GLOBNEUTRAL

Gross Margin

34.5%

Higher than 12% of Technology sector peers

Updated 22h ago

Sector Performance

12th percentile

GLOB

34.5%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Gross margin measures the percentage of revenue remaining after deducting the direct costs of delivering services—a 34.5% margin means Globant keeps $0.345 of every sales dollar after covering its production costs.

This figure lands well below the Technology sector median of 65.2%, placing the company in the 12th percentile among peers, indicating a leaner cost structure relative to the industry. Over the last eight quarters the metric has been stable, with the year-over-year change not available; the most recent quarter-over-quarter change shows a rise of 14.6%, from 30.1% to 34.5%. The combination of a low gross margin level with a stable-to-improving trend suggests limited immediate risk of further deterioration but also modest upside potential—improvement is occurring from a low base. This metric supports the overall NEUTRAL verdict because the below-average profitability level is partially offset by recent sequential gains, creating a balanced picture without strong bullish or bearish implications.

Frequently Asked Questions

What does the Gross Margin tell investors about GLOB?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does GLOB's Gross Margin compare to its sector?

GLOB's Gross Margin of 34.5% compares to a Technology sector median of 65.2%, placing it in the 12th percentile.

Who are GLOB's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.