Globant bets on an AI overhaul to recover from an 80% selloff

Globant has a strange new strategy. It wants to use the technology that crushed its stock to save the company. The Argentine software firm has lost 80% of its market cap since early 2025, according to Bloomberg. Investors fear generative AI will hollow out the IT consulting work that made Globant one of Latin America’s biggest tech success stories. Management’s answer is to lean harder into AI, not away from it. The numbers behind the pivot Globant shares, listed on the NYSE as GLOB, have fallen roughly 39% over the past year. They now trade around $34 to $40, after peaks above $70. Second-quarter 2026 revenue came in at $614.4 million, flat compared with a year earlier. Globant also trimmed its full-year 2026 revenue guidance to a range of $2.428 billion to $2.462 billion. The company expects adjusted operating margins between 13.5% and 14.5%. The bright spot is Glob.AI, the company’s AI platform. Its annual recurring revenue reached $52.8 million as of June 2026, up from $32.8 million in March. That works out to growth of about 60% in roughly one quarter. Globant is aiming higher still. It targets at least $110 million in Glob.AI ARR by the end of 2026. The pipeline offers some s...