CX Giant Teleperformance Defies AI Gloom with Robust Results

Teleperformance, the world’s largest call center operator, has posted last month strong full-year 2024 results (27 February 2025), surpassing analyst forecasts with revenue of EUR 10.28 billion and a recurring EBITA margin of 15 percent. Despite concerns that artificial intelligence (AI) might render traditional customer experience (CX) operations obsolete, Teleperformance continues to show resilience, demonstrating both adaptability and consistent cash generation. Notably, net free cash flow hit EUR 1.084 billion, a testament to prudent fiscal management even in an uncertain economic environment.

Previously, some market commentators had expected AI-driven platforms to replace much of the human-led services that underpin Teleperformance’s business model. Yet the company has effectively leveraged AI, viewing it as a catalyst rather than a threat, as stated by the Deputy CEO Thomas Mackenbrock in a recent interview with Fortune. Its 2023 acquisition of Majorel and 2025 purchase of ZP Better Together reflect a strategy of growth through targeted deals that bolster the group’s market presence. These integrations, which keep net debt-to-recurring EBITDA at a conservative 1.9x, have yielded tangible benefits. Cost synergies from Majorel alone reached EUR 94 million last year, underscoring Teleperformance’s aptitude for disciplined expansion.

Some industry observers, however, maintain that Teleperformance’s reliance on human agents remains essential. The nuanced interpersonal skills required for complex customer interactions, they argue, simply cannot be fully replicated by AI-driven tools. This perspective supports the notion that Teleperformance’s hybrid approach—combining technology and human expertise—will continue to differentiate the firm in an increasingly competitive global market environment. This stance reassures certain wary market participants.

Nonetheless, the firm’s valuation remains a point of contention. According to a recent story by french financial media “Investir”, Teleperformance trades at a relatively low forward earnings multiple—around six times for 2025—compared with industry peers. This discount could stem from lingering worries that AI might eventually displace large segments of the CX workforce. Teleperformance’s stance, however, is that sophisticated voice and chat automation can enhance customer satisfaction without sidelining the empathy and contextual understanding that well-trained staff provide.

In practice, the group has invested heavily in AI-based solutions aimed at raising service quality. For instance, it has developed a software tool that neutralizes regional accents in real time, potentially reducing communication barriers between agents and customers. The company has earmarked up to EUR 100 million for further AI innovations in 2025, highlighting management’s intent to remain competitive and technologically relevant.

Teleperformance’s evolving portfolio also underpins its optimism. LanguageLine Solutions, long the firm’s flagship specialized offering, continues to meet rising demand in sectors such as healthcare and government. Meanwhile, the acquisition of ZP Better Together extends Teleperformance’s reach into the deaf and hard-of-hearing market, which represents a niche yet increasingly important segment of the CX industry.

Skepticism does persist, especially among investors who believe the rapid emergence of generative AI could transform contact center operations more dramatically than Teleperformance anticipates. Yet for now, the company’s results show steady resilience. Its balanced approach—emphasizing both cost efficiency and adaptability—positions it to navigate shifting consumer preferences and possible economic headwinds. Reuters has already pointed out Teleperformance’s potential for accelerated revenue gains, a view supported by the firm’s ongoing investments and historical record of smooth integrations.

In the end, Teleperformance’s ability to combine advanced technology with human oversight may offer a blueprint for the future of the CX sector. Whether AI eventually supplants human operators remains open to debate, but for the moment, Teleperformance’s commitment to innovation, coupled with a healthy balance sheet, suggests it is well placed to maintain its standing. For investors, that combination of stability and potential upside could look increasingly appealing if market sentiment shifts.