Teleperformance: Sales Down 1.2% in the Third Quarter, 2026 Revenue Target Lowered
On November 5, 2026, the TP Group (Teleperformance) published third-quarter revenue of €2,532 million. Sales fell 1.2% on a like-for-like basis, while activity excluding Trust & Safety services rose 2.0% on the same basis.
The decline in Trust & Safety services, which was steeper than anticipated, along with a less favorable sector environment than expected, led management to lower its 2026 revenue target. It simultaneously confirmed its objectives for recurring EBITA margin and net available cash flow.
Excluding Trust & Safety, Sales Grew 2.0% in the Third Quarter
The gap between the two measures isolates the effect of Trust & Safety services. According to the press release, their decline and the continued acceleration of offshore solutions more than offset the growth of most other Core Services activities, in particular AI-augmented solutions, back-office services and performance-based contracts.
The same mechanism is visible in Core Services: they declined 1.0% on a like-for-like basis but rose 2.9% excluding Trust & Safety. Chief Executive Officer Jorge Amar acknowledged: “Trust & Safety services remained under pressure.”
In the Americas region, the group attributes this decline to the accelerating pace of automation and the growing role of offshore solutions.
On a reported basis, quarterly revenue rose 1.0%, supported by a favorable currency effect of €62 million, mainly linked to the appreciation of the US dollar and the Colombian peso against the euro.
Back-Office and Banking, Financial Services and Insurance Grow While Specialized Services Decline
Core Services accounted for €2,194 million over the quarter. The Europe, Middle East & Africa and Asia-Pacific region (€1,149 million) declined 1.5% on a like-for-like basis, an improvement of 120 basis points compared with the second quarter, with double-digit growth in AI-augmented solutions.
The Americas region (€1,045 million) moved in the opposite direction: it was virtually stable, at -0.3% on a like-for-like basis, after +1.1% in the second quarter. However, it rose 5.0% on a reported basis, driven by double-digit growth in back-office services and in the banking, financial services and insurance sector.
In both regions, customer relationship management services, the largest source of revenue, grew by a low single digit at the lower end of the range, an improvement from the second quarter. Specialized Services (€338 million) declined 2.9% on a like-for-like basis, after -2.4% in the previous quarter.
According to the group, their revenue would have increased excluding the impact of the internal synergy plan with Core Services, in place since the first quarter. The TLScontact visa application management business posted double-digit growth, and ZP Connect grew by a mid-range single digit.
2026 Sales Target Lowered, Recurring EBITA Margin Targeted at Around 14.6%
Over the first nine months, revenue reached €7,415 million, down 1.5% on a like-for-like basis and down 2.7% on a reported basis. The like-for-like quarterly change remained at -1.2% in the second and third quarters, after -2.2% in the first.
The group now expects its 2026 revenue to change by between -1.5% and -2.5% on a like-for-like basis. It maintains a stable recurring EBITA margin of around 14.6% (based on an average euro-dollar exchange rate assumption of 1.20), and net available cash flow of €800 million to €850 million, excluding non-recurring cash outflows.
Non-recurring restructuring costs are expected at the upper end of the €120 million to €140 million range and will be recognized in 2026. These measures are expected to generate annualized savings of €150 million to €170 million.
The 2027 targets will be presented with the annual results on February 25, 2027, and the 2028 targets will be updated in the first half of 2027. This announcement follows a 39% rise in the share price over three months, peaking on October 19, followed by an intraday decline on November 3.
According to the consensus of tracked analysts, the stock trades at approximately 5.9 times expected earnings for the current fiscal year. The group thus distinguishes between its two trajectories: revenue growth is being revised due to Trust & Safety services and the sector context, while the recurring EBITA margin and cash generation targets are maintained.
