Teleperformance

After a volatile week on the Paris market, TP Group (formerly Teleperformance) saw its shares decline modestly by 6.5%, reflecting a measured investor reaction to adjusted guidance rather than panic. Despite macroeconomic and operational challenges in Q3 2025 — including currency pressures, a U.S. government shutdown, and natural disasters — the company demonstrated resilience with €7.6 billion in nine-month revenue, up 1.5% like-for-like. Core Services grew steadily, while the impact of a lost visa-processing contract weighed on Specialized Services.

Under its "Future Forward" transformation plan, TP is deepening its integration of artificial intelligence through the TP.AI FAB platform, focusing on augmenting rather than replacing human interaction. Over 400 AI projects have been launched this year, driving double-digit growth in AI-related activities and internal efficiency gains.

Though 2025 guidance was trimmed to 1–2% like-for-like growth, the company maintains a strong EBITA margin target (14.7–15%) and robust free cash flow (~€900 million). Analysts view TP's disciplined execution, global footprint, and AI-centric strategy as indicators of stability and long-term value creation — suggesting the company is emerging from recent turbulence with renewed strategic momentum.

As French economic newspaper Les Échos noted on Thursday evening, the group displayed "an unprecedented resilience of the share price," underlining that "short-term headwinds remain largely cyclical." In other words, bad news now seems priced in, and investors are turning their eyes toward the fundamentals.

Resilient Operations in a Challenging Environment

The third quarter of 2025 proved demanding, with foreign-exchange headwinds, the impact of a prolonged US government shutdown, and a series of natural disasters adding to uncertainty. Yet TP's nine-month revenue reached €7.6 billion, up 1.5% like-for-like, confirming the robustness of its model. The group's Core Services division grew 3.2% like-for-like over nine months, with acceleration to +3.9% in Q3. Momentum remained solid in Europe, Middle East and Africa (EMEA) and Asia-Pacific, up +5.1%, while the Americas returned to growth, gaining +2.4% in Q3 compared with +0.9% in the first half.

The Specialised Services segment declined by 8.7%, mainly due to the non-renewal of a major visa-processing contract at TLScontact. Adjusted for that one-off, revenue would have risen 2.6% over nine months. Within this portfolio, LanguageLine Solutions maintained positive growth despite the US market headwinds, while PSG Global Solutions was temporarily affected by a softer labour market.

Aspiring CEO Thomas Mackenbrock summarised the quarter as "another proof of the group's ability to absorb shocks while maintaining growth," insisting that "the performance of Q3 evidences the resilience of our business model."

AI at the Core of Transformation

TP continues to accelerate its 'Future Forward' transformation plan, unveiled at its Capital Market Day in New York. The newly created Value Creation Office now steers execution and ensures consistency across geographies. At the heart of this evolution lies TP.AI FAB, an orchestration platform developing industry-specific solutions through "agentic AI" — a human-centred approach to automation and intelligence. The company has already launched over 400 AI projects this year, including 150 in Q3 alone, applying artificial intelligence not to replace but to augment human interaction.

Internally, TP is leveraging AI to enhance its own efficiency: smarter recruitment, predictive workforce management, improved training, and real-time quality control. AI-related activities — from data services to consulting — recorded double-digit growth over the first nine months of 2025, signalling that the pivot toward tech-driven value creation is firmly under way.

Measured Outlook, Underlying Strength

Given the uncertain macro environment, TP has revised its 2025 guidance to a 1–2% like-for-like growth range, from 2–4% previously. The group now expects a recurring EBITA margin between 14.7% and 15% at constant exchange rates and a free cash flow around €900 million. These figures underscore a disciplined management approach and a sound financial structure, enabling the group to maintain its investment capacity despite external pressures. For many analysts, the recent pullback is more an opportunity than a warning. The combination of disciplined execution, AI-driven innovation, and a solid global footprint offers long-term potential.

For investors who believe in the convergence between human connection and artificial intelligence, TP stands out as a company entering a new cycle — one defined not by volatility, but by renewed value creation and strategic clarity.