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Teleperformance's H1 results were modest, but underlying sales trends improved sequentially, and management maintained its 2026 outlook. Weakness is increasingly concentrated in Trust & Safety, whose contribution to group revenue has fallen materially. TLPFF's higher restructuring costs should be offset by €150-170 million of annualized savings, supporting future margins.

Teleperformance SE (TLPFY) Q2 2026 Earnings Call Transcript

Revenue declined 2.2%, but management maintained full-year guidance. There will be less pressure from FX, and they will fully absorb the non-renewed visa application management contract. The company extended a significant portion of its debt maturities from 2027-2028 into 2032-2035, improving financial flexibility and reducing refinancing risk. At current levels, the shares trade on a free cash flow yield above 25%.

Teleperformance remains profitable and cash-generative despite widespread concerns about AI-driven disruption. New leadership and a Chief AI Officer with a compelling track record signal a more focused approach to technological transformation. The company continues to raise its dividend while maintaining a conservative payout ratio, the balance sheet remains healthy, with plans to further reduce leverage.