Teleperformance (TEP) Q2 2026 earnings summary

Executive summary

• Sequential like-for-like revenue improved in H1 2026, with Q2 at -1.2% vs. -2.2% in Q1, reflecting transformation progress and commercial momentum.

• H1 2026 revenue was €4,883 million, down 4.5% reported and -1.7% like-for-like, mainly due to Trust & Safety declines and currency effects.

• Underlying revenue growth excluding Trust & Safety was 1.7% like-for-like for the group and 2.3% for Core Services.

• Recurring EBITA margin remained stable at 13.6%, supported by SG&A control and AI-driven efficiencies.

• Net free cash flow before restructuring costs rose to €299 million, up €20 million year-over-year.

Financial highlights

• H1 2026 revenue: €4,883 million (-4.5% reported, -1.7% like-for-like), with negative FX impact and Trust & Safety weakness.

• EBITDA before non-recurring items: €907 million (18.6% margin), EBITA before non-recurring items: €662 million (13.6% margin).

• Net profit was €216 million, down from €249 million last year, mainly due to restructuring costs.

• Net free cash flow excluding non-recurring cash-outs was €299 million, a 7% increase year-over-year.

• Effective tax rate decreased to 29.0% from 33.1% in H1 2025.

Outlook and guidance

• 2026 guidance confirmed: like-for-like revenue growth of 0%-2%, recurring EBITA margin around 14.6%, and net free cash flow of €800–850 million excluding non-recurring items.

• Efficiency savings target raised to €150–170 million, with half realized in 2026; restructuring costs expected at €120–140 million.

• Mid-term (2026–2028): return to 4–6% annual like-for-like revenue growth, recurring EBITA margin ~15.5%, cumulative net free cash flow ~€3 billion.