Revenue (Quarterly)

Q2 2025

$618M to $628M, representing 8.2%-10% YoY (or 10.2%-12% in constant currency) with FX headwind "

At least $612M, representing 4.2% YoY growth "

lowered

Adjusted Operating Margin (Quarterly)

Q2 2025

15.5% to 16.5% "

At least 15% "

lowered

IFRS Effective Income Tax Rate (Quarterly)

Q2 2025

20% to 22% "

20% to 22% "

no change

Adjusted EPS (Quarterly)

Q2 2025

$1.55 to $1.63, assuming 45.3M diluted shares "

At least $1.52, assuming 45.7M diluted shares "

lowered

Revenue (Annual)

FY 2025

$2.635B to $2.75B, representing 9.1%-12% YoY (or 10.6%-13.5% in constant currency) with FX headwind "

At least $2.464B, representing 2% YoY growth "

lowered

Adjusted Operating Margin (Annual)

FY 2025

15.5% to 16.5% "

At least 15% "

lowered

IFRS Effective Income Tax Rate (Annual)

FY 2025

20% to 22% "

20% to 22% "

no change

Adjusted EPS (Annual)

FY 2025

$6.80 to $7.20, assuming 45.5M diluted shares "

At least $6.10 "

lowered

Pipeline Growth and Revenue Expansion

In Q2, Q3, and Q4 2024, Globant consistently emphasized record-high pipeline levels, strong regional contributions (especially North America, Europe, and emerging markets), and robust revenue expansion with notable large deals and solid year‐over‐year gains. " " " "

In Q1 2025, while pipeline growth continues robustly (20% higher than last year) with opportunities in various regions, revenue expansion shows a mixed picture—with North America and Europe growing, new markets booming, and Latin America declining—resulting in a cautious outlook and revised guidance. " " "

Consistent growth overall, but with regional rebalancing and slightly softer revenue performance due to macro uncertainties causing adjustments in guidance.

AI Transformation and Adoption

Across Q2–Q4 2024, extensive focus was placed on AI integration via AI Reinvention Studios, enterprise AI platforms, and emerging innovative subscription or performance-based models. AI-related revenues and pipeline contributions were growing significantly, with strong emphasis on industry-specific AI solutions. " " " " "

Q1 2025 continues this strategic focus, highlighting a decade-long investment in AI, the rollout of comprehensive AI studios, and the introduction of a subscription-based framework “AI pods” that blend autonomous agents with human oversight. This deepens the role of AI across projects and in generating tangible efficiencies. " " "

Consistent strategic emphasis on AI with an evolving subscription model and further integration into client engagements—indicating a maturing of their AI initiatives over time.

Global Expansion and Market Diversification

Q2–Q4 2024 discussions underscored steady diversification with expanding operations in key regions (North America, Europe, Middle East, APAC, and Latin America), supported by significant new office openings and strategic acquisitions—all contributing to a diversified revenue base. " " " "

In Q1 2025, Globant’s expansion remains evident with moderate growth in North America and Europe and explosive growth in new markets; however, Latin America faced a 9% decline, highlighting sharper regional contrasts that are being monitored closely. " " "

Ongoing expansion but with increased regional divergence—new markets continue to outperform while traditional markets like Latin America show caution, prompting refined strategic focus.

Contract Model Evolution and Revenue Volatility

Earlier periods (Q2–Q4 2024) mentioned overall market volatility indirectly, with little explicit focus on evolving contract models beyond discussions of general market dynamics and client behavior. "

In Q1 2025, a detailed discussion introduces a subscription-based framework for engineering, creativity, and automation services, aimed at shifting away from traditional billing. At the same time, rising macro uncertainties have led to noticeable revenue volatility, with a 5% sequential decline and adjusted full‐year guidance. " " " "

A new topic emerging in Q1 2025 that reframes traditional contract models—reflecting both an innovative pricing evolution and heightened revenue volatility amid macro challenges.

Client Concentration and Performance Risk

Through Q2–Q4 2024, Globant consistently reported a diversified client base—with strong contributions from top clients like Disney and deliberate efforts to widen high-value accounts—while noting some performance risks in sectors such as professional services. " " " "

Q1 2025 saw similar themes with a diversified top client base, though with some concerns: consumer-facing accounts experienced more pronounced slowdowns amid macro headwinds, emphasizing concentration risk in certain segments. " "

Stable focus on diversification remains, though external macro factors are intensifying performance risks particularly in consumer-related segments, calling for continued vigilance.

Regional Risks and Macroeconomic Uncertainties

In Q3 2024, the macro environment was beginning to stabilize after elections and falling interest rates, while Q4 2024 pointed to challenges in Latin America (tariffs, political turmoil) juxtaposed with robust prospects in new markets and Europe. " " " "

Q1 2025 reflects a more cautious tone—with rising recession probabilities in the U.S., renewed tariff impacts impacting spending (especially in Latin America), and slower pipeline conversion—resulting in more pronounced regional disparities across markets. " "

An intensification of macro risks is evident in Q1 2025, with increased caution over regional volatility compared to earlier periods, even as some regions maintain steady growth.

Operational Efficiency and Workforce Utilization

Q2–Q4 2024 discussions showed stable utilization rates hovering around 79–79.8%, with steady improvements in revenue per head through operational efficiencies and investments in AI-driven tools—all supported by enhanced workforce retention efforts. " " " "

In Q1 2025, utilization dipped slightly to 78.2% from prior levels, prompting additional cost-control measures and a continued focus on margin improvement, even as initiatives to optimize the workforce and invest in AI persist. "

Generally stable efficiency metrics with a slight downward shift in workforce utilization in Q1 2025, spurring tighter margin protection and operational streamlining.

Pricing Pressure and Competitive Dynamics

In Q2 2024, there was evidence of low single-digit pricing growth driven by a favorable service and geographical mix, and by Q4 2024, challenges in raising prices for cost-saving projects were noted due to stiff competition. " "

Q1 2025 remains vigilant on pricing; management stresses selective deal-making and avoiding low- or negative-margin deals to protect profitability, underlining a consistent competitive dynamic in a tough pricing environment. " "

Consistent pricing pressures remain across periods, with an ongoing strategy of selective engagement to maintain healthy margins amid competitive dynamics.