Teleperformance SE

Reported revenue growth was -4.5%, with the company saying the biggest driver was currency, and like-for-like revenue growth was -1.7% in H1 2026 versus H1 2025. Core Services like-for-like growth was -1.3%, improving sequentially from -1.7% in Q1 to -1.0% in Q2; excluding Trust and Safety, Core Services would have been +2.3%. Specialized Services was described as improving, with a one-time TLScontact Visa contract loss affecting the comparison; management also said more than EUR 15 million of revenues were moved from third-party suppliers into internal operations in H1. EBITDA margin was maintained year over year in H1, recurring EBITA margin was 13.6%, net profit was EUR 216 million versus EUR 249 million last year, and net free cash flow before restructuring was about EUR 299 million. Restructuring costs were EUR 109 million in H1 and are expected to total EUR 120 million-EUR 140 million for 2026. For the full year, TP reaffirmed revenue growth guidance of 0% to 2%, a stable margin, and unchanged adjusted free cash flow guidance, while expecting cash flow generation to increase in H2 versus H1.

Jorge Amar framed the quarter as early evidence that TP’s transformation is working, citing better sequential revenue trends, stable margins, and stronger cash flow. He emphasized three strategic pillars: a hybrid human-plus-AI workforce, verticalized solutions in areas like healthcare and financial services, and growth in the AI value chain such as data annotation and data labeling. He was upbeat but measured, repeatedly saying there is more work to do while expressing confidence in achieving the full-year outlook.

Benoit Gabelle focused on the hard numbers: -4.5% reported revenue growth due mainly to FX, -1.7% like-for-like growth in H1, stable EBITDA margin year over year, recurring EBITA margin of 13.6%, and net profit of EUR 216 million. He said H1 restructuring expense was EUR 109 million, with full-year restructuring expected at EUR 120 million-EUR 140 million, and that non-recurring cash outflows were EUR 56 million in H1. He also highlighted improved working capital discipline, reduced net capex, about EUR 299 million of net free cash flow before restructuring, a EUR 1.2 billion refinancing, an average cost of debt of 4.28%, and gross debt average duration of 4.5 years.

Analysts focused on the new EUR 150 million-EUR 170 million savings target, where it would come from, how much would drop to margin, and whether specialized services might be divested. Management said the extra savings would come from SG&A simplification and AI applied to support functions and operations, but did not say how much would be retained versus reinvested. On restructuring, Benoit said most costs are severance-related and mainly in EMEA, and that cash timing depends on local negotiations and approvals. Management also said Specialized Services is showing sequential improvement across several units and that the portfolio review is ongoing, while on OpenAI’s customer service offering Jorge said TP is monitoring such tools but believes its combination of technology, human oversight, and cost discipline is the differentiator.