Teleperformance Shares Drop 3.89% at Close Following Target Revision
Teleperformance continues its correction following the publication of its third-quarter results on November 5. The stock settled at 60.32 euros at the close of trading, showing a decrease of 3.89% for the day. The downward revision of the group's annual outlook confirms investors' concerns about the sector.
Current Trading Session Analysis
At 18:05, Teleperformance was quoted at 60.32 euros, down 3.89% compared to the previous close (62.76 euros). The stock had recorded a spectacular drop at the opening, losing more than 8% at the start of the session. Trading was limited, with only 0.98% of the capital changing hands, reflecting a certain caution among participants. Over a full week, Teleperformance has declined by 4.86%, significantly outpacing the CAC 40's loss of 1.36% on the same day. This divergence illustrates the market's overreaction to the stock, well beyond the general correction. Over three months, the downturn reaches 11.81%, while the annual performance shows a -40.1% debacle, starkly contrasting with the 7.53% progress of the flagship index over twelve months. The stock had not traded at such levels since 2015, highlighting the magnitude of the correction since its peak. This drop comes a month after the stock was removed from the CAC 40 in September 2025, replaced by Euronext.
Third Quarter Results and Revised Outlook
The third-quarter results explain the accelerating debacle. Over the three months, Teleperformance recorded a revenue of 2,507 million euros, down 0.5% in reported data but up 1.5% on a comparable basis. The core services activity showed solid organic growth of 3.9%, driven by acceleration in America and sustained momentum in Europe-MEA-Asia-Pacific. However, specialized services contracted by 12.3% on a comparable basis, affected by the non-renewal of a significant visa application management contract. The exchange rate effect also played a depressive role with a negative impact of 105 million euros. In response, the group significantly revised downward its outlook for 2025. The targeted organic growth is reduced to a range of 1.0% to 2.0%, from 2% to 4% initially. The current EBITA margin is lowered to 14.7%-15% from 15%-15.1% previously. The net available cash flow is revised to about 900 million euros instead of the expected 1 billion. These revisions reflect a business environment that has become more volatile and uncertain, amplified by international budgetary instability.
Technical Analysis of the Stock
From a technical standpoint, Teleperformance is in a fragile zone. The stock is trading at 60.32 euros, very close to its short-term support threshold established at 60.54 euros. It is also trading down 6.3% relative to its 50-day moving average (64.08 euros) and 27% against its 200-day average (82.54 euros), revealing a weakening of the underlying trend. The Relative Strength Index (RSI) stands at 46, indicating a neutral position without an established oversold signal. The MACD remains bearish, while the stock trades in the lower portion of the Bollinger Bands (59.99 to 67.64 euros). The monthly volatility displayed at 9.14% illustrates the expected magnitude of fluctuations.
