Globant shares traded lower Friday after the company posted mixed second-quarter results, cut its third-quarter and fiscal 2026 outlook, and drew a lower price target from Needham analyst Mayank Tandon, who reduced his forecast to $45 from $50 while keeping a Buy rating. The company reported adjusted EPS of $1.40, below the $1.50 analyst estimate, while revenue of $614.417 million slightly beat the $613.06 million consensus. Needham said revenue modestly topped expectations, but earnings were hurt by foreign-exchange headwinds, with weaker New Markets demand, softer travel spending and longer client decision cycles weighing on guidance. At the same time, Globant's Glob.AI ARR (annual recurring revenue) accelerated to a $52.8 million exit rate, up about 60% quarter over quarter, prompting the company to raise its end-2026 target to at least $110 million from $60 million-$100 million. The analyst said that business could expand faster than initially expected and carries margins about 10 percentage points above Globant's traditional delivery model. Revenue per head rose 9.7% year over year to $95,800, and management expects a business optimization program to produce a leaner cost base by fiscal 2027. For the third quarter, Globant forecast adjusted EPS of $1.43-$1.53 on revenue of $607 million-$615 million, both below analyst expectations. It also lowered fiscal 2026 adjusted EPS guidance to $5.75-$6.15 from $6.10-$6.50 and cut revenue guidance to $2.428 billion-$2.462 billion from $2.462 billion-$2.508 billion. Shares were down 11.64% at $36.22 in premarket trading Friday.