TTEC and AWS partner to accelerate AI migration as earnings show mixed results

TTEC Holdings has entered a strategic collaboration agreement with Amazon Web Services to accelerate the adoption of artificial intelligence within Amazon Connect, a cloud-based contact centre platform. The partnership is designed to assist enterprises in migrating from legacy systems to AI-powered solutions, with TTEC Digital working directly with AWS product teams to reduce implementation complexity.

The announcement follows TTEC’s first-quarter 2026 earnings report, which recorded revenue of $496 million, a 7.1 per cent year-on-year decline. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $46 million, representing a 9.2 per cent margin. This figure was below the prior-year period’s $56 million, a shortfall management attributed to a delayed receivable on a public-sector project. Excluding this timing issue, the EBITDA margin would have been approximately 10 per cent.

Chris Brown, president of TTEC Digital, stated that the collaboration with AWS aims to strip away the complexity of AI and automation to deliver faster time-to-value for organisations ready to modernise their legacy platforms. The company emphasises its expertise in connecting disparate systems, citing a recent project for a client that required linking 235 separate systems in real time, a process that previously took 24 months.

Operational metrics showed signs of improvement despite the revenue dip. The Engage segment’s revenue retention rate increased to 94 per cent, up from 88 per cent in the prior year. Additionally, the offshore revenue mix expanded from 34 per cent to 38 per cent, with management expecting it to exceed 40 per cent by year-end. Offshore operations typically carry better margins, suggesting potential for earnings expansion as this mix grows.

TTEC also launched its AI Gateway platform in the first quarter, designed to connect existing contact centre systems with AI tools from providers including Alphabet, AWS, and Microsoft. Shelter Insurance is cited as a client already benefiting from the collaboration with AWS, noting that the partnership helps the insurer move faster while maintaining service levels. New logo additions in Q1 were ahead of last year’s pace, a trend management expects to continue into the second quarter.

Analyst sentiment remains cautious but positive on valuation. Of the five analysts tracking TTEC stock, one recommends a “Strong Buy” and four recommend a “Hold,” with an average price target of $5 against a recent share price of $2.56. Management is guiding for a stronger second-half performance across business segments, citing a growing pipeline and improving client retention.