Argentina · Business
Key Facts
- —Guidance cut full-year 2026 revenue outlook lowered to US$2.428–2.462 billion
- —Old target the prior 2026 range had topped out at US$2.508 billion
- —Share reaction the stock fell about 14% in after-hours trading on August 13, 2026
- —Q2 2026 revenue US$614.4 million, roughly flat on a year earlier
- —The driver soft demand, slow North American deals and AI disruption fears
The Argentine-born software house is racing to sell artificial intelligence. Even as the same technology cools the appetite of the enterprise clients it depends on.
Globant, the Argentine-founded software company, cut its full-year 2026 revenue guidance on Thursday, August 13, and its shares fell sharply in response. The new outlook of US$2.428 billion to US$2.462 billion sits below the range the company had promised earlier this year.
What Globant Announced
Globant reported its second-quarter results after markets closed on Thursday, August 13. At the same time, it lowered the revenue it expects for the whole of 2026.
The company now guides to between US$2.428 billion and US$2.462 billion for the year. Because that top figure is below where the range used to start, the message was clearly a downgrade.
Management also set a third-quarter target of US$607 million to US$615 million. So the caution runs into the second half of the year, not just one quarter.
The Old Guidance Versus the New
Earlier in 2026, Globant had guided full-year revenue to a range of US$2.462 billion to US$2.508 billion. The fresh range shaves money off both ends of that forecast.
In plain terms, the ceiling fell and so did the floor. As a result, even the best case investors were counting on has moved lower.
The company still expects adjusted earnings of US$5.75 to US$6.15 per share for the year. Even so, a smaller top line worries a market that had priced in faster growth.
Live Company IntelligenceGlobant Cuts Its 2026 Guidance as AI Fears Hit IT Demand — the full investor dossier
How the Shares Reacted
The reaction was quick and unforgiving. After the report landed, the stock dropped about 14% in extended trading, sliding from a close near US$41 toward US$35.
Some coverage put the post-earnings fall even steeper, closer to 17%. Either way, it was a heavy single-session hit for shareholders.
The shares were already weak before this. In fact, the stock had touched its lowest level since 2017 back in June, so the guidance cut deepened an existing slump.
Inside the Second-Quarter Numbers
Second-quarter revenue came in at US$614.4 million. That was essentially flat against the same quarter a year earlier.
For a company that built its name on rapid expansion, flat is the real headline. Because growth has stalled, the market is questioning the old story.
Reported profit was thin on one measure and healthier on another. Diluted earnings were US$0.04 per share under IFRS rules, while the adjusted figure the company prefers was US$1.40.
Why Management Trimmed the Outlook
Globant blamed a mix of pressures rather than a single shock. Above all, it pointed to a tough economic backdrop and slower decision-making by clients in North America.
Deals are taking longer to close, and newer markets have been soft. Meanwhile, travel and hospitality customers have pulled back as oil prices bite into their budgets.
None of these forces is unique to one firm. Still, together they explain why a company used to double-digit growth suddenly sounds cautious.
Why AI Squeezes an IT-Services Firm
This is the puzzle that spooked investors most. Globant sells the work of engineers who design and build software for large companies.
Generative AI now lets those same clients build more with fewer outside developers. As a result, buyers can slow their spending and sign smaller contracts, which eats into services revenue.
So the technology Globant is betting on is also its biggest threat. In short, the tool that promises new business can quietly shrink the old one.
Globant’s Own AI Pivot
The company insists it is on the right side of this shift. Chief executive Martin Migoya said Globant is leading one of the biggest pivots in its history toward AI-native services.
The idea is to sell finished results rather than billed hours. For example, its new Glob.
AI platform charges clients for output instead of headcount. That pivot could protect margins if it works.
Yet it also asks investors to trust a business model the market has barely tested.
Who Globant Is
Globant is a technology services company that designs software and digital products for global brands. It works across areas such as engineering, product design and, increasingly, artificial intelligence.
The firm was founded in Buenos Aires in 2003 and is now headquartered in Luxembourg. Despite the move abroad, it remains one of Argentina’s best-known tech exports.
It employs roughly 30,000 people worldwide, a figure that is approximate. Because its client base is global, its results track the mood of large corporate technology budgets.
The Argentine Tech Story
Globant grew from a Buenos Aires startup into a company listed on the New York Stock Exchange. For many, it became a symbol of what Argentine talent could build.
That success has drawn national pride and government attention over the years. So each stumble is read at home as more than a company problem.
The country’s wider tech sector still leans on skilled, lower-cost engineers. Yet the same AI wave now testing Globant is testing that whole model.
What It Means for Investors
The immediate worry is that growth has flattened while the outlook keeps drifting down. Because the shares were already near multi-year lows, patience is thin.
Investors now face a judgement call on the AI pivot. If output-based selling takes hold, the slump may look like a turning point rather than a decline.
For now, though, the market is pricing in doubt. Overall, the guidance cut has reset expectations to a more sober level.
What to Watch Next
The key test is whether third-quarter revenue lands inside the new range. Once that is clear, the picture should steady.
Watch, too, how quickly the AI-native services actually bring in money. Because that is the story management is selling, results will speak louder than slides.
Any sign that North American deals are moving again would help. In short, Globant needs demand to thaw before the shares can recover.
Frequently Asked Questions
What did Globant change about its 2026 guidance?
Globant lowered its full-year 2026 revenue outlook to between US$2.428 billion and US$2.462 billion. That is down from a prior range of US$2.462 billion to US$2.508 billion.
How far did Globant shares fall?
The stock dropped about 14% in after-hours trading on August 13, 2026, sliding from near US$41 toward US$35. Some reports put the post-earnings decline closer to 17%.
Why is an IT-services company hurt by AI?
Globant sells engineering work to build software, so clients using AI can do more with fewer outside developers. As a result, buyers slow spending and sign smaller contracts.
Where is Globant based?
Globant was founded in Buenos Aires, Argentina in 2003 and is now headquartered in Luxembourg. It remains one of Argentina’s best-known technology companies.
Connected Coverage
Sources: Globant Q2 2026 earnings release and investor relations, MarketBeat, Nasdaq/earnings transcript summaries, Investing.com and market coverage.
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