Globant (GLOB) reported first-quarter 2025 non-GAAP EPS of $1.50, missing the Zacks consensus estimate of $1.58, and revenues of $611.1 million, below the forecasted $622 million. Despite a 7% year-over-year revenue increase driven by AI-related opportunities and business momentum, the company’s results disappointed investors amid a challenging macroeconomic environment.

Globant’s leadership emphasized growth in AI and automation through initiatives like the 100-squared client-centric model and innovations in AI Pods, Enterprise AI Platform, and AI Studios. However, headwinds such as a slowing U.S. pipeline conversion, lower consumer spending, and weaker Latin American growth weighed on results.

Sector-wise, the strongest revenue growth came from Travel & Hospitality (+24%) and Banks, Financial Services & Insurance (+23.1%), while Technology & Telecommunications and Healthcare saw declines.

Geographically, North America accounted for 55.5% of revenues, followed by Latin America (19.6%) and Europe (18.2%). Gross margin remained stable at 38.3%, but adjusted operating margin slightly declined to 14.8%.

Following the earnings miss, Globant’s shares tumbled 30.1% in pre-market trading on May 16, 2025, underperforming its industry’s 32.7% growth over the past year.

Looking ahead, Globant forecasted Q2 revenues of at least $612 million (up 4.2% year-over-year) and full-year 2025 revenue of $2.464 billion, with a projected adjusted EPS of $6.10. The company holds a Zacks Rank #5 (Strong Sell).