13.77M | -1.3M | 7.09M | 5.19M |
| Net Margin % | 4.46% | 4.19% | 6.86% | 7.56% | 8.36% | 7.41% | 6.66% | 8.19% | 9.88% | 7.54% | 11.37% | 12.46% | 12.66% | 8.7% | -1.01% | 7.87% | 9.06% |
| Net Income Growth % | -28.7% | -37.9% | 4.54% | 6.48% | 54.99% | 77.19% | 0.37% | 4.69% | 65.51% | -15.07% | 16.09% | 25.16% | 83.48% | 1158.34% | -118.36% | 36.48% | - |
| Net Income (Continuing) | 112.23M | 103.96M | 169M | 158.51M | 149.48M | 96.36M | 54.22M | 54.02M | 51.6M | 30.46M | 35.86M | 31.62M | 25.26M | 13.77M | -1.3M | 7.09M | 5.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 68.69M | 68.03M | 69.42M | 66.02M | 48.61M | 2.94M | 0 | 0 | 0 | -40K | 36K | 50K | 0 | 492K | 0 | 0 | 9.29K |
| EPS (Diluted) | 2.52 | 2.29 | 3.72 | 3.64 | 3.47 | 2.28 | 1.37 | 1.43 | 1.41 | 0.86 | 1.04 | 0.90 | 0.79 | 0.41 | -0.04 | 0.21 | 0.15 |
| EPS Growth % | -28.18% | -38.44% | 2.2% | 4.9% | 52.19% | 66.42% | -4.2% | 1.42% | 63.95% | -17.31% | 15.56% | 13.92% | 92.68% | 1151.28% | -118.57% | 40% | - |
| EPS (Basic) | - | 2.33 | 3.82 | 3.72 | 3.55 | 2.35 | 1.41 | 1.48 | 1.44 | 0.89 | 1.07 | 0.93 | 0.81 | 0.41 | -0.04 | 0.21 | 0.15 |
| Diluted Shares Outstanding | 43.35M | 45.01M | 44.59M | 43.59M | 42.85M | 42.08M | 39.72M | 37.67M | 36.69M | 36.1M | 35.41M | 35.01M | 31.87M | 33.35M | 33.35M | 33.35M | 33.35M |
| Basic Shares Outstanding | 43.08M | 44.94M | 44.55M | 42.6M | 41.93M | 40.94M | 38.52M | 36.59M | 35.75M | 34.92M | 34.4M | 33.96M | 30.93M | 33.35M | 33.35M | 33.35M | 33.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Discretionary IT spending contraction
As reported in recent financial statements, Globant's year-over-year revenue growth has decelerated significantly, reaching a low of -0.7% in 2026Q1, which contrasts sharply with the double-digit expansion observed in early 2024 and suggests a material softening in demand for large-scale digital transformation projects across core markets.
The transition from double-digit growth to negative territory indicates that the firm's project-based model is highly sensitive to current macroeconomic pressures. Investors should monitor whether this trend reflects a permanent shift in client spending behavior or merely a temporary pause in discretionary IT investment cycles.
Based on Globant's reported figures, gross margins have experienced notable compression, falling from a peak of 37.6% in 2024Q4 to 30.1% by 2026Q1, highlighting the difficulty of maintaining pricing power while managing the rising labor costs inherent in the firm's specialized nearshore delivery model.
The inability to sustain gross margins above the 35% threshold suggests that the company may be facing increased competition or rising wage inflation in its primary delivery hubs. This margin erosion warrants further investigation into the firm's ability to pass through costs to clients in a tightening budget environment.
According to recent SEC filings, Globant's operating income has failed to scale efficiently with revenue, as evidenced by an operating margin that dipped to 9.1% in 2026Q1, suggesting that the firm's overhead and studio-based cost structure are not sufficiently flexible to absorb recent revenue declines.
The lack of operating leverage implies that the company's fixed costs, likely tied to high-end talent retention and studio infrastructure, remain elevated despite slowing top-line growth. This structural rigidity may continue to weigh on profitability until the firm can better align its cost base with current demand levels.
As indicated by the income statement data, the sharp drop in net income to a loss in 2025Q2 and subsequent volatility suggests that the firm's bottom line is highly susceptible to operational disruptions, raising concerns about the sustainability of its current business model in a low-growth environment.
Short-sellers may focus on the inconsistency of earnings and the potential for further margin compression if the firm is forced to lower prices to maintain market share. The reliance on aggressive M&A to drive growth may also mask underlying organic weaknesses that could become more pronounced if capital markets tighten.
Quick answers to the most common questions about buying GLOB stock.
For fiscal year 2025, Globant S.A. (GLOB) reported total revenue of $2.45B. This represents a 4184.6% increase compared to $57.3M in 2010.
Globant S.A. (GLOB) is profitable, generating $102.9M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
Globant S.A. (GLOB) reported an operating income of $171.7M, resulting in an operating profit margin of 7.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Globant S.A. (GLOB) generated $859.3M in gross profit for the year, representing a gross profit margin of 35.0%. This demonstrates the company's core pricing power and production efficiency.