Globant (GLOB) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $2,454.9 million in 2025, with highest-ever free cash flow of $152.8 million in Q4, despite a 4.7% Q4 revenue decline; stabilization and improved client sentiment noted in H2 2025.

• Launched AI-native Pods and a token-based subscription model, reaching $20.6 million exit rate ARR in 2025, with gross margins of 45%-60%, and accelerating structural profitability improvements.

• Bookings hit a quarterly record in Q4, up 32.4% year-over-year, with a robust $3.4 billion pipeline and 73% of bookings from top 100 accounts.

• Organizational transformation around AI Studios and AI-native delivery model is accelerating pipeline conversion and client adoption.

• Operates as a pure play in digital and cognitive transformation, leveraging next-gen software and AI, with a global presence of 28,700+ employees across 35 countries.

Financial highlights

• Q4 2025 revenue: $612.5 million, above guidance but down 4.7% year-over-year; full-year revenue reached $2,454.9 million.

• Adjusted gross profit margin: 37.6% in Q4; adjusted operating margin: 15.5% in Q4 and 15.2% for the year.

• Adjusted net income: $68.9 million (11.3% margin) in Q4; Q4 net income was $42.997 million; full-year net income was $103.956 million.

• Free cash flow: $152.8 million in Q4 (record), $211.7 million for the year; cash and short-term investments: $250.3 million at year-end.

• Share repurchases: $50 million in Q4 as part of ongoing program; $75 million remains authorized.

Outlook and guidance

• 2026 revenue guidance: $2,460–$2,510 million (0.2%–2.2% year-over-year growth), with ~100 bps FX tailwind.

• Adjusted operating margin expected between 14%–15%; adjusted diluted EPS: $6.10–$6.50.

• Q1 2026 revenue guidance: $598–$604 million; adjusted operating margin: 14%–15%; adjusted diluted EPS: $1.44–$1.54.

• Targeting $60–$100 million AI Pods exit rate ARR for 2026, with margin improvement as the model scales.

• Positioned to benefit from a projected 73.5% five-year CAGR in generative AI market by 2028.