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 support for that ambition. Globant puts the Glob.AI pipeline at $436.8 million, and says the platform has been adopted in 45% of its top 20 accounts.

What an AI Pod actually is

Globant’s AI Pods are autonomous service units powered by AI and steered by human experts. Clients pay for what gets delivered, not for the hours spent delivering it. That model also turns project revenue into something closer to a subscription, which is why Globant reports Glob.AI performance in ARR terms.

New leadership and big-name partners

In August 2026, Globant named Sarab Narang as CEO of Glob.AI. Narang previously held executive roles at ServiceNow and AWS. That hire followed the appointment of Fernando Matzkin as chief operating officer.

Globant works with OpenAI, Anthropic, and Google Cloud, among others. It also offers a MuleSoft AI Pod built with Salesforce.

What this means for Globant and the sector

Glob.AI’s ARR is growing quickly, but it remains a small slice of a company guiding to more than $2.4 billion in annual revenue. Even hitting the $110 million target would leave the traditional business carrying most of the load.

For investors, the key metrics to watch are whether Glob.AI actually reaches its year-end ARR goal, and how much of that $436.8 million pipeline converts into signed, recurring contracts. Holding adjusted operating margins in the 13.5% to 14.5% range during a revenue slowdown would be an early sign the model has some resilience.

Globant has long-standing relationships with large enterprise clients, and 45% of its top 20 accounts already use Glob.AI.