TP cuts 2025 revenue outlook amid U.S. slowdown, AI pressure
NOIDA, INDIA — TP, previously known as Teleperformance, has lowered its revenue and profit forecasts for 2025, citing a volatile United States market and intensifying competition from artificial intelligence (AI) that threatens to replace human agents, according to a report from ETTelecom.com.
Analysts and investors have expressed concern about the company’s ability to maintain growth amid the rapid digital transformation reshaping the outsourcing industry.
U.S. slowdown hits language service, profit margins
The company now expects revenue growth of between 1% and 2% in 2025, down from an earlier forecast of 2% to 4%. Operating margin targets were also trimmed to between 14.7% and 15% from 15%–15.1%.
“To make it simple, our clients are cautious and we need to be cautious as well,” said TP’s Chief Financial Officer (CFO) Olivier Rigaudy, highlighting the cautious stance of clients, saying in a call with journalists
The slowdown is particularly pronounced in TP’s LanguageLine Solutions unit, which provides interpretation services to U.S. government agencies. The reduced demand and delayed payments resulting from the U.S. government shutdown have impacted the unit.
“One, we do provide government services in the US that are affected. Secondly, our specialized services business, in particular LanguageLine, provides services also to US government institutions,” said Deputy Chief Executive Officer (CEO) Thomas Mackenbrock.
“And, thirdly, if you look at the latest forecast from the Congressional Budget Office, you see they’re also expecting an impact on consumer sentiment,” he added.
TP reported third-quarter revenue of €2.51 billion (US$2.92 billion) and lowered its free cash flow target to €900 million (US$1.04 billion) from €1 billion (US$1.16 billion) previously.
The company also exited France’s blue-chip CAC40 index in September, signaling a period of strategic recalibration.
AI competition reshapes outsourcing landscape
TP joins other call center operators facing the challenge of AI-powered tools that can handle tasks traditionally performed by humans.
Analysts warn that maintaining growth during such technological disruption will be increasingly difficult, especially in markets like the U.S., where both consumer behavior and regulatory factors remain unpredictable.
From an industry perspective, TP’s caution reflects broader trends in global outsourcing. Companies are now balancing technological efficiency with the human touch, particularly in specialized services such as multilingual support and recruitment outsourcing.
AI may reshape operational models; firms that can combine automation with high-quality human interaction may gain a competitive edge, positioning themselves for long-term stability even amid economic and geopolitical headwinds.
Teleperformance previously ranked #1 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
