Globant (NYSE: GLOB) cratered ~14% in Thursday's extended session after its Q2 report, and was still down about 12.6% in Friday's premarket (CNBC), sliding from near $41 toward ~$35 — its weakest zone since 2017.

The trigger wasn't really the quarter, it was the guidance cut. Globant now sees full-year 2026 revenue of $2.428–2.462 billion, down from $2.462–2.508 billion. The new ceiling sits below where the old range used to start — so even the best case got marked down. Q2 revenue was $614.4M, essentially flat year-on-year, with adjusted EPS of $1.40. For a company built on 20%+ growth, "flat" is the whole story.

Why the market flinched

Management pointed to slower decision-making by North American clients, FX drag, and soft new markets (travel and hospitality budgets pulling back). But the deeper fear is structural: generative AI is eating into the bill-by-the-hour IT-services model. When enterprises can ship more software with fewer outside engineers, they sign smaller, slower contracts — exactly the work a services shop sells. Globant's own AI pivot is real — Glob.AI "AI Pod" annual recurring revenue climbed to $52.8M from $32.8M in March — but it's nowhere near big enough yet to offset the erosion in the legacy book.

The ripple

This is a read-through for every headcount-based services name, not just Globant. Watch EPAM Systems — the closest US-listed comp, already beaten up on the same AI-disruption thesis — and the Indian IT majors TCS, Infosys and Wipro, where the "AI does more with fewer engineers" worry has capped valuations all year. If a flat Globant quarter is the canary, the whole managed-services pricing model is on the table.

What would flip it

The concrete test is Q3, guided to $607–615M and due in early November: land inside that range with AI-Pod ARR still climbing and the "turning point" story gets a hearing; a print below $607M confirms the slide. Traders are also watching whether the stock holds the ~$35 level it fell to.

As of 10:25 ET / 19:55 IST, Fri Aug 14, 2026. Sources: Rio Times, CNBC. For discussion and education only — not investment advice. Verify before acting.