Key Takeaways:
- Globant is executing a comprehensive AI-first transformation strategy through its AI Pods subscription model, Enterprise AI platform, and industry-specific AI studios.
- Globant stock could reasonably reach $75/share by December 2027, based on our valuation assumptions.
- This implies a total return of 34% from today’s price of $56/share, with an annualized return of 13.5% over the next 2.3 years.
Globant (GLOB) is setting new benchmarks in AI-powered software development through strategic platform innovation that addresses enterprise AI adoption challenges, offers subscription-based delivery models, and provides digital transformation services across global markets.
Core offerings include traditional software development services, an AI Pods subscription model powered by Agentic AI, a Globant Enterprise AI platform providing enterprise-grade AI governance and deployment, and industry-specific AI studios covering creative, enterprise, and technology verticals.
The digital services leader delivered Q2 revenue of $614.2 million, up 4.5% year over year, with an operating margin of 15%.
Globant demonstrates strategic execution across AI transformation initiatives under the leadership of CEO Martin Migoya and the management team.
The company launched an AI Pods subscription model with 18 paying customers after just one quarter, and achieved a record pipeline of $3.7 billion, representing 25% year-over-year growth.
It also strengthened strategic partnerships with OpenAI and AWS, while maintaining strong customer relationships with 49 clients that generate over $10 million in annual revenue.
GLOB stock went public in 2014 and has delivered 400% returns to shareholders. However, it is also down 84% from all-time highs, allowing you to buy the dip.
Here’s why Globant stock could deliver solid returns through 2027 as it capitalizes on enterprise AI transformation opportunities while scaling its subscription-based delivery model across diverse industry verticals.
See analysts’ full growth forecasts and estimates for Globant stock (It’s free) >>>
What the Model Says for Globant Stock
We analyzed the upside potential for Globant stock using valuation assumptions based on its AI transformation capabilities and market positioning opportunities across enterprise software development and AI-powered services.
Analysts recognize opportunity ahead for Globant stock given its proven execution track record, technology innovation leadership, and systematic approach to building competitive advantages.
Globant’s diversified platform strategy provides multiple growth vectors, while the AI Pods initiative validates that subscription-based delivery models can drive customer value creation and margin improvement in the competitive software development landscape.
Based on estimates of 4.4% annual revenue growth, 15.3% operating margins, and a normalized P/E valuation multiple of 10.0x, the model projects Globant stock could rise from $56/share to $75/share.
That would be a 34% total return, or a 13.5% annualized return over the next 2.3 years.
Value Globant stock with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for GLOB stock:
1. Revenue Growth: 4.4%
Globant grew revenue by 4.5% in Q2, despite challenging macroeconomic conditions and extended sales cycles across its enterprise customers.
We used a 4.4% forecast, reflecting Globant’s measured approach during the market transition while building foundations for accelerated growth through AI-powered service delivery and the adoption of a subscription model.
2. Operating Margins:15%
Globant achieved a Q2 adjusted operating margin of 15% while investing in AI platform development and navigating FX headwinds, demonstrating pricing discipline and effective cost management capabilities.
The company targets sustainable margin maintenance through business optimization, aiming to generate $80 million in annualized savings.
Notably, the AI Pods vertical delivers higher margins than traditional projects, and operational leverage is achieved as the subscription model scales.
3. Exit P/E Multiple: 10x
Globant stock trades at compressed multiples reflecting current market conditions and growth deceleration, while the company positions for future AI-driven expansion.
We use conservative valuation levels given Globant’s transformation execution, technology innovation capabilities, and systematic approach to building competitive advantages through AI-powered delivery models and enterprise platform development.
Long-term competitive advantages from AI expertise, global delivery capabilities, and customer relationships should support reasonable valuations as the company capitalizes on the acceleration of enterprise AI adoption and scales its subscription-based platform across international markets.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
Different scenarios for Globant stock through 2030 show varied outcomes based on AI transformation execution and enterprise services market conditions: (these are estimates, not guaranteed returns):
- Low Case: Slower AI adoption and continued macro headwinds → 2.3% annual returns
- Mid Case: Successful AI Pods scaling and market recovery → 7% annual returns
- High Case: Strong AI transformation momentum and accelerated growth → 12% annual returns
Even in the conservative case, Globant stock offers positive returns, supported by its market positioning and ability to execute complex enterprise transformations.
The upside scenario for GLOB stock could deliver attractive performance if it successfully scales AI Pods adoption while maximizing enterprise AI platform opportunities and achieving targeted market expansion across key verticals.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
