Globant(GLOB 2.39%) delivered revenue of $614.2 million (up 4.5% year-over-year), a non-IFRS adjusted operating margin of 15%, and non-IFRS adjusted diluted EPS of $1.53. The firm implemented a business optimization plan, raised its pipeline to $3.7 billion (up 25% from last year), and deepened its shift toward a scalable, AI-driven subscription model and strategic partnerships with OpenAI and AWS. This summary highlights Globant’s operational transformation, accelerating AI adoption, and relative earnings stability amid persistent macro headwinds.
Subscription-based AI model drives pipeline surge at Globant
Globant’s AI subscription model, introduced just a quarter ago, generated 18 paying clients and contributed materially to the 25% year-over-year jump in the opportunity pipeline to $3.7 billion. This approach replaces legacy project billing with consumption-based, outcome-aligned contracts for AI agent-driven solutions, supported by proprietary technology such as AgenTik AI.
"It's actually 18 customers. 18. Sorry. Eighteen paying customers. And, yeah, look, the pipeline grew incredibly fast in terms of opportunities. We also were able to generate those 18 paying customers under the subscription model. And that has been very well received by our customers. What we do is on the back of all these customers who are doing AgenTik AI generating the code, the development, the need, the software that our customers need, and we're charging that with that subscription, which we are, you know, taking the risk on our side of supervising what the agents create. So supervision, we hope that that supervision with time will go down, and now it's at levels in which we want to be sure that we get the same quality as the traditional model that we have. So we're extremely excited with what we're seeing with our customers and the type of contracts. Sometimes, like, the large portion of the discussion with the procurement offices and so on because it's kind of a new place where they haven't they never heard about. But I'm very happy with the results. I'm very happy with the pipeline. How well received it was with our customers. Kind of they are used to or they understood the model of having a subscription and a limit on tokens."
-- Martín Migoya, Chief Executive Officer
The rapid early traction of subscription AI contracts signals both strong product-market fit and the potential for higher-margin, scalable recurring revenue, positioning Globant for durable, technology-led differentiation as enterprises accelerate digital reinvention.
Globant S.A. achieves cost base reset and margin resilience
Globant reduced headcount by about 1,000 (a 3% cut), consolidated office facilities, and implemented a business optimization plan with $47.6 million in charges, targeting $80 million in annualized savings. These actions offset FX headwinds, protected the company’s 15% non-IFRS operating margin, and redirected investment capacity to AI platform development.
"The primary goal of this plan is not only to protect our near-term profitability but more importantly, to create the capacity to increase our investments in strategic growth areas for the rest of 2025 and beyond. This plan ensures we have the right talent and resources to execute on our AI-centric strategy and capture future opportunities while managing our cost base in the current market. The main actions under this plan included a comprehensive review of our workforce to align skills and size with our strategic priorities, which resulted in a reduction of approximately 1,000 employees, or 3% of our workforce during Q2. A consolidation of our global office footprint based on an analysis of our facilities and lease contracts, and the strategic prioritization of our delivery centers to support future expansion. In connection with these actions, we recorded a one-time charge of $47.6 million in the second quarter. This plan should generate $80 million in annualized savings. These savings will be critical in protecting our profitability in the short term, despite FX headwinds in LatAm, and will also be reinvested to fuel our growth engines, specifically our AI platform development and our people."
-- Juan Ignacio Urthiague, Chief Financial Officer
This decisive action supports Globant's operating leverage and margin stability, while enabling further investment in core growth engines despite uncertain macro conditions and currency volatility.
Enterprise AI platform cements client stickiness and competitive moat
Globant’s Enterprise AI platform now integrates all major large language models (LLMs), offers granular cost/governance features, and delivers industry-specific, plug-and-play AI solutions, fostering deeper post-sale engagement with integration across all major hyperscalers.
"I think that the enterprise AI platform is like the golden path for generative AI adoption for our customers. It's an enterprise-class kind of integration of all the very, very complex AI ecosystem that is there to make it tangible, to make, you know, the things work. So you don't just marry with one LLM provider, but you can choose which to use. And then you can integrate all the workflows in your company and then you can connect with all the corporate information systems and then you can create your agents to generate those processes that companies need. So we are using enterprise AI for every single engagement on the AI bot side. We are using enterprise AI for many customers that are finding or trying to find a safe path to implement AI inside their corporations. So it's becoming, like, a key component as I mentioned on our last earnings call, is a key component for the creation of the AI ecosystem inside corporations where you don't just need to access LLMs, but you need to administer permissions. You need to administer access. You need to control costs of the things that you do. There's a lot of things that happen on the inner work of an enterprise-class implementation of AI, that is brought to life by enterprise AI. So for me, it's extremely essential. It can be mounted on top of all the big hyperscalers platforms. It can use many of those services, so it is very well integrated into our solutions. And I think, moving forward, it will be a key component of everything we do."
-- Martín Migoya, Chief Executive Officer
This platform-based, infrastructure-agnostic approach heightens client dependency, expands cross-sell/take-share opportunities among enterprise accounts.
Looking Ahead
A non-IFRS adjusted operating margin of at least 15% for the year, and non-IFRS EPS of at least $1.53. Full-year 2025 targets are revenue of at least $2.445 billion (1.2% year-over-year growth), and $6.12 non-IFRS EPS. Strategic focus remains on scaling the AI subscription model, accelerating conversion of the $3.7 billion pipeline, and reallocating optimization savings to AI-centric product investment; management explicitly noted continued caution due to macro uncertainty and longer sales cycles.
