Q2 2026 GLOBANT S.A. Earnings Call Transcript
Key Points
- Glob AI ARR surged 60% quarter-over-quarter to $52.8 million, with a raised year-end target of at least $110 million, indicating strong adoption of the new AI-native delivery model.
- AI Pods deliver gross margins approximately 10 percentage points higher than traditional delivery, improving profitability as the model scales.
- Revenue per head reached $95,800 on a run-rate basis, up 9.7% year-over-year, reflecting enhanced productivity and efficiency.
- Top 20 and Top 50 client cohorts grew 6.6% and 6.9% year-over-year, respectively, with 45% of Top 20 accounts adopting AI Pods, showing strong client penetration.
- The launch of the Glob AI platform and strategic partnerships with Anthropic, OpenAI, and Vercel expand market reach and open new revenue streams beyond traditional IT services.
- Full-year 2026 revenue guidance was revised downward to $2,428-$2,462 million from $2,462-$2,508 million, reflecting a challenging macro environment.
- New markets segment revenue declined 17.7% year-over-year, dragging overall growth by 115 basis points due to geopolitical conflicts and project delays.
- North America revenue contracted 2.4% year-over-year, with longer decision cycles and discretionary spending slowdowns impacting growth.
- Adjusted operating margin fell to 13.2%, below the guided range, pressured by FX headwinds (e.g., Colombian peso appreciation) and lower utilization.
- The company initiated a business optimization program with a $32.3 million one-time charge in Q2 and expects additional charges in Q3, indicating cost pressures and workforce restructuring.
Good afternoon and welcome to Globent's second quarter 2026 earnings conference call. I am Arturo Langa, Investor Relations Officer at Globent. All participants on this call will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded and streamed live on YouTube. By now, you should have received a copy of the earnings release. If you have not, a copy is available on our website, investors.globent.com. We will begin with remarks by our Chief Executive Officer, Martin Mikosha. Our Chief Technology Officer, Diego Tartara, and our Chief Financial Officer, Juan Urtiague, followed by a Q&A where they will be joined by our Chief Revenue Officer, Fernando Matzkin. Before we begin, I would like to remind you that some of the comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answers to some of your questions.
Such statements are subject to the risks and uncertainties as described in the
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