Globant S.A. GLOB recently joined forces with Faros AI to fuel the transformation of software engineering teams by introducing cutting-edge artificial intelligence (AI) capabilities to streamline workflows, enhance productivity and deliver unparalleled value to clients.

Faros AI is renowned for its ability to optimize engineering workflows across the Software Development Lifecycle (SDLC). By providing real-time analysis of productivity and uncovering bottlenecks, the platform enables teams to identify opportunities for improvement and elevate software quality. Globant plans to integrate Faros AI's advanced platform into its global engineering operations. The initiative is likely to empower GLOB’s workforce or “Globers” to harness AI-driven insights to make faster, more informed decisions, maximizing client satisfaction and unlocking new opportunities.

Faros AI’s innovative platform is designed to provide seamless insights into the SDLC. Traditional methods of measuring productivity often involve re-engineering tools and processes, offering limited visibility into operations. Faros AI tackles this issue with an open data platform that integrates information from existing and future engineering tools. It offers real-time feedback, allowing teams to improve their workflows. Lighthouse AI, the advanced AI/ML (machine learning) framework within the platform, provides detailed diagnostics to identify problems and offers actionable recommendations. It aids teams in enhancing lead times, product quality and system reliability with customized strategies.

For Globant, these capabilities will be instrumental in driving its Agentic AI strategy. By integrating Faros AI with its existing AI solutions from Globant X, the company aims to unlock more efficient development cycles and enable autonomous task execution. GLOB highlighted a survey from Gartner, which states that 50% of software engineering organizations will adopt software engineering intelligence platforms by 2027 to boost productivity, a significant jump from just 5% in 2024. Through this collaboration, both companies are at the forefront of this trend, showcasing the immense potential of AI to transform the software engineering landscape.

GLOB’s Focus on AI Bodes Well

Globant’s focus on AI has significantly driven growth, with AI initiatives up 120% year to date, showcasing its expertise in delivering tailored solutions and positive results. Healthy demand for GLOB’s services across key markets and industries further supports its growth. In the last reported quarter, its revenues totaled $614.7 million, almost in line with the Zacks Consensus Estimate. Total revenues rose 12.7% year over year. With a strong growth trajectory and robust pipeline, GLOB expects fourth-quarter revenues of $642-$648 million, implying a 10.6-11.6% year-over-year increase.

Favorable demand trends and a rich portfolio position GLOB for long-term growth, which is reflected positively in GLOB’s stock performance.

Luxembourg-based Globant is a global provider of engineering, design and innovation services to clients. It is involved in the provision of data management solutions, quality assurance engagement strategy, mobile testing, test automation, load and performance testing and game testing services. It exited the September quarter with 29,998 clients, representing an increase of 9.1% year over year.

GLOB’s Zacks Rank & Stock Price Movement

At present, GLOB carries a Zacks Rank #3 (Hold). Shares of the company have lost 6.8% against the sub-industry’s  growth of 4% in the past year.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Celestica Inc. CLS and Plexus Corp., Inc. PLXS. IDCC, CLS & PLXS presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%. 

Plexus is a leading provider of electronic contract manufacturing services to OEMs in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.


 

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