Core Viewpoint - Globant has formed a global partnership with Unity to deliver advanced interactive technologies across various industries, including automotive, healthcare, and manufacturing [1][2]. Group 1: Partnership Details - As a Unity Service Partner, Globant will leverage Unity's real-time 3D technology and digital asset management solutions to enhance product development, optimize operations, and improve customer engagement [2][3]. - The collaboration will focus on creating digital twins for manufacturing, immersive training tools for healthcare, and advanced visualization platforms for automotive and industrial clients [2][4]. Group 2: Training and Development - A key aspect of the partnership includes a comprehensive training initiative where Globant will certify its engineers and designers on Unity's platform, ensuring access to a large pool of Unity-trained technologists [3][4]. - Ongoing investment in talent development and annual recertification will keep Globant's teams at the forefront of innovation using the Unity platform [3]. Group 3: Market Expansion - The partnership will extend across North America, EMEA, and APAC, utilizing Globant's delivery centers and market expertise to scale Unity-powered solutions globally [5]. - This collaboration aims to support Unity's expansion into new commercial markets by integrating Unity products into enterprise technology stacks and co-developing tailored solutions for clients [2][5]. Group 4: Company Background - Globant is a digitally native company with over 31,200 employees across 35 countries, recognized as a leader in AI services and media consultation [6][11]. - Unity provides a suite of tools for creating interactive experiences across various platforms, including mobile, PC, and extended reality [9].

Globant GLOB is currently in Phase 16 of its 18-phase Adhishthana cycle on the weekly chart. The stock is navigating through the Adhishthana Guna Triads, and the formation suggests a prolonged period of weakness. Here is how the cycle has unfolded so far and what investors need to keep in mind. Globant's Cycle on the Monthly Chart According to the Adhishthana Principles, our proprietary framework that combines quantitative signals with behavioral archetypes, Globant's monthly chart has been playing out almo ...

Key Takeaways Globant S.A. (GLOB) reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of $1.52. It reported earnings of $1.51 per share in the prior-year quarter. Revenues in the quarter totaled $614.2 million, beating the Zacks Consensus Estimate of $613 million. The top line rose 4.5% year over year. While the macroeconomic environment has led to longer sales cycles, the company's team remains sharply focused on converting this strong pipeline into ...

Core Viewpoint - Globant's recent financial report indicates that while the company is optimistic about future growth driven by AI, current performance metrics show only modest improvements, leading to investor disappointment [1][3][6]. Financial Performance - Total revenue for Q2 2025 was $614.2 million, a 5% increase from $587.5 million in Q2 2024, exceeding expectations [2]. - Adjusted earnings per share rose to $1.53, a 1% increase from $1.51 in the previous year, also beating expectations [2]. - Adjusted gross profit margin remained unchanged at 38.1%, while adjusted operating margin slightly decreased to 15% from 15.1% [2]. AI and Future Prospects - The company is focusing on generative AI adoption, with initiatives like AI Pods and AI Studios, but acknowledges that significant work remains to realize the full potential of these technologies [4]. - Globant's sales pipeline reached an all-time high of $3.7 billion, indicating strong future sales potential as more clients seek AI-driven solutions [5]. Market Reaction - Following the quarterly report, Globant's stock fell by 7%, reflecting investor dissatisfaction with the sales and earnings results, which did not meet high expectations for growth [6]. - Guidance for Q3 projects sales of $615 million, representing only a 0.1% year-over-year growth, and fiscal 2025 expectations of at least $2.445 billion, a mere 1.2% increase from 2024 [7]. Investor Sentiment - Investors remain skeptical about Globant's ability to return to a growth trajectory similar to its performance in 2021, with 2025 proving challenging for shareholders [8]. - There is still potential for Globant to capitalize on the generative AI boom, but shareholder patience is waning, necessitating a stronger performance from the company [9].

Applied Materials reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion. The chip equipment manufacturer reported third-quarter adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share, according to Benzinga Pro. Applied Materials expects fourth-quarter revenue of $6.7 billion, plus or minus $500 million, versus estimates of $7.33 billion. The company expects fourth-quarter adjusted earnings to be between $1.91 and $2.31 per share, versus estima ...

Core Insights - Soros Fund Management reported a total market value of $7.97 billion for Q2 2025, up from $6.70 billion in the previous quarter, reflecting a 19% increase [1][2] - The fund added 80 new stocks and increased holdings in 60 stocks, while reducing positions in 45 stocks and completely selling out of 87 stocks [1][2] Holdings Overview - The top ten holdings account for 28.11% of the total market value [1][2] - The largest position is in SPDR S&P 500 ETF put options (SPY.US, PUT) with approximately 537,500 shares valued at about $332 million, representing 4.17% of the portfolio, a significant increase of 168.75% from the previous quarter [3][4] - Other notable holdings include Smurfit WestRock (SW.US) with 7.48 million shares valued at approximately $323 million (4.05% of the portfolio) and First Solar call options (FSLR.US, CALL) with 1.64 million shares valued at about $271 million (3.40% of the portfolio) [3][4] Buying and Selling Activity - The top five purchases by percentage change in portfolio include Invesco QQQ Trust call options (QQQ.US, CALL), SPDR S&P 500 ETF put options (SPY.US, PUT), and Globant (GLOB.US) notes [4][6] - The top five sales by largest value include AstraZeneca (AZN.US), iShares 20+ Year Treasury ETF call options (TLT.US, CALL), and SPDR S&P 500 ETF (SPY.US) [5][6]

While Globant has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Globant (GLOB) came out with quarterly earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +0.66%. A quarter ago, it was expected that this information technology services pr ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was €614.2 million, representing a 4.5% year-over-year growth, with a 1% growth in organic constant currency and 0.5% sequential growth [7][32] - Non-IFRS adjusted operating margin was 15% for the quarter, maintaining stability despite foreign exchange headwinds [32] - Non-IFRS adjusted diluted EPS for the quarter was $1.53, an increase from $1.51 in the previous year [32] - Free cash flow for the quarter was negative $2.9 million, an improvement from negative $28 million in the same period last year [33] Business Line Data and Key Metrics Changes - The AI Pods model has gained traction, with 18 clients adopting the subscription model, contributing significantly to pipeline growth [10][41] - The company reported 49 clients generating over €10 million in annual revenue, up from 39 a year ago [20] - The revenue mix is diverse, with North America accounting for 54.1%, Latin America 19.7%, Europe 19.6%, and new markets 6.6% [18][19] Market Data and Key Metrics Changes - North America remains the largest market, but Latin America showed strong recovery with new records in bookings [18][19] - Europe is the fastest-growing region, up 8.1% sequentially, with major wins in aviation and financial services [19] - New markets grew 84% year-over-year, with the Middle East leading this surge [19] Company Strategy and Development Direction - The company is focusing on AI-driven solutions and has launched a new go-to-market strategy centered around AI industry studios and the 100 square accounts [34] - A business optimization plan was executed, resulting in a reduction of approximately 1,000 employees (3% of the workforce) to align with strategic priorities [35] - The company aims to ensure structural agility to compete effectively in an evolving landscape while delivering strong results for shareholders [8][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has extended sales cycles, but they remain optimistic about converting the pipeline into signed work [7][50] - The company expects revenue for 2025 to be at least $2.445 billion, representing 1.2% year-over-year growth [38] - Management expressed cautious optimism regarding the recovery in North America and Latin America, with signs of stabilization and growth [72][74] Other Important Information - The company has strengthened its position in the robotics and AI ecosystem by investing in InOrbit, enhancing capabilities in advanced orchestration of robotic systems [17] - A multiyear collaboration with OpenAI and a strategic partnership with Amazon Web Services were announced to enhance AI adoption [15][30] Q&A Session Summary Question: Inquiry about the AI-based delivery model and subscription clients - Management confirmed that 18 clients have adopted the subscription model, which has been well received and is generating significant pipeline growth [41][44] Question: Discussion on optimization progress and headcount reduction - Management indicated that additional reductions are expected in Q3, with most of the optimization plan already implemented [52][53] Question: Performance of the creative pillar relative to other studios - Management noted that the creative pillar has been growing nicely and is not expected to be significantly impacted by AI [56][60] Question: Stickiness of the enterprise AI platform compared to traditional engagements - Management stated that the enterprise AI platform is becoming essential for clients, enhancing engagement and reducing churn [66][68] Question: Details on larger deals in the pipeline - Management highlighted significant deals in the financial services and healthcare sectors in the US, indicating a positive trend in the pipeline [71][72] Question: Assumptions around revised growth outlook and conservatism - Management explained that the revised guidance reflects stabilization in Latin America and a positive outlook for the US market [77][78] Question: North American deceleration and pipeline conversion trends - Management acknowledged a sequential decline in North America but expressed optimism about pipeline growth and deal closures [94][95]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was €614.2 million, representing a 4.5% year-over-year growth, with a 1% growth in organic constant currency and 0.5% sequential growth [6][30] - Non-IFRS adjusted operating margin was 15% for the quarter, maintaining stability despite foreign exchange headwinds [30] - Non-IFRS adjusted diluted EPS for the quarter was $1.53, an increase from $1.51 in the previous year [30] - Free cash flow for the quarter was negative $2.9 million, an improvement from negative $28 million in the same period last year [31] Business Line Data and Key Metrics Changes - The AI Pods subscription model has gained traction, with 18 clients adopting this new model, contributing significantly to recent pipeline growth [8][41] - The company is focusing on high-value clients in sectors such as healthcare, financial services, consumer packaged goods (CPG), and gaming [6][30] Market Data and Key Metrics Changes - North America accounted for 54.1% of revenue, Latin America 19.7%, and Europe 19.6%, with Europe being the fastest-growing region at 8.1% sequentially [16] - New markets grew 84% year-over-year, currently representing 6.6% of total revenue, with the Middle East leading this surge [17] Company Strategy and Development Direction - The company is implementing a business optimization plan to align workforce skills with strategic priorities, resulting in a reduction of approximately 1,000 employees or 3% of the workforce [33] - The focus is on building a structurally agile organization to compete effectively in an evolving landscape while delivering strong results for shareholders [6][30] - The company aims to enhance its AI capabilities through partnerships with major AI leaders like OpenAI and AWS, integrating advanced models into its offerings [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding pipeline conversion, noting that while the macro environment remains uncertain, there are positive signs of recovery in North America and Latin America [48][72] - The company expects revenue for the full year 2025 to be at least $2.445 billion, representing a 1.2% year-over-year growth [35] Other Important Information - The company recorded a one-time charge of $47.6 million in Q2 due to the optimization plan, which is expected to generate $80 million in annualized savings [33] - The AI Pods model is designed to provide guaranteed time and cost savings, shifting the value proposition to concrete results [8][30] Q&A Session Summary Question: Can you provide more details on the AI-based delivery model and subscription side? - The company has 18 paying customers under the subscription model, which has been well received, generating code and software needed by clients [41][42] Question: How far along are the initial changes from the optimization plan? - Additional reductions are expected in Q3, with most of the plan already implemented [50][51] Question: How is the creative performance of the GUT relative to other studios? - The creative pillar has been growing nicely, with no significant impact from AI on high-level strategic work [56][59] Question: Is the enterprise AI platform creating enhanced stickiness with customers? - The enterprise AI platform is becoming essential for clients, integrating complex AI ecosystems and enhancing client engagement [64][66] Question: Can you discuss the revised growth outlook and assumptions? - The revised outlook reflects stabilization in Latin America and a positive trend in the pipeline, with expectations for recovery in the US market [78][80]

Market Opportunity & Growth - The total market for generative AI is projected to reach a five-year CAGR of 73.5% by 2028[5] - Worldwide IT services spending is expected to reach $2.1 trillion by 2027[6] - 85% of CEOs reported increased investments in digital capabilities[6] - The digital business services market is projected to reach $702 billion by 2027[6] - 90% of service providers will use generative AI for software development services by 2027[7] - Global spending on product engineering and operational technology services is forecasted to reach $334 billion by 2027[7] Financial Performance - LTM Q2'25 total revenue reached $2.5 billion[45] - The revenue CAGR from 2014 to 2024 was 28.3%[45] - LTM Q2'25 Revenue per IT Professional was $89.9K[45] - Q2'25 Adjusted Gross Profit Margin was 38.1%[45] - Q2'25 Adjusted Profit from Operations Margin was 15.0%[45] - 93.3% of LTM Q2'25 Revenue came from existing customers in LTM Q2'24[45]