Q2 FY2026
Filed Aug 13, 2026Globant reported Q2 2026 revenue of $614.4 million, generally unchanged year over year, while IFRS and adjusted operating margins declined and free cash flow reached $12.6 million.
Revenue was generally unchanged from the prior-year quarter and both IFRS and non-IFRS adjusted gross and operating margins were below prior-year levels. IFRS diluted EPS returned to $0.04 from $(0.05), free cash flow was $12.6 million versus negative $2.9 million, and the company maintained third-quarter and full-year revenue outlooks that include year-over-year decline ranges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $614.4 million | – | remaining generally unchanged from the prior year quarter |
| Gross profitother | 208,236 (In thousands of U.S. dollars) | – | – |
| IFRS Gross Profit Marginother | 33.9% | – | – |
| Non-IFRS Adjusted gross profitnon-GAAP | 224,222 (In thousands of U.S. dollars) | – | – |
| Non-IFRS Adjusted Gross Profit Marginnon-GAAP | 36.5% | – | – |
| Selling, general and administrative expensesother | (154,343) (In thousands of U.S. dollars) | – | – |
| Business Optimization Costsother | (32,346) (In thousands of U.S. dollars) | – | – |
| Profit from operationsother | 19,855 (In thousands of U.S. dollars) | – | – |
| IFRS Profit from Operations Marginother | 3.2% | – | – |
| Non-IFRS Adjusted profit from operationsnon-GAAP | 80,859 (In thousands of U.S. dollars) | – | – |
| Non-IFRS Adjusted Profit from Operations Marginnon-GAAP | 13.2% | – | – |
| Net income for the periodother | 3,607 (In thousands of U.S. dollars) | – | – |
| Net income attributable to owners of the Companyother | 1,767 (In thousands of U.S. dollars) | – | – |
| IFRS Diluted EPSother | $0.04 | – | – |
| Non-IFRS Adjusted net incomenon-GAAP | 60,349 (In thousands of U.S. dollars) | – | – |
| Non-IFRS Adjusted net income marginnon-GAAP | 9.8% | – | – |
| Non-IFRS Adjusted Diluted EPSnon-GAAP | $1.40 | – | – |
| Cash flows from operating activitiesother | 30,217 (In thousands of U.S. dollars) | – | – |
| Capital expendituresother | (17,584) (In thousands of U.S. dollars) | – | – |
| Free cash flowother | $12.6 million | – | – |
| Six-month revenueother | 1,221,502 (In thousands of U.S. dollars) | – | – |
| Six-month profit from operationsother | 71,527 (In thousands of U.S. dollars) | – | – |
| Six-month net income for the periodother | 42,377 (In thousands of U.S. dollars) | – | – |
| Six-month IFRS Diluted EPSother | 0.89 | – | – |
| Six-month Non-IFRS Adjusted Diluted EPSnon-GAAP | 2.89 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaTop country: US | 52.8% of revenues | – | – |
| Latin AmericaTop country: Argentina | 20.8% of revenues | – | – |
| EuropeTop country: Spain | 20.9% of revenues | – | – |
| New MarketsTop country: Saudi Arabia; represents Asia, Oceania and the Middle East | 5.5% of revenues | – | – |
Third quarter 2026 and fiscal year 2026 outlook
- RevenueThird quarter 2026: $607 million to $615 million, representing a 1.6% to 0.3% year-over-year decline. Fiscal year 2026: $2,428 million to $2,462 million, implying a 1.1% year-over-year decline to 0.3% year-over-year revenue growth.
- NoteThird quarter 2026 Non-IFRS Adjusted Profit from Operations Margin: 13.5% to 14.5%.
- NoteThird quarter 2026 Non-IFRS Adjusted Diluted EPS: $1.43 to $1.53, assuming an average of 43.2 million diluted shares outstanding during the third quarter.
- NoteThird quarter outlook includes a positive FX impact of 25 basis points.
- NoteFiscal year 2026 Non-IFRS Adjusted Profit from Operations Margin: 13.5% to 14.5%.
- NoteFiscal year 2026 Non-IFRS Adjusted Diluted EPS: $5.75 to $6.15, assuming an average of 43.6 million diluted shares outstanding during 2026.
- NoteFiscal year 2026 expected growth includes a positive FX impact of 70 basis points.
- NoteGlob.AI ARR: no less than $110 million exiting 2026.
Capital returns
- The Company invested $25.0 million during the second quarter, completing its original share repurchase program.
- As of June 30, 2026, the Company had $125.0 million available for repurchase under its new share repurchase authorization.
What drove it
- Glob.AI ARR reached $52.8 million in the second quarter, up 61% quarter-over-quarter.
- Management cited accelerating market adoption of higher-margin AI Pods and the Glob.AI platform.
- The company opened Glob.AI to the entire market, offering a platform on which enterprises can deploy AI Pods and pay on output or consumption rather than hours.
- Top 50 clients increased 6.9% year-over-year.
- Business optimization costs were related primarily to workforce resizing and office reductions.
- Globant reported 27,411 Globers, including 25,632 technology, design and innovation professionals.
Concerns
- IFRS Gross Profit Margin was 33.9%, compared to 35.4% in the second quarter of 2025.
- Non-IFRS Adjusted Gross Profit Margin was 36.5%, compared to 38.1% in the second quarter of 2025.
- Non-IFRS Adjusted Profit from Operations Margin was 13.2%, compared to 15.0% in the second quarter of 2025.
- Non-IFRS Adjusted Diluted EPS was $1.40, compared to $1.53 in the second quarter of 2025.
- Third-quarter revenue outlook represents a 1.6% to 0.3% year-over-year decline.
- During the twelve months ended June 30, 2026, Globant served 904 customers with revenues over $100,000, compared with 981 in Q2 2025.
- Customers with more than $1 million in revenues in the last twelve months were 331, compared with 339 in Q2 2025.
What to watch
- Execution against the third-quarter 2026 revenue range of $607 million to $615 million and the 13.5% to 14.5% Non-IFRS Adjusted Profit from Operations Margin range.
- Glob.AI ARR progression toward management's expectation of no less than $110 million exiting 2026.
- Adoption of AI Pods and Glob.AI, which management characterized as higher-margin offerings.
- Revenue concentration, with the top customer, top five customers and top ten customers representing 8.9%, 21.6% and 30.6% of Q2 revenue, respectively.
- The effects of the Business Optimization Programs initiated in April 2026 and the company's ability to maintain resource utilization rates and productivity levels.
Balance sheet and cash flow
- Cash and cash equivalents were 163,766 (In thousands of U.S. dollars) as of June 30, 2026, compared to 243,742 (In thousands of U.S. dollars) as of December 31, 2025.
- Cash and cash equivalents and Short-term investments were $168.8 million as of June 30, 2026.
- Current borrowings were 19,364 (In thousands of U.S. dollars) as of June 30, 2026, compared to 19,666 (In thousands of U.S. dollars) as of December 31, 2025.
- Non-current borrowings were 402,591 (In thousands of U.S. dollars) as of June 30, 2026, compared to 347,040 (In thousands of U.S. dollars) as of December 31, 2025.
- Q2 cash flows from operating activities were 30,217 (In thousands of U.S. dollars), compared to 21,878 (In thousands of U.S. dollars).
- Q2 capital expenditures were (17,584) (In thousands of U.S. dollars), compared to (24,735) (In thousands of U.S. dollars).
- Q2 cash flows from financing activities were (39,213) (In thousands of U.S. dollars), compared to 103,757 (In thousands of U.S. dollars).
- Q2 net increase/decrease in cash & cash equivalents was (31,130) (In thousands of U.S. dollars), compared to 56,872 (In thousands of U.S. dollars).
Analysis
Globant reported Q2 revenue of $614.4 million, described as generally unchanged from the prior-year quarter. Its geographic mix was 52.8% North America, 20.8% Latin America, 20.9% Europe and 5.5% New Markets. The top 50 clients increased 6.9% year over year, while the company served 904 customers with more than $100,000 of trailing-12-month revenue and had 331 accounts generating more than $1 million of annual revenue, compared with 981 and 339, respectively, in Q2 2025.
Profitability showed a mixed pattern. IFRS Profit from Operations Margin improved to 3.2% from 1.0%, and IFRS diluted EPS was $0.04 versus $(0.05). However, IFRS Gross Profit Margin was 33.9% versus 35.4%, Non-IFRS Adjusted Gross Profit Margin was 36.5% versus 38.1%, and Non-IFRS Adjusted Profit from Operations Margin was 13.2% versus 15.0%. Adjusted diluted EPS was $1.40, compared with $1.53. Q2 included 32,346 in Business Optimization Costs, which the company said were primarily related to workforce resizing and office reductions.
Cash conversion improved in the reported quarter. Cash flows from operating activities were 30,217, capital expenditures were (17,584), and management reported free cash flow of $12.6 million versus negative $2.9 million a year ago. The company invested $25.0 million to complete its original repurchase program and had $125.0 million available under its new authorization. Cash and cash equivalents and Short-term investments were $168.8 million as of June 30, 2026, while current and non-current borrowings were 19,364 and 402,591, respectively.
The outlook calls for third-quarter revenue of $607 million to $615 million, representing a 1.6% to 0.3% year-over-year decline, and fiscal-year revenue of $2,428 million to $2,462 million, implying a 1.1% year-over-year decline to 0.3% growth. The company guided to a 13.5% to 14.5% Non-IFRS Adjusted Profit from Operations Margin in both periods. Management is positioning Glob.AI and AI Pods as a change in delivery and pricing, and stated that Glob.AI ARR was $52.8 million in Q2 and is expected to be no less than $110 million exiting 2026.
Management, verbatim
Glob.AI ARR reached $52.8 million in the second quarter, up 61% quarter-over-quarter, and we now expect no less than $110 million exiting 2026.
Martín Migoya, CEO and co-founder
In the second quarter of 2026, Globant demonstrated resilient execution, generating $614.4 million in revenue—within our guided range—and delivering record free cash flow generation for the first half of the year.
Juan Urthiague, CFO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of Q2 2026 actual results with prior guidance is available.
- No segment revenue in U.S. dollars was reported. Geographic information was reported as percentages of revenue only.
- No Q2 2026 tax rate was reported.
- No dividend amount or dividend policy update was reported.
- No total debt line item was reported.
- No IFRS or non-IFRS gross-margin guidance was reported.
- No operating-expense guidance was reported.
- No quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to IFRS measures was provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.