Teleperformance (ENXTPA:TEP) Could Be 7% Undervalued After Soft Earnings Guidance
Why Teleperformance’s latest earnings and guidance matter for investors
Teleperformance (ENXTPA:TEP) has drawn attention after reporting lower first half 2026 sales and net income compared with a year earlier, while also setting relatively modest full year revenue growth guidance of 0% to 2%.
This combination of slower recent performance and cautious guidance gives you a fresh reference point to reassess Teleperformance’s earnings power, revenue trajectory and how the stock’s recent returns line up with its current fundamentals.
See our latest analysis for Teleperformance.
The earnings update and cautious 2026 guidance arrived after a strong 24.93% 1 month share price return and a 9.92% year to date share price gain. However, the 3 year total shareholder return remains down 30.68%, suggesting recent momentum is rebuilding from a weaker long term base.
If Teleperformance’s shift in momentum has you thinking about other ideas, this is a good moment to scan 101 top founder-led companies for potential long term compounders.
Teleperformance’s sharp 1 month rebound and cautious 2026 guidance point in different directions. Is the recent rerating a cleaner read on the business, or mostly a reset in sentiment that the valuation now needs to test?
Most Popular Narrative: 7.3% Undervalued
The most followed valuation narrative for Teleperformance places fair value at €74.86 compared with the latest close at €69.36, which points to a modest undervaluation and puts the company’s future earnings path in focus.
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.
Want to understand what sits behind that fair value for Teleperformance? The narrative leans heavily on steady top line assumptions, firmer margins, and a higher future earnings multiple. Curious which combination of growth, profitability and discount rate assumptions have the most impact on that €74.86 figure?
Result: Fair Value of €74.86 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Teleperformance’s story can change quickly if contract losses in Specialized Services deepen, or if foreign exchange pressure on reported margins proves more persistent.
Find out about the key risks to this Teleperformance narrative.
Next Steps
With Teleperformance facing both pressure points and potential bright spots, this is a good time to move fast and weigh the trade off yourself. For a clearer sense of how the positives stack up against the concerns, start by reviewing the 4 key rewards and 3 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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