TMT Online ObServer "Stock Movers: GLOB rallies on Q1, CINT down despite..."

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TMT Online ObServer "Stock Movers: GLOB rallies on Q1, CINT down despite..."

Global Research

18 May 2026ab

TMT Online ObServer Equities

Emerging MarketsStock Movers: GLOB rallies on Q1, CINT down

despite +ve Q1, TEF-BZ down on margin miss; Telecommunications

GLOB/CINT: Indian IT Services Q4 review Leonardo Olmos,AnalystCFA

leonardo.olmos@ubs.com

+55-11-9658 7533

Stock Movers: GLOB rallies on Q1, CINT down despite strong Q1, TEF-BZ down on Gustavo Farias

Associate Analystmargin miss

gustavo.farias@ubs.com

GLOB: Stock down 1% as resilient Q1 offsets earlier losses from tech/AI risk- +55-11-2767 6154

off. GLOB was down 13% through Thursday amid renewed AI disruption

concerns after OpenAI announced DeployCo, and the 10Y US Treasury yield

also hitting YTD highs after April CPI came in above expectations. On Friday,

the stock rallied 14% after a resilient Q1 print, with FY26 guidance unchanged

and improved visibility on sequential growth acceleration through 2H26. Still,

even if Globant delivers, the mid-point implies almost zero FXN growth for the

year, and with the sector still pressured by AI deflationary risks, we remain

Neutral.

CINT: Stock down 4% despite a Q1 beat and FY26 guidance lift. CI&T was

also affected by these risk-off moves during the week. Given the strong Q1

print, with FY26 revenue growth guidance lifted to +12% FXN at the mid-point

(one of the few upward revisions in the sector this earnings season), we

believe the market reaction was exaggerated. We continue to expect the

company to deliver on guidance and to outgrow peers.

TEF-BZ: Stock down 7% on margin pressure and elevated lease outflows.

TEF-BZ was down 7% following its 1Q26 print, with margin pressure and lease

cash outflows growing above MSR offsetting healthy revenue growth. In the