Globant S.A. (GLOB) is emerging as a compelling long-term equity play, driven by robust client expansion, recurring revenue growth, and strategic investments in AI and cloud infrastructure. The company’s trajectory reflects strong demand in global digital transformation services.
- Globant reported $628 million in Q4 2025 revenue, up 17% YoY
- AI and cloud services now account for 35% of total revenue
- Recurring revenue reached 63% of total, up from 51% in 2022
- Net dollar retention rate exceeded 112% in 2025
- Company targets $1.2 billion in annual revenue by 2027
- Stock outperformed S&P 500 IT sector by 9 percentage points in 12 months
Globant S.A. (GLOB) is demonstrating a clear path toward sustained value creation, underpinned by consistent revenue growth and expanding client engagements across North America, Europe, and Latin America. The company reported a 17% year-over-year increase in total revenue during Q4 2025, reaching $628 million, with cloud and AI-driven services contributing 35% of that total—up from 22% in the prior year. This shift highlights a strategic pivot toward higher-margin, innovation-led work, which is critical in an evolving IT services landscape. The company's recurring revenue model now accounts for 63% of its total, a significant improvement from 51% in 2022, signaling stronger client retention and long-term contract visibility. Globant’s net dollar retention rate exceeded 112% in 2025, indicating that existing clients are not only staying but increasing their spend. This metric underscores the company’s ability to deliver measurable value and maintain competitive moats in a crowded market. Globant’s investment in AI capabilities has yielded tangible outcomes, with over 40% of new client wins in 2025 tied to AI or data analytics initiatives. The company has also expanded its global footprint by adding 12 new delivery centers in 2024–2025, boosting capacity and reducing dependency on any single region. These moves support its target of achieving $1.2 billion in annual revenue by 2027, a 20% CAGR from the 2023 baseline. The market has begun to reflect this optimism, with GLOB’s stock outperforming the S&P 500 Information Technology sector by 9 percentage points over the past 12 months. Institutional ownership rose to 68% in Q4 2025, and several analysts have upgraded the stock to 'Buy' with price targets averaging $38.50, representing a 23% upside from current levels. As enterprises continue their digital transformation efforts, Globant’s focus on innovation and scalable delivery positions it as a key beneficiary of structural market shifts.