Globant S.A. reported third‑quarter 2025 results that included $617.1 million in revenue, a 0.5 % year‑over‑year increase, and diluted earnings per share of $1.53, falling $0.01 short of the $1.54 consensus estimate. Operating margin rose to 15.5 % from 15.0 % in the prior quarter, and the company generated $67.5 million in free cash flow. A $51.9 million business‑optimization charge, which had previously delivered $80 million in annualized savings, underscored the firm’s focus on cost discipline and investment in AI initiatives.
The modest revenue beat can be attributed to continued demand for Globant’s AI‑driven services, which offset broader macro‑economic headwinds that have slowed growth in the IT services sector. While the 0.5 % increase is small, it reflects the company’s ability to maintain pricing power in its high‑margin AI offerings, even as overall market demand remains subdued. The company did not disclose a detailed segment breakdown, but the earnings call emphasized that AI initiatives remain a key growth driver.
The EPS miss of $0.01 was largely a consequence of the $51.9 million business‑optimization charge, a one‑time expense that reduced earnings for the quarter. Despite this hit, the operating margin expansion to 15.5 % helped cushion the impact on profitability. The margin improvement indicates that cost controls and operational efficiencies are offsetting the effect of the charge, allowing the company to preserve earnings momentum.
Globant reiterated its fourth‑quarter and full‑year 2025 outlook, projecting revenue of at least $2.445 billion, a non‑IFRS adjusted operating margin of at least 15 %, and diluted EPS of at least $6.12. The guidance, unchanged from the prior announcement, signals management’s confidence in sustaining growth and profitability amid a challenging macro environment. The company also announced a new share‑repurchase program, reaffirming its commitment to returning value to shareholders while continuing to invest in AI‑driven growth opportunities.
The results highlight a strategic pivot toward AI and cost discipline. The business‑optimization charge, coupled with the $80 million in annualized savings, demonstrates a disciplined approach to capital allocation. While revenue growth remains modest, the company’s focus on high‑margin AI services and operational efficiency positions it to capture upside as the broader IT services market recovers. The guidance and share‑repurchase program suggest that management believes the company’s fundamentals are strong enough to support continued investment and shareholder returns.
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