Globant SA (GLOB) Demand trends remain sluggish, with FX and re investments weighing on margins

Equity Research 13 August 2026 | 7:15PM EDT

Globant SA (GLOB) Demand trends remain sluggish, with FX and re-investments weighing on margins

GLOB 12m Price Target: $52.00 Price: $40.99 Upside: 26.9% NEUTRAL James Schneider, Ph.D. Key stock takeaways: We expect the stock to trade lower following | Goldman Sachs & Co. LLC a lowered outlook with incremental margin headwinds in 2026, Luya You consistent with the deteriorating demand environment and muted | Goldman Sachs & Co. LLC commentary from peers. We believe investor expectations were bearish heading into the quarter given ongoing macro uncertainty Khalil Fenina | Goldman Sachs & Co. LLC pressuring some of the company’s verticals. We believe the near-term business headwinds the company is seeing are broadly consistent with those being seen by peers. On the positive side, we Key Data _____________________________________ Market cap: $1.8bn were encouraged by the tailwinds Globant expects from its “AI Pods” Enterprise value: $2.1bn 3m ADTV: $71.6mn business, where it expects to achieve an exit run rate ARR of Argentina $110mn (up from $60-$100mn) by the end of 2026. In the long run, Americas Semiconductors & IT Services M&A Rank: 3 we believe Globant can eventually capitalize on an extensive GS Forecast __________________________________ pipeline of next-generation AI-led project work. However, we 12/25 12/26E 12/27E 12/28E

believe it may take several quarters before the end markets and Revenue ($ mn) New Revenue ($ mn) Old 2,454.9 2,454.9 2,445.6 2,480.1 2,525.8 2,621.2 2,643.6 2,842.2 clients to which Globant is most heavily exposed return to a EBITDA ($ mn) EBIT ($ mn) favorable growth profile. EPS ($) New EPS ($) Old Commentary from the call: P/E (X) Dividend yield (%) -- -- -- -- Net debt/EBITDA (X) 0.2 0.4 0.4 0.4 n Revenue outlook: Globant lowered its revenue guidance for 2026 to (1.1%) to 0.3% (down from 0.3% - 2.2% prior), which is 6/26 9/26E 12/26E 3/27E EPS ($) positively impacted by a ~70bps FX tailwind (down from GS Factor Profile ______________________________ ~100bps prior). The company noted incremental macro Growth

pressures - including energy prices - driving a slowdown in client Financial Returns

demand, particularly in transformation projects as clients look Multiple to project their own margin structures. Integrated n Demand and bookings commentary: Management sees a weaker demand environment on the margin, which it believes is Percentile 20th 40th 60th 80th 100th

mainly being driven by macro pressures, including higher oil GLOB relative to Americas Coverage

prices and overall geopolitical uncertainty. Management noted GLOB relative to Americas Semiconductors & IT Services

that 16 out of its top 20 clients are growing, but with pressure in Source: Company data, Goldman Sachs Research estimates. See disclosures for details. the professional services and travel verticals, as well as clients in the Middle East. However, the company continues to see solid

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Globant SA (GLOB)

Globant SA (GLOB) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since May 16, 2025 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets ,123.0 1,297.8 P/E (X) Net PP&E EV/EBITDA (X) 8.0 3.6 3.5 3.4 Net intangibles EV/sales (X) 1.9 0.8 0.8 0.8 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) Other long-term assets 1,881.2 1,880.6 1,880.6 1,880.6 EV/DACF (X) Total assets 3,318.2 3,246.1 3,399.6 3,571.7 CROCI (%) ROE (%) Accounts payable Net debt/EBITDA (X) 0.2 0.4 0.4…