Teleperformance (TLPFY) AI Stock Analysis

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Teleperformance

(Other OTC:TLPFY)

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Rating:73Outperform

Price Target:$50.00▲(10.31% Upside)

Action:reiterated

Date:10/31/26

Attractive valuation and bullish technical momentum are the primary drivers, reinforced by resilient cash flows; earnings call shows transformation progress tempered by near-term revenue and restructuring pressures.

Positive Factors

AI-enabled growthDemand for AI-powered and hybrid workforce solutions can broaden Teleperformance’s service mix beyond traditional contact-center work. More than 1,100 projects, faster pipeline activity, and traction in data services provide a durable avenue for growth and reinforce its relevance as clients redesign customer operations.

Negative Factors

Trust & Safety weaknessTrust & Safety weakness is a structural pressure because automation and translation tools are shifting volumes offshore, reducing demand for some services. Although the segment is about 6% of revenue, its decline materially weighs on group growth and requires continued portfolio adjustment.

Teleperformance (TLPFY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.41B
Dividend Yield: 5.91%
Average Volume (3M): 4,708
Price to Earnings (P/E): 10.2
Beta (1Y): 0.96
Revenue Growth: 3.70%
EPS Growth: 5.37%
Country: US
Employees: 446,716
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Teleperformance Business Overview & Revenue Model

Company Description

Established in Paris, France, in 1910, Teleperformance SE and its subsidiaries deliver a broad array of outsourced services worldwide, primarily focusing on managing interactions with customers and the public. The company's operations are divided int...

How the Company Makes Money

Teleperformance makes money primarily by providing outsourced services to enterprise clients under commercial contracts where it operates client-facing and back-office processes on the client’s behalf. Revenue is generated mainly from (1) customer ex...

Teleperformance Earnings Call Summary

Earnings Call Date:Jul 29, 2026(Q2-2026)|% Change Since:26.43%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call shows constructive operational progress: sequential revenue momentum in Core Services, AI-driven commercial traction, maintained margins and a sizable increase in free cash flow excluding restructuring. Management reiterated full-year guidance and raised efficiency targets, supported by a successful refinancing. However, notable near-term headwinds remain — reported revenue declined (-4.5%) due to currency and Trust & Safety weakness, restructuring charges (H1 EUR 109m; guidance EUR 120–140m) depressed operating profit and net profit, and timing uncertainty around cash realization of savings persists. Balancing the clear strategic and financial positives against the material one‑time costs and softer Trust & Safety trends, the tone is cautiously optimistic with progress on the transformation but continued execution risk.

Positive Updates

Sequential Revenue Momentum and Core Services Growth

Like-for-like revenue sequentially improved from -2.2% in Q1 to -1.2% in Q2; H1 like-for-like at -1.7% but excluding Trust & Safety the group would have grown +1.7%. Core Services like-for-like growth excluding Trust & Safety was +2.3%, with Core Services improving Q1 -1.7% to Q2 -1.0%.

Negative Updates

Reported Revenue Decline and Currency Headwinds

Reported revenue declined -4.5% year-over-year for H1 2026; management attributes a large portion of the reduction to currency effects (notably USD/EUR and INR/EUR) and perimeter changes.

Company Guidance

Management reiterated 2026 guidance of 0–2% revenue growth, stable margins and free cash‑flow, with recurring EBITA at 13.6%; H1 reported revenue was down 4.5% (like‑for‑like -1.7%) with sequential like‑for‑like improvement from Q1 -2.2% to Q2 -1.2%; Core Services LFL was -1.3% (Q1 -1.7% to Q2 -1.0%) and Core ex‑Trust & Safety would be +2.3%, while group ex‑Trust & Safety would be +1.7% (Trust & Safety now ~6% of revenues, Care ~56% of revenues and growing mid‑to‑single digits); net free cash flow before restructuring was ≈€299m, H1 restructuring cash spend ≈€109m with total FY restructuring expected €120–140m, and the efficiency target was raised to €150–170m (from >€100m); net profit was €216m (vs €249m prior), Specialized Services EBITDA margin improved >300bps, and the company completed a €1.2bn dual‑tranche bond issue (€700m ~6yr, €500m ~9yr) at ~5%, taking average cost of debt to 4.28% and gross debt duration to 4.5 years.

Teleperformance Financial Statement Overview

Summary

Mixed results with recent revenue and profitability declines offset by strong cash flow generation and asset expansion, though elevated leverage poses ongoing risk.

Income Statement

65Positive

Balance Sheet

58Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.94B	9.81B	10.28B	8.35B	8.15B	7.12B
Gross Profit	2.07B	1.15B	3.35B	2.60B	1.81B	1.50B
EBITDA	1.77B	1.85B	1.91B	1.64B	1.64B	1.37B
Net Income	462.16M	477.38M	523.00M	602.00M	643.00M	557.00M
Balance Sheet
Total Assets	11.71B	11.47B	12.07B	11.75B	8.86B	8.35B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.12B	1.10B	926.00M	846.00M	858.00M
Total Debt	5.05B	4.92B	4.91B	5.43B	3.42B	3.50B
Total Liabilities	7.51B	7.38B	7.52B	7.52B	5.19B	5.19B
Stockholders Equity	4.19B	4.10B	4.56B	4.23B	3.67B	3.16B
Cash Flow
Free Cash Flow	1.27B	1.13B	1.59B	1.14B	947.00M	876.00M
Operating Cash Flow	1.51B	1.37B	1.81B	1.38B	1.25B	1.11B
Investing Cash Flow	-275.44M	-707.91M	-221.00M	-2.59B	-602.00M	-1.16B
Financing Cash Flow	-1.29B	-622.43M	-1.40B	1.32B	-715.00M	-173.00M

Teleperformance Technical Analysis

Technical Analysis SentimentPositive

Last Price45.33

Price Trends

50DMA41.49Positive

100DMA37.74Positive

200DMA34.62Positive

Market Momentum

MACD1.31Negative

RSI64.03Neutral

STOCH84.52Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLPFY, the sentiment is Positive. The current price of 45.33 is above the 20-day moving average (MA) of 43.00, above the 50-day MA of 41.49, and above the 200-day MA of 34.62, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 84.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLPFY.

Teleperformance Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

TLPFY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	74Outperform	$304.04M	23.90	12.66%	3.00%	4.85%	23.95%
MMS	74Outperform	$3.48B	9.60	21.72%	1.97%	-3.32%	24.98%
TLPFY	73Outperform	$5.52B	10.16	11.19%	5.91%	3.70%	5.37%
DLX	66Neutral	$1.06B	9.73	14.63%	5.46%	0.30%	71.14%
FA	66Neutral	$3.79B	148.03	1.93%	―	32.89%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HHS	51Neutral	$29.74M	-5.19	-30.13%	―	-11.62%	-87.59%

* Industrials Sector Average

Performance Comparison

TLPFY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TLPFY	Teleperformance SA Unsponsored ADR	45.33	12.09	36.39%
DLX	Deluxe Corp.	21.99	2.27	11.51%
HHS	Harte-Hanks, Inc.	3.97	1.24	45.42%
III	Information Services Group	6.01	0.44	7.92%
MMS	Maximus	65.46	-15.96	-19.61%
FA	First Advantage Corporation	21.82	8.02	58.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 31, 2026

Teleperformance AI Stock Analysis