Revenue growth has stalled at 0.0% in Q2 2026, while operating margins have compressed to 3.2%, indicating significant pricing pressure and negative operating leverage.
Globant S.A. (GLOB) annual income statement — 16-year revenue, gross profit & net income history
| 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 % | -1.26% | 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 | 1.66B | 1.6B | 1.55B | 1.34B | 1.11B | 802.09M | 509.81M | 405.16M | 335.07M | 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% | 64.15% | 63.51% | 59.14% | 63.16% | 60.97% | 62.91% | 62.56% | 59.51% | 60.26% |
| Gross Profit | 790.73M | 859.29M | 863.37M | 755.76M | 669.39M | 494.99M | 304.33M | 254.16M | 187.24M | 150.85M | 131.92M | 93.5M | 77.91M | 58.72M | 48.24M | 36.47M | 22.77M |
| Gross Margin % | 32.26% | 35% | 35.74% | 36.06% | 37.6% | 38.16% | 37.38% | 38.55% | 35.85% | 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% | 35.74% | 24.12% | 14.35% | 41.09% | 20.01% | 32.68% | 21.73% | 32.27% | 60.19% | - |
| Operating Expenses | 588.98M | 687.56M | 637.95M | 556.8M | 462.69M | 350.56M | 220.38M | 173.43M | 138.74M | 117.1M | 81.89M | 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% | 26.56% | 28.32% | 25.36% | 28.21% | 28.7% | 34.64% | 37% | 29.46% | 28.84% |
| Selling, General & Admin | 557.27M | 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 | 28.2M | 24.22M | 12.57M | 19.71M | 13.01M | 31.08M | 291K | -3K | 970.77K |
| Operating Income | 201.74M | 171.73M | 225.42M | 198.96M | 206.71M | 144.43M | 83.94M | 80.73M | 66.8M | 33.17M | 49.57M | 23.73M | 22.13M | -5.7M | 557K | 9.93M | 6.24M |
| Operating Margin % | 8.23% | 7% | 9.33% | 9.49% | 11.61% | 11.14% | 10.31% | 12.25% | 12.79% | 8.02% | 15.35% | 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% | 101.4% | -33.1% | 108.9% | 7.23% | 488.3% | -1123.16% | -94.39% | 59.1% | - |
| EBITDA | 313.74M | 332.05M | 388.15M | 338.82M | 314.64M | 224.72M | 132.42M | 119.57M | 87.34M | 49.29M | 60.49M | 33.03M | 30.16M | 1.46M | 5.33M | 12.43M | 7.88M |
| EBITDA Margin % | 12.8% | 13.53% | 16.07% | 16.17% | 17.67% | 17.32% | 16.27% | 18.14% | 16.72% | 11.92% | 18.74% | 13.01% | 15.11% | 0.92% | 4.13% | 13.8% | 13.75% |
| EBITDA Growth % | 0.13% | -14.45% | 14.56% | 7.69% | 40.01% | 69.7% | 10.74% | 36.91% | 77.18% | -18.51% | 83.13% | 9.51% | 1970.21% | -72.65% | -57.14% | 57.75% | - |
| D&A (Non-Cash Add-back) | 118.29M | 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 | 188.29M | 139.15M | 254.28M | 218.09M | 206.92M | 135.33M | 85.4M | 74.14M | 74.08M | 40.59M | 49.57M | 51.04M | 35.62M | 21.6M | -164K | 9.15M | 6.31M |
| Net Interest Income | -28.72M | -40.61M | -23.36M | -18.98M | -11.2M | -9.83M | -8.51M | -5.7M | -1.13M | -894K | -1.37M | -1.66M | -1.81M | -1.78M | -1.23M | -371K | -182.08K |
| Interest Income | 6.76M | 0 | 5.3M | 4.78M | 2.83M | 652K | 1.92M | 958K | 407K | 479K | 60K | 8K | 99K | 38K | 68K | 0 | 0 |
| Interest Expense | 35.49M | 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 | -42.1M | -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 | 159.65M | 139.15M | 210.43M | 198.02M | 192.88M | 124.85M | 76.52M | 69.03M | 67.46M | 38.54M | 50.19M | 50.04M | 34.19M | 19.78M | -1.46M | 8.78M | 6.13M |
| Pretax Margin % | 6.51% | 5.67% | 8.71% | 9.45% | 10.83% | 9.63% | 9.4% | 10.47% | 12.92% | 9.32% | 15.55% | 19.72% | 17.13% | 12.49% | -1.13% | 9.74% | 10.7% |
| Income Tax | 40.09M | 35.19M | 41.43M | 39.51M | 43.41M | 28.5M | 22.31M | 15.02M | 15.87M | 8.08M | 14.33M | 18.42M | 8.93M | 6.01M | -160K | 1.69M | 932.59K |
| Effective Tax Rate % | 25.11% | 25.29% | 19.69% | 19.95% | 22.5% | 22.82% | 29.15% | 21.75% | 23.52% | 20.97% | 28.55% | 36.81% | 26.12% | 30.38% | 10.95% | 19.24% | 15.22% |
| Net Income | 113.41M | 102.92M | 165.73M | 158.54M | 148.89M | 96.06M | 54.22M | 54.02M | 51.6M | 30.46M | 35.86M | 31.62M | 25.26M | 13.77M | -1.3M | 7.09M | 5.19M |
| Net Margin % | 4.63% | 4.19% | 6.86% | 7.56% | 8.36% | 7.41% | 6.66% | 8.19% | 9.88% | 7.37% | 11.11% | 12.46% | 12.66% | 8.7% | -1.01% | 7.87% | 9.06% |
| Net Income Growth % | 1.08% | -37.9% | 4.54% | 6.48% | 54.99% | 77.19% | 0.37% | 4.69% | 69.37% | -15.05% | 13.42% | 25.16% | 83.48% | 1158.34% | -118.36% | 36.48% | - |
| Net Income (Continuing) | 119.56M | 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 | 60.38M | 68.03M | 69.42M | 66.02M | 48.61M | 2.94M | 0 | 0 | 0 | -40K | 36K | 50K | 0 | 492K | 0 | 0 | 9.29K |
| EPS (Diluted) | 2.62 | 2.29 | 3.72 | 3.64 | 3.47 | 2.28 | 1.37 | 1.43 | 1.41 | 0.84 | 1.01 | 0.90 | 0.79 | 0.41 | -0.04 | 0.21 | 0.15 |
| EPS Growth % | 2.16% | -38.44% | 2.2% | 4.9% | 52.19% | 66.42% | -4.2% | 1.42% | 67.86% | -16.83% | 12.22% | 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 | 1.45 | 0.87 | 1.04 | 0.93 | 0.81 | 0.41 | -0.04 | 0.21 | 0.15 |
| Diluted Shares Outstanding | 43.23M | 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 | 42.86M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Margin compression amid growth stall
Growth Deceleration to Near-Stagnation
Globant's revenue growth has decelerated sharply to 0.0% in Q2 2026, a stark reversal from the 20.9% growth seen in Q1 2024, suggesting a significant slowdown in enterprise digital transformation spending.
The trailing twelve-month revenue growth of 1.62% indicates a near-complete stall in top-line expansion, which appears cyclical given the company's exposure to discretionary IT budgets. This deceleration warrants investigation into whether it reflects market saturation, share loss to competitors, or a fundamental shift in client spending toward smaller, AI-focused engagements rather than large-scale transformation projects.
Gross Margin Volatility and Operating Pressure
Gross margins have exhibited significant volatility, ranging from 30.1% to 37.6% over the past ten quarters, while operating margins have compressed to a low of 1.0% in Q2 2025, indicating pricing pressure and delivery inefficiencies.
The recent Q2 2026 gross margin of 33.9% is below the 37.6% peak in Q4 2024, suggesting potential pricing concessions or an unfavorable project mix. More critically, the operating margin compression to 3.2% in Q2 2026, despite a stable gross margin, points to significant overhead or SG&A inefficiencies that are eroding profitability at a time when revenue growth is absent.
Negative Operating Leverage in a Slowdown
Operating income has failed to scale with gross profit, as seen in Q2 2026 where a $208.2M gross profit yielded only $19.9M in operating income, implying a high fixed-cost base that amplifies margin pressure during revenue softness.
The operating margin of 3.2% in Q2 2026, compared to a 33.9% gross margin, suggests that SG&A and other overhead costs are consuming a disproportionate share of gross profit. This negative operating leverage indicates that the company's cost structure is not flexible enough to maintain profitability during periods of stagnant growth, a risk that could persist if the revenue slowdown continues.
Net Income Volatility and Non-Recurring Noise
Net income has swung from a loss of $2.4M in Q2 2025 to a profit of $37.0M in Q1 2026, with EPS growth of 174.3% in Q2 2026 driven by a low base effect, indicating significant earnings volatility and potential non-operating influences.
The erratic net income trajectory, including a quarterly loss, suggests that non-operating items such as foreign exchange gains/losses or tax adjustments are materially impacting reported results. The 174.3% EPS growth in Q2 2026 is misleading as it follows a period of negative earnings, and investors should focus on the underlying operating profitability rather than headline EPS figures.
SG&A as the Primary Margin Headwind
SG&A expenses have consistently consumed 20-26% of revenue, with Q2 2026 SG&A at $154.3M representing 25.1% of sales, which appears to be the primary driver of operating margin compression.
The SG&A line item is the dominant cost structure after COGS, and its relative stability in absolute terms during a revenue slowdown is creating significant operating leverage. Management's expense discipline appears lacking, as SG&A has not been reduced proportionally to the revenue deceleration, suggesting either strategic investments that have yet to pay off or operational inefficiencies in the corporate overhead structure.
The Margin Compression Challenge
The most significant analytical challenge is that Globant's operating margin has compressed to 3.2% from historical mid-teens levels, while revenue growth has stalled, suggesting a potential structural impairment to profitability that may not be cyclical.
Short-sellers would focus on the combination of near-zero revenue growth and collapsing operating margins as evidence that Globant's competitive position is weakening. The 35% gross margin is now below peers like Cognizant (33.7%) and Infosys (30.2%), but the operating margin of 3.2% is dramatically worse than all peers, indicating that the company's cost structure is fundamentally misaligned with its current revenue trajectory. This could signal that the 'Studio' model is not delivering the promised efficiency gains and that the company is losing pricing power in a competitive market.