Teleperformance (TEP) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was €2.433 billion, down 2.2% like-for-like and 6.9% as reported, reflecting anticipated softness from macro headwinds, FX, and contract delays.

• Core Services revenue declined 1.7% like-for-like to €2,101 million, with strong double-digit growth in back-office and AI-powered solutions offset by automation and offshoring in Trust & Safety.

• Specialized Services revenue fell 5.5% like-for-like to €332 million, impacted by a high comparison base and the non-renewal of a major visa contract.

• Over 550 client AI projects are live, with more than 50 new deals in Q1, highlighting traction in AI-driven offerings.

• Strategic plan execution accelerated, including the appointment of Andreas Braun as Chief AI Officer and a focus on transformation and efficiency.

Financial highlights

• Q1 2026 group revenue: €2.433 billion, down 2.2% like-for-like and 6.9% as reported year-over-year.

• Core Services: €2,101 million, -1.7% like-for-like; Specialized Services: €332 million, -5.5% like-for-like.

• FX impact reduced top line by €141 million; hyperinflation in Argentina and Turkey contributed a +0.1% effect.

• Sequential improvement in revenue growth observed in March, especially in LLS.

• Positive scope effect of €16 million from acquisitions.

Outlook and guidance

• 2026 group like-for-like revenue growth targeted at 0%-2%, with recurring EBITA margin at 14.6%.

• Free cash flow guidance of €800–850 million, excluding €70–90 million in restructuring costs.

• Softer H1 expected, with acceleration and upswing in H2 to meet full-year guidance.

• Mid-term ambitions: 4–6% organic revenue growth and ~15.5% EBITA margin by 2028, with €3 billion cumulative net FCF over 2026–28.

• Efficiency program on track to deliver €100+ million in annual run-rate savings.