The Short Answer
Globant's business activity is qualitatively halal and its known asset-based ratios pass, but the overall classification is incomplete. The December 31, 2025 filing shows debt/assets of 11.05%, liquidity/assets of 7.62% and receivables plus cash/assets of 28.79%.
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-15.
366.706 / 3,318.235
252.825 / 3,318.235
954.911 / 3,318.235
5.526 / 2,454.877
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 11.05%, liquidity/assets is 7.62%, receivables-plus-cash/assets is 28.79% and finance income is 0.23%; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios pass the examined MSCI total-assets limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and finance-income ratios pass the examined Malaysia limits; this is not an official classification of a foreign-listed security.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and business classification remains incomplete.
Business-activity disclosure
Globant provides digital engineering, software development, AI, cloud and design services for enterprise clients. General-purpose technology services are generally permissible, while customer industries and end uses are not reduced to a universal prohibited-revenue numerator.
Limitation: The 20-F does not classify every client, project or end use by a universal Sharia category; activity remains qualitative.
Purification
Globant discloses finance income of $5.526 million, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Globant's December 31, 2025 Form 20-F.
- Borrowings are $366.706 million; operating lease liabilities are excluded.
- Cash is $243.742 million and current plus non-current investments are $9.083 million.
- Trade receivables of $577.673 million plus other current and non-current receivables of $133.901 million are used; cash is added separately in the receivables-plus-cash ratio.
- Fiscal-year revenue is $2,454.877 million and finance income is $5.526 million, including interest revenue.
- Digital engineering, software and IT consulting are generally permissible, but customer end-use revenue is not reduced to a universal prohibited-revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Providing software-engineering and IT consulting services is generally permissible at the activity level. The known filing-based ratios pass, finance income is 0.23% of revenue, and no universal prohibited-revenue numerator is disclosed.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Globant's Business Activity
Globant provides digital-engineering and technology services, including:
- Software development: Custom software and digital-product engineering
- AI and cloud: AI, data, and cloud-transformation services
- Design and experience: Product design and digital experiences for enterprises
Providing these engineering services is permissible at the activity level — Globant earns fees for building software, not from any impermissible activity.
Concerns to Be Aware Of
1. Modest Leverage
Globant reports $366.706 million of borrowings against $3,318.235 million of assets (11.05%), below the examined asset-based debt limits. A market-cap denominator is not calculated here.
2. Receivables and Acquisitions
Trade and other receivables total $711.169 million, and receivables plus cash are 28.79% of assets. Acquisitions, goodwill and customer concentration can change this presentation, so re-verify after material transactions.
3. Interest Income on Cash
Disclosed finance income is $5.526 million, or 0.23% of fiscal-year revenue. ZakatInvest does not prescribe a fixed purification percentage.
Filing-Based Ratios (December 31, 2025)
These calculations use Globant's latest Form 20-F and total-assets denominators:
- Debt / assets: 11.05% — passes the examined debt limits
- Cash + securities / assets: 7.62% — passes the examined liquidity limits
- Receivables + cash / assets: 28.79% — passes the examined limits
- Finance income / revenue: 0.23%; no fixed purification percentage asserted
Methodology Interpretation
On the stored total-assets calculations, FTSE Yasaar, MSCI Islamic and Malaysia SAC financial ratios pass. The activity and prohibited-revenue classification remains incomplete; these are comparisons with published methodologies, not claims of index membership or an external agency verdict.
Bottom Line
Globant (GLOB) has a generally permissible digital-engineering business and known asset-based ratios that pass, but the overall classification is incomplete because no universal prohibited-revenue numerator is disclosed. Investors should consult a qualified scholar and review updated filings.
For Muslim investors seeking technology-services exposure, GLOB sits alongside other halal-screened names like Cognizant (CTSH) and EPAM Systems (EPAM).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →