Why Mizuho Still Likes Globant (GLOB) Despite a Lower Price Target

Core Viewpoint - Globant S.A. is considered a cheap AI stock to buy in 2026, despite a lowered price target from Mizuho analyst Dan Dolev, who maintains an Outperform rating [1]. Financial Performance - For Q4 2025, Globant reported revenue of $612.5 million, exceeding guidance but down 4.7% year-over-year. Non-IFRS adjusted diluted EPS was $1.54, compared to $1.75 in the prior-year quarter, with a non-IFRS adjusted operating margin of 15.5% [2]. - For the full year 2025, revenue increased by 1.6% to $2.4549 billion, and non-IFRS adjusted diluted EPS was $6.14 [2]. Management Insights - Management attributed the quarter's performance to improving demand conditions and execution discipline. CEO Martín Migoya mentioned a shift from a traditional seats model to a token-based intelligent subscription approach [3]. - CFO Juan Urthiague noted an improvement in client sentiment, strong operational discipline, a pipeline exceeding $3 billion, and record quarterly free cash flow of $152.8 million [3]. 2026 Guidance - For 2026, Globant guided full-year revenue between $2.46 billion and $2.51 billion, with non-IFRS adjusted diluted EPS projected between $6.10 and $6.50, indicating a relatively in-line outlook [4]. Company Overview - Globant S.A. is a digital native technology services company that assists enterprises with digital transformation, software engineering, design, and AI-focused solutions across various industries [4].