As Tariffs Dent Earnings, Global Suffers Record Intraday Drop

Software firm Globant SA experienced its steepest intraday stock decline on record after attributing disappointing first-quarter results to the lingering effects of U.S. trade tariffs. On Friday, the company’s shares tumbled as much as 33.7%, falling to $88.03 — the lowest single-day drop since Globant went public in 2014 — before regaining a portion of those losses later in the day.

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The company’s stock has had a rough ride in 2025, down more than 53% on a total return basis, according to Bloomberg data. That performance ranks Globant dead last among information technology services firms in the Russell 1000 index this year. However, looking at the past decade, Globant stands out as one of the sector’s top-performing stocks, with massive gains for long-term shareholders.

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Globant revised its revenue forecast significantly lower. The company now expects only 2% revenue growth for 2025, down from a previous projection of at least 9.1%. Additionally, both first-quarter revenue and adjusted earnings per share came in below Wall Street expectations.

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CEO Martin Migoya pointed to the growing economic uncertainty tied to President Donald Trump’s tariffs as the main driver behind the disappointing numbers. He warned that the tariffs have increased the likelihood of a U.S. recession in 2025, which in turn has affected customer behavior and reduced project momentum.

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“Many of our clients have been impacted by the rising uncertainty caused by the trade tariffs,” Migoya said during Thursday’s earnings call. “We noticed a slower rate of turning pipeline opportunities into actual projects in the U.S. market, and some countries in Latin America also experienced growth below our expectations.”

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Despite the current challenges, Migoya expressed optimism about Globant’s long-term prospects. He emphasized the company’s continued investment in artificial intelligence and solid underlying fundamentals as reasons to remain confident about future growth. Globant has been expanding its capabilities in AI as part of its strategy to stay competitive and deliver high-value services in a fast-evolving tech landscape.

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Globant’s current downturn contrasts with its remarkable performance over the past decade. The company, which was founded in Argentina, has delivered a total return of 478% to shareholders in the last ten years. During that time, Globant has grown significantly on a global scale. Its employee base has increased tenfold, reaching over 31,000 employees as of last year, based on its public filings.

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Following the earnings report, some Wall Street analysts adjusted their views on the stock. James Schneider from Goldman Sachs and Arvind Ramnani of Piper Sandler both downgraded Globant from “buy” to “neutral.” Despite the weak quarter, however, about two-thirds of the 23 analysts who track the company still maintain a “buy” recommendation, indicating broader confidence in the firm’s long-term strategy.

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Ramnani noted in a client report that while Globant remains well positioned in the long run, it may face short-term challenges in boosting performance amid subdued demand trends. He suggested that, given the external headwinds, the company may struggle to significantly outperform expectations in the near future.

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Globant’s latest results highlight how even high-growth tech firms are vulnerable to geopolitical and macroeconomic disruptions. Although the company has demonstrated an ability to scale quickly and innovate — especially in emerging tech fields like AI — current global uncertainties are weighing heavily on client confidence and spending decisions.

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Moving forward, investors will likely be watching how Globant navigates these challenges and whether its AI initiatives can deliver the kind of growth needed to offset the broader economic slowdown. While the near-term outlook is murky, the company’s long-term track record offers some reassurance to those willing to ride out the volatility.

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In sum, Globant’s dramatic decline underscores the impact that trade policy and geopolitical developments can have on global tech companies. As management reassesses its growth strategy amid shifting economic conditions, stakeholders will be looking for signs of stabilization and a return to the strong momentum that characterized the company’s rise over the past decade.

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