Key Takeaways:
Globant S.A. reported Q2 2026 revenue of $614.4 million, essentially flat year over year, and cut its full-year outlook from growth to a slight decline.
"This is not a hope. It is supported by the bookings we have already signed and the pipeline that is converting," Chief Executive Officer Martin Migoya told investors on the Feb. 26 earnings call, when the company guided fiscal 2026 revenue to $2.46 billion to $2.51 billion, implying 0.2 percent to 2.2 percent year-over-year growth. On May 14, Globant reaffirmed the midpoint at $2.462 billion to $2.508 billion. Roughly three months later, the forecast was reduced to a slight year-over-year decline.
The reversal triggered a securities investigation by Levi & Korsinsky, which is probing whether Globant made materially false or misleading statements about its revenue guidance and the strength of bookings supporting it. The firm is also examining the company's revenue recognition policy for hosted software access licenses. In its fiscal 2025 Form 20-F filed Feb. 27, Globant stated revenue from these license contracts is recognized at a point in time when the contract is signed, a treatment that under IFRS 15 generally applies to arrangements providing continuing hosted access over the service period.
Globant reported adjusted net income of approximately $60.3 million in the second quarter. Analyst downgrades and price-target cuts followed the guidance reduction, citing weaker near-term growth and pressure on the legacy time-and-materials business. The stock fell sharply after the Q2 release, and the investigation adds legal risk on top of the demand slowdown. Investors will watch whether the company provides updated bookings data on its next earnings call.
This article is for informational purposes only and does not constitute investment advice.
