Globant (NYSE: GLOB) is an information technology services company that focuses on digital and cognitive transformation for other businesses. On August 14, 2026, the analyst firm Wedbush downgraded Globant to a Neutral rating. Wedbush also lowered its price target on the stock to $37.00, when the stock price was $40.99.
This rating change occurred after Globant reported its second-quarter financial results. The company's earnings per share (EPS), which is its profit divided by the number of shares, came in at $1.40. As highlighted by Zacks, this figure missed the consensus estimate of $1.49 and was lower than the $1.53 reported a year ago.
However, the company's revenue performance was positive. Globant posted revenues of $614.42 million for the quarter, which was slightly above analyst expectations. This marks the fourth consecutive quarter that the company has generated more revenue than predicted, showing continued growth in its total sales.
Globant also improved its financial health, reporting a free cash flow of $12.60 million. Free cash flow is the cash a company has left after paying for its operations and investments. As noted by PR Newswire, this is a significant turnaround from a negative $2.90 million in the same period last year.
A major growth driver for Globant is its Glob.AI platform. Its Annual Recurring Revenue (ARR), a measure of predictable income, reached $52.80 million, a 61% increase from the prior quarter. The company expects this to exceed $110.00 million by the end of 2026, indicating strong future growth.
