Globant’s fourth‑quarter 2025 revenue fell 4.7% to $612.5 million, a decline from $642.5 million in the same period a year earlier. The drop reflects a mix of weaker demand in legacy consulting services and a modest contraction in the Latin American market, while North America continued to provide a stable revenue base. The company’s earnings per share also slipped, with IFRS diluted EPS of $0.93 versus $0.85 in Q4 2024 and Non‑IFRS adjusted diluted EPS of $1.54 versus $1.75 a year earlier, largely due to higher operating costs in Colombia and India and a weaker U.S. dollar that increased the cost of imported services.
The company’s adjusted operating margin held steady at 15.5%, matching the prior year’s figure. This stability was achieved through disciplined cost management and a higher mix of high‑margin AI‑native services, which offset the revenue decline. Free cash flow reached a record $152.8 million, driven by strong cash generation from the AI Pods subscription model, which generated $20.6 million in annual recurring revenue. The AI Pods and Enterprise AI Platform continue to attract new customers, and the company’s pipeline exceeds $3 billion, underscoring the potential for future revenue acceleration.
Guidance for the first quarter of 2026 remains unchanged, with revenue projected between $598 million and $604 million and a midpoint of $601 million, slightly above analyst consensus. Full‑year 2026 revenue guidance is $2.46 billion to $2.51 billion, indicating modest year‑over‑year growth. Adjusted EPS guidance for the year is $6.10 to $6.50, reflecting confidence in maintaining profitability while investing in AI capabilities.
CEO Martín Migoya said, "We aren't just riding the AI wave; we want to re‑define what the next era of professional services actually looks like." He added, "Our solid bookings, a pipeline exceeding $3 billion, and $20.6 million in ARR generated from our AI Pods are indicators of how we are executing our vision." CFO Juan Urthiague noted, "As we begin 2026, we remain focused on maintaining our discipline to capture the opportunities in our robust pipeline."
Investors responded favorably to the results, citing the revenue beat, in‑line EPS, record free cash flow, and the company’s clear AI strategy as key drivers of confidence in Globant’s future growth prospects.
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