Teleperformance SE

TEP

Equity

ISIN FR0000051807 / Valor 523997

Euronext - Euronext Paris (2026-07-02)

EUR 50.66+0.96%

Teleperformance SE
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Teleperformance SE is a France-headquartered business process outsourcing and customer experience management company that provides outsourced customer care, technical support, back-office processing and digital services to clients across industries such as telecommunications, technology, financial services, healthcare and e‑commerce. Operating in dozens of countries with multilingual contact centers and increasingly cloud- and AI-enabled platforms, the firm delivers omnichannel customer interactions (voice, chat, email, social media) as well as analytics, automation and back-office workflow solutions to help clients scale service operations and manage peak volumes. Teleperformance serves large corporate customers under long-term contracts and flexible delivery models (onshore, nearshore and offshore) and is publicly traded on the Paris exchange.

Summarized from source with an LLMView SourceSector: Telecommunications

Headline revenue

Q1 2026 consolidated revenue: €2,433m (reported -6.9% vs Q1 2025; -2.2% like‑for‑like). Hyperinflation adjustment added a small +0.1% effect to LFL growth.

Segment performance

Core Services: €2,101m, down -1.7% LFL (reported -6.4%). Specialized Services: €332m, down -5.5% LFL (reported -9.9%); Specialized Services would be -1.0% LFL excluding the non‑renewal of a major TLScontact visa contract.

Regional notes

Americas and Europe, MEA & APAC both saw declines driven largely by Trust & Safety automation and delayed ramp‑ups; India showed accelerating growth from offshore BPO demand which supports margins despite reducing reported revenue.

Key drivers of the quarter

Primary drivers: accelerated offshoring, continued automation in Trust & Safety lowering volumes, slower contract ramp‑ups due to geopolitical turmoil, and a volatile US environment impacting LanguageLine Solutions (LLS).

Currency, scope and reporting changes

Reported revenue included a negative currency effect of -€141m, a positive scope effect of +€16m (recent consolidations), and reporting reclassifications (AllianceOne and TP Infinity moved into Core Services) that do not change Group revenue but affect segment presentation.

AI and strategic execution

TP is accelerating its "Future Forward" strategy and TP.ai FAB deployment; management says FAB is embedded in nearly 100% of new contract wins. Andreas Braun was appointed Group Chief AI Officer (effective May 4, 2026) to scale AI capabilities and commercial AI offerings.

Efficiency program and near‑term costs

Efficiency initiatives are on track to deliver >€100m annual run‑rate savings (about half realized in 2026). Management expects €70–90m of non‑recurring restructuring costs to be booked in 2026.

2026 outlook

Confirmed 2026 targets: Group LFL revenue growth of +0.0% to +2.0%; stable recurring EBITA margin around 14.6% (assumes EUR/USD 1.20); net free cash flow €800–850m excluding non‑recurring cash‑outs, with a softer H1 and acceleration in H2.

Mid‑term objectives (2026–2028)

Target to return to sustained mid‑single digit LFL growth (4–6% in 2028), recurring EBITA margin ~15.5% by 2028 (post AI transformation), and cumulative net free cash flow of ~€3bn over 2026–2028 (including organic AI costs).

Summarized from source with an LLMView Source

Key figures

-40.4%1Y

-67.0%3Y

-85.4%5Y

Performance

50.7%1Y

48.0%3Y

46.2%5Y

Volatility