Is Teleperformance (ENXTPA:TEP) Fairly Valued After Weak Half Year Results And Soft Guidance?

Teleperformance earnings and outlook in focus

Teleperformance (ENXTPA:TEP) is in the spotlight after half year 2026 results showed lower sales and net income compared with a year earlier, alongside guidance for flat to modest full year like for like revenue growth.

For investors, the combination of softer first half figures and an outlook for 0.0% to 2.0% like for like revenue growth in 2026 raises questions about how the company is responding to operational pressures in its digital business services activities.

See our latest analysis for Teleperformance.

Following the half year 2026 update, Teleperformance’s €69.0 share price has moved sharply, with a 37.51% 1 month share price return and a 19.92% 3 month share price return contrasting with a 5 year total shareholder return that has declined 77.09%. This points to improving short term momentum after a difficult longer period.

If you are reassessing Teleperformance after these earnings and want to widen your watchlist, this is a good moment to uncover 107 top founder-led companies

The recent rebound in Teleperformance after a long drawdown puts a clear choice in front of you. Is this share price reset already enough to justify buying today, or is it worth waiting for a cheaper entry before committing more capital?

Most Popular Narrative: 7.8% Undervalued

Teleperformance’s most followed narrative puts fair value at €74.86, a little above the current €69.00 share price. It frames today’s rebound as a partial catch up rather than a full rerating.

The accelerating adoption of AI and digitization is expected to increase enterprise demand for outsourced, omnichannel customer experience solutions, Teleperformance has demonstrated strong momentum in EMEA/APAC core services (nearly 6% growth in Q2), suggesting it is well-positioned to capture wallet-share as clients seek scalable, tech-enabled engagement, likely supporting future revenue growth.

Read the complete narrative.

That fair value hinges on a specific mix of muted revenue growth, firmer margins, and a modest expansion in the earnings multiple by 2029. It reflects a balance between relatively flat top line assumptions and a tighter profit profile.

Result: Fair Value of €74.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Teleperformance narrative still faces two key threats, including pressure in Specialized Services from contract losses and higher ongoing investment needs that could strain free cash flow.

Find out about the key risks to this Teleperformance narrative.

Next Steps

Given this mix of concerns and optimism around Teleperformance, now is a good time to review the underlying data yourself and decide what matters most to you. To weigh up both sides in one place, take a closer look at the 4 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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