REG - WPP PLC - First Quarter 2026 Trading Update
28/04/2026 07:00
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RNS Number : 1078C WPP PLC 28 April 2026
28 April 2026
First Quarter 2026 Trading Update
Q1 performance in line with expectations and FY guidance reiterated; focus on
disciplined execution of Elevate28 plan
First Quarter £ million +/(-) % reported(1) +/(-) % LFL(2)
Revenue 3,030 (6.6) (4.0)
Revenue less pass-through costs 2,260 (8.9) (6.7)
Q1 revenue of £3,030m was down 6.6% YoY on a reported basis and down 4.0%
like-for-like (LFL), while revenue less pass-through costs of £2,260m was
down 6.7% LFL. Performance in the quarter is consistent with expectations and
guidance given at the preliminary results in February. We note ongoing
uncertainty in the near-term given events in the Middle East, but we continue
to expect 2026 LFL revenue less pass-through costs to decline in the mid to
high-single digits in the first half of 2026 with an improving trajectory in
the second half and headline operating profit margin to be 12% to 13%.
Cindy Rose OBE, Chief Executive Officer of WPP, said:
"Building a simpler, integrated WPP - powered by WPP Open - is resonating with
clients and driving strong new business. While it is only a few months since
we unveiled our Elevate28 strategy, I am encouraged by this momentum which
validates the 'Stabilisation' phase of the plan and our path to growth.
"Consistent organic growth remains our North Star. While it will take time to
outpace historical losses, our Q1 results are in line with expectations and
ahead of Q4 2025.
"I would like to thank our clients and partners for their trust, our
shareholders for their continued support and our people for their unwavering
commitment as we execute our plan."
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Investors and analysts Media
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irteam@wpp.com wpp.com/investors (https://www.wpp.com/en/investors) press@wpp.com
(1.) Percentage change in reported sterling.
(2.) Like-for-like. LFL comparisons are calculated as follows: current year,
constant currency actual results (which include acquisitions from the relevant
date of completion) are compared with prior year, constant currency actual
results, adjusted to include the results of acquisitions and disposals for the
commensurate period in the prior year.
Q1 2026 performance
· Q1 revenue - Q1 2026 revenue of £3,030m was down 6.6% reported, a LFL decline
of 4.0%. Revenue less pass-through costs of £2,260m was down 8.9% reported
and 6.7% LFL.
· Business segment and regions - Global Integrated Agencies Q1 LFL revenue less
pass-through costs was down 7.4%, with WPP Media down 8.5% while other Global
Integrated Agencies declined 6.4%. Public Relations saw Q1 LFL revenue less
pass-through costs down 2.6% while Specialist Agencies was down 2.3%. By
geography, North America LFL was -7.8%, UK was -6.6%, Western Continental
Europe -4.7% and Rest of World -6.9%, with growth of 1.0% in India offset by a
decline of 12.2% in China. The Middle East was down 12.6% in the quarter.
· Clients - WPP's top 25 clients saw a decline of 9.4% in the quarter which
reflects client assignment losses from the prior year and is against a tough
comparison from Q1 2025 (+7.0%). While the declines in the CPG and Telecom,
Media and Entertainment sectors were sequentially better compared to Q4 2025,
all client sectors saw a decline in Q1 2026.
· Leading indicators - During the first quarter, WPP's new business momentum
continued to build with a number of new client assignments as well as
significant client retentions. WPP also announced a unique 'Google Earth AI'
integration in collaboration with Google Cloud, expanded its partnership with
Adobe and secured a number of new data partnerships. We continue to make
progress on potential asset disposals and will provide updates in due course,
as appropriate. Please see full Q1 2026 highlights below.
Financial outlook for 2026
· Reiterating 2026 guidance - We anticipate LFL revenue less pass-through costs
to decline in the mid to high-single digits in the first half of 2026 with an
improving trajectory in the second half and expect headline operating profit
margin for the full year to be 12% to 13%.
· Adjusted operating cash flow before working capital - We continue to
anticipate adjusted operating cashflow before working capital of £800m to
£900m. Excluding anticipated restructuring costs associated with historical
plans and the Elevate28 strategy, we would anticipate adjusted operating
cashflow before working capital of £1.0bn to £1.1bn.
First quarter 2026 overview
Revenue in the first quarter was £3,030m, down 6.6% from £3,243m in Q1 2025,
and down 4.0% LFL. Revenue less pass-through costs was £2,260m, down 8.9%
from £2,482m in Q1 2025, and down 6.7% LFL.
£ million Q1 2026 % % % +/(-) % LFL
reported M&A FX
Revenue 3,030 (6.6) (0.1) (2.5) (4.0)
Revenue less pass-through costs 2,260 (8.9) (0.1) (2.1) (6.7)
Segmental review
Business segments - revenue less pass-through costs
£ million Q1 2026 Q1 2025(1) +/(-) % reported +/(-) % LFL
Global Integrated Agencies 1,950 2,146 (9.1) (7.4)
Public Relations 157 167 (6.0) (2.6)
Specialist Agencies 153 169 (9.5) (2.3)
Total Group 2,260 2,482 (8.9) (6.7)
Global Integrated Agencies LFL revenue less pass-through costs declined 7.4%
(Q1 2025: -2.8%). WPP Media LFL declined 8.5% (Q1 2025: -0.9%) driven by prior
year client losses, but was a sequential improvement from Q4 2025 (-10.8%).
Other Global Integrated Agencies declined 6.4% LFL (Q1 2025: -4.4%), with our
creative agencies in aggregate down mid to high-single digits. WPP Production
(launched in February 2026 and built around Hogarth) grew low single digit
against a tough comparison (Q1 2025: high-single-digit growth).
Public Relations LFL declined 2.6% (Q1 2025: -6.6%). Burson saw improving
trends with growth in North America supported by better new business, offset
by declines in Asia and the Middle East. Europe is stabilising with solid new
business momentum.
Specialist Agencies was down 2.3% in Q1 2026 (Q1 2025: +1.2%). CMI Media
Group, our specialist healthcare media planning and buying agency, delivered
high-single-digit LFL growth, building on double-digit growth in 2025, while
Landor and Design Bridge and Partners continued to grow, supported by spend
from existing clients. However, pressure on the longer tail of agencies
weighed on overall performance.
(1.) Prior year figures have been restated to reflect the reallocation of a
number of businesses between Global Integrated Agencies and Specialist
Agencies.
Regional segments - revenue less pass-through costs
£ million Q1 2026 Q1 2025 +/(-) % reported +/(-) % LFL
N. America 862 992 (13.1) (7.8)
United Kingdom 344 368 (6.5) (6.6)
W Cont. Europe 473 487 (2.9) (4.7)
AP, LA, AME, CEE(1) 581 635 (8.5) (6.9)
Total Group 2,260 2,482 (8.9) (6.7)
North America declined 7.8% LFL (Q1 2025: -0.1%), a slight sequential
deterioration relative to Q4 2025 (-7.3%). The quarter saw the full impact of
prior year client losses at WPP Media and client spending cuts at Ogilvy and
AKQA, with pressure centred on CPG and Tech & Digital Services. Healthcare
and Automotive showed positive trends in the quarter.
The United Kingdom declined 6.6% (Q1 2025: -5.5%), a sequential improvement
from Q4 2025 (-9.2%). Prior year client losses and pressure on client spend,
particularly in CPG and Automotive, offset positive trends in Retail.
Western Continental Europe saw a 4.7% decline (Q1 2025: -4.5%). Germany and
France continued to decline on Automotive and CPG client spending pressures
and Spain was also slightly down, while Italy returned to growth.
Rest of World declined 6.9% (Q1 2025: -3.8%), driven by Asia Pacific (-8.2%).
India grew 1.0% on new business wins (particularly at WPP Media) against a
tough comparison (Q1 2025: +5.5%), offset by China declines (-12.2%) on
continued spending pressures and client losses. Middle East & Africa
declined 11.1% on cuts to client spending caused by geopolitical tensions in
the Middle East, with further declines in Latin America (-3.4%) and Central
& Eastern Europe (-0.4%).
Top five markets - revenue less pass-through costs
% LFL +/(-) USA UK Germany China India
Q1 2026 (7.4) (6.6) (5.6) (12.2) 1.0
Client sector - revenue less pass-through costs
Q1 2026 % share, revenue less pass-through costs(2) +/(-) % LFL
CPG 26.9 (12.4)
Tech & Digital Services 17.1 (9.6)
Healthcare & Pharma 12.3 (1.0)
Automotive 11.1 (6.0)
Retail 9.5 (1.8)
Telecom, Media & Entertainment 6.1 (12.8)
Financial Services 5.9 (12.8)
Other 4.6 8.0
Travel & Leisure 3.7 (4.2)
Government, Public Sector & Non-profit 2.8 (9.4)
(1.) Asia Pacific, Latin America, Africa & Middle East and Central &
Eastern Europe.
(2.) Proportion of WPP revenue less pass-through costs in Q1 2026; table made
up of clients representing 82% of WPP total revenue less pass-through costs.
Balance sheet highlights
Average adjusted net debt (for the last 12 month rolling period) at 31 March
2026 was £3.3bn(1), compared to £3.4bn at 31 March 2025, and £3.4bn at 31
December 2024.
Adjusted net debt at 31 March 2026 was £3.4bn(1), against £3.6bn as at
31 March 2025.
In March 2026, WPP issued US$600m of 6.5% bonds (which was swapped to €519m
at 5.45%) and matures March 2036. The bond raising was oversubscribed,
reflecting strong investor demand.
Financial outlook
We are reaffirming our guidance for 2026 as follows:
Like-for-like revenue less pass-through costs decline in the mid to
high-single digits in the first half of 2026 with an improving trajectory in
the second half
Headline operating profit margin expected to be 12% to 13%
Adjusted operating cash flow before working capital of £800m to £900m
Other 2026 modelling assumptions:
· Mergers and acquisitions will not significantly impact revenue less
pass-through costs
· FX impact: current rates (at 6 April 2026, with USD/GBP rate of 1.33) imply a
c.0.4% drag on FY 2026 revenue less pass-through costs
· In keeping with our revenue less pass-through cost and headline operating
margin guidance, we expect the following:
· Headline earnings from associates of around £30m
· Non-controlling interests of around £45m
· Headline net finance costs of around £290m
· Headline effective tax rate(2) between 33% to 34%
· The following items impact adjusted operating cash flow before working
capital:
· Capex of around £190m
· Total cash restructuring costs of around £250m, consisting of
c.£190m from Elevate28 and c.£60m from historical programmes
(1.) The Group adopted the IFRS 9 amendments effective 1 January 2026. This
increased cash and cash equivalents and reduced adjusted net debt by £180m as
at 1 January 2026. As at 31 March 2026, the impact of these amendments was
such that cash and cash equivalents were higher, and adjusted net debt was
lower, by £215m. Further, the 12-month rolling average adjusted net debt as
at 31 March 2026 was £172m lower, calculated by applying the amendment for
the period 1 April 2025 to 31 March 2026.
(2.) Headline tax as a % of headline profit before tax.
Q1 2026 highlights
Below we highlight key developments from Q1 across the Group:
Clients
· WPP continued new business momentum - During the first quarter, WPP's new
business momentum continued with a number of new client assignments, placing
us #1 in J.P. Morgan's quarterly New Business Rankings (see link
(https://www.linkedin.com/posts/wpp_lets-get-down-to-new-business-activity-7449394003827003392-1anr?utm_source=share&utm_medium=member_desktop&rcm=ACoAABYue4QBpThHGXZzpy4yumI5Ij66isOGTRQ)
) for the second consecutive quarter. This was driven by significant wins
across media, creative and integrated services, including being appointed as
Estée Lauder's first-ever global media partner, and media assignment wins for
Wendy's, SC Johnson and Norwegian Cruise Lines in the US. We also saw a number
of important retentions, including the renewal of our work with Tesco in the
UK and Central Europe, Huawei in China and Red Bull in India. Our creative and
PR wins included global assignments for Fuze Teas (part of The Coca Cola
Company) and Gaggenau, Bet365 in the US and Airbnb in Australia. Our
integrated offer led to the win of Jaguar Land Rover globally, worldwide
services for Solvay and the European Commission in Europe.
· WPP launches Commerce Practice - In April, WPP brought together its commerce
expertise from across its agencies, operating units and regions into a single,
connected global capability (see link (https://www.wpp.com/en/commerce) ).
Brent Taylor, formerly CEO of WPP's retail marketing agency Barrows, has been
named global CEO of WPP's Commerce Practice. This builds on WPP's established
commerce capabilities, which are already recognised as industry-leading, with
WPP having earned the highest possible scores across 12 criteria in The
Forrester Wave™: Commerce Services, Q1 2026 report.
· Industry recognition of our work for clients - In March, WPP claimed top spot
on WARC Creative 100 for the fourth consecutive year and for WARC Media 100
for the ninth consecutive year. Ogilvy and VML secured first and third spots
for global network rankings. In addition, Mindshare Worldwide was named Media
Network of the Year and Dove and Mindshare's 'Dove Beauty Test Stops With Me
(https://www.wppmedia.com/case-studies/dove-beauty-test-stops-with-me) ',
created with Ogilvy, came in as the number one global media campaign.
Technology
· Google Earth integration - In April, WPP announced a unique 'Google Earth AI'
integration (see link
(https://www.wpp.com/en/news/2026/04/wpp-bridges-the-gap-between-digital-marketing-and-physical?utm_source=Web&utm_medium=PR&utm_campaign=Google&utm_content=APRIL26)
), following the expansion of the Cloud and AI partnership with Google in
October 2025. WPP has become one of the first media and marketing services
companies to integrate Earth AI models and datasets directly into WPP Open
and, through this expanded partnership, WPP can now predict demand and
automate marketing at a hyper-local level.
· Adobe expanded partnership - In February, WPP and Adobe announced an expanded
partnership to drive AI transformation for client marketing operations (see
link
(https://www.wpp.com/en/news/2026/02/wpp-and-adobe-expand-partnership-to-drive-ai-transformation-for-client-marketing-operations)
). The collaboration will provide a single marketing solution that brings
together Adobe's industry-leading AI capabilities, content platforms and data
orchestration with WPP's deep strategic insight, creative prowess and
end-to-end transformation expertise, leveraging WPP's agentic marketing
platform, WPP Open, to deliver a connected and privacy-safe approach to
marketing transformation. Brands will have access to agentic AI workflows and
orchestration from both companies, resulting in tighter coordination of the
end-to-end marketing process.
· WPP Media and InfoSum continue to expand data partnerships - In April,
Trainline joined WPP Media's Open Intelligence for Commerce (see link
(https://www.wppmedia.com/news/trainline-joins-open-intelligence-for-commerce)
), following on from Salling Group who joined in January (see link
(https://www.wppmedia.com/news/salling-group-joins-open-intelligence-for-commerce)
). Also in March, InfoSum continued expanding its strategic partnership with
Dstillery (see link
(https://www.infosum.com/blog/infosum-partners-with-dstillery) ).
· WPP Media's Advertising Intelligence Framework - In February, WPP Media
introduced a new framework to navigate the emerging AI advertising era (see
link
(https://www.wppmedia.com/thought-leadership/research-business-intelligence/advertising-intelligence-framework-first-edition)
). Reflecting advertiser interests on both sides of this paradigm shift, the
framework establishes five core capability categories, each indispensable for
effectively connecting advertisers with audiences. These are: Data Assets,
AI/Tech, Distribution, Commerce/Transaction and Content/Media. The framework
analysis reveals a diverse landscape with varying provider maturity levels
across these categories and underlines the growing complexity of the media
landscape, supporting the role played by WPP as a trusted growth partner.
People
· Chief People Officer appointment - In early April, WPP appointed Mark Taylor
as WPP's new Chief People Officer and announced that Marie-Claire Barker has
taken on a new role as Chief People Officer, Performance & Culture. Mark
Taylor was formerly Chief People Advisor at Lego Brand Group. Mark reports to
Cindy Rose as part of the Executive Committee and his remit covers leading the
transformation of WPP's People function and building the talent strategy and
capabilities to deliver on Elevate28 strategy.
· Chief Transformation Officer appointment - In early April, WPP appointed
Anne-Isabelle Choueiri as WPP's new Chief Transformation Officer.
Anne-Isabelle joins from The Estée Lauder Companies and has previously held
leadership roles at digital and marketing agencies, as well as top-tier
consultancies including Accenture, Masaï - a Bain & Co spin-off - and
Kearney. In this new role, she will lead the design and implementation of the
operational transformation that underpins the Elevate28 strategy.
· WPP Media CEO, US, appointment - In February, WPP Media promoted Nancy Hall to
the position of CEO of the US business. Nancy was previously WPP Media's Chief
Client Officer and, before that, North America CEO at Mindshare. She brings
nearly 25 years of experience, having worked across various roles within
advertising agencies. Throughout her career, she has consistently built
modern, technology-driven organisations and brings a combination of strategic
vision and expertise across data, technology, programmatic and analytics.
Corporate governance, sustainability and ESG
· Annual and Sustainability Reports - Our 2025 Annual Report
(https://www.wpp.com/en/investors/annual-report-2025) was published in March
2026. The report provides a comprehensive overview of WPP's financial results,
strategy and future growth initiatives, while including important updates on
corporate governance and sustainability. Additional context on ways WPP is
working to deliver against its ESG activities can be seen in our 2025
Sustainability Report
(https://www.wpp.com/en/sustainability/sustainability-report-2025) .
Business segment and regional analysis
Business segments - revenue analysis
£ million Q1 2026 Q1 2025(1) +/(-) % reported +/(-) % LFL
Global Integrated Agencies 2,686 2,876 (6.6) (4.4)
Public Relations 165 176 (6.3) (2.4)
Specialist Agencies 179 191 (6.3) 0.7
Total Group 3,030 3,243 (6.6) (4.0)
Business segments - revenue less pass-through costs analysis
£ million Q1 2026 Q1 2025(1) +/(-) % reported +/(-) % LFL
Global Integrated Agencies 1,950 2,146 (9.1) (7.4)
Public Relations 157 167 (6.0) (2.6)
Specialist Agencies 153 169 (9.5) (2.3)
Total Group 2,260 2,482 (8.9) (6.7)
Regional - revenue analysis
£ million Q1 2026 Q1 2025 +/(-) % reported +/(-) % LFL
N. America 1,121 1,257 (10.8) (5.2)
United Kingdom 469 494 (5.1) (5.2)
W Cont. Europe 656 639 2.7 0.4
AP, LA, AME, CEE 784 853 (8.1) (5.2)
Total Group 3,030 3,243 (6.6) (4.0)
Regional - revenue less pass-through costs analysis
£ million Q1 2026 Q1 2025 +/(-) % reported +/(-) % LFL
N. America 862 992 (13.1) (7.8)
United Kingdom 344 368 (6.5) (6.6)
W Cont. Europe 473 487 (2.9) (4.7)
AP, LA, AME, CEE 581 635 (8.5) (6.9)
Total Group 2,260 2,482 (8.9) (6.7)
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to be,
"forward-looking statements". Forward-looking statements give the Company's
current expectations or forecasts of future events.
These forward-looking statements may include, among other things, plans,
objectives, beliefs, intentions, strategies, projections and anticipated
future economic performance based on assumptions and the like that are subject
to risks and uncertainties. These statements can be identified by the fact
that they do not relate strictly to historical or current facts. They use
words such as 'aim', 'anticipate', 'believe', 'estimate', 'expect',
'forecast', 'guidance', 'intend', 'may', 'will', 'should', 'potential',
'possible', 'predict', 'project', 'plan', 'target', and other words and
similar references to future periods but are not the exclusive means of
identifying such statements. As such, all forward-looking statements involve
risk and uncertainty because they relate to future events and circumstances
that are beyond the control of the Company. Actual results or outcomes may
differ materially from those discussed or implied in the forward-looking
statements. Therefore, you should not rely on such forward-looking statements,
which speak only as of the date they are made, as a prediction of actual
results or otherwise. Important factors which may cause actual results to
differ include but are not limited to: the unanticipated loss of a material
client or key personnel; delays, suspensions or reductions in client
advertising budgets; shifts in industry rates of compensation; regulatory
compliance costs or litigation; changes in competitive factors in the
industries in which we operate and demand for the Group's products and
services; changes in client advertising, marketing and corporate
communications requirements; the Group's inability to realise the future
anticipated benefits of acquisitions; failure to realise the Group's
assumptions regarding goodwill and indefinite lived intangible assets; natural
disasters or acts of terrorism; the Company's ability to attract new clients;
the economic and geopolitical impact of conflicts; the risk of global economic
downturn; slower growth, increasing interest rates and high and sustained
inflation; tariffs and other trade barriers; supply chain issues affecting the
distribution of the Group's clients' products; technological changes and risks
to the security of IT and operational infrastructure, systems, data and
information resulting from increased threat of cyber and other attacks;
effectively managing the risks, challenges and efficiencies presented by using
Artificial Intelligence (AI) and Generative AI technologies and partnerships
in the Group's business; risks related to the Group's environmental, social
and governance goals and initiatives, including impacts from regulators and
other stakeholders, and the impact of factors outside of the Group's control
on such goals and initiatives; the Company's exposure to changes in the values
of other major currencies (because a substantial portion of its revenues are
derived and costs incurred outside of the UK); and the overall level of
economic activity in the Company's major markets (which varies depending on,
among other things, regional, national and international political and
economic conditions and government regulations in the world's advertising
markets). In addition, you should consider the risks described in Item 3D,
captioned 'Risk Factors' in the Company's most recent Annual Report on Form
20-F, which could also cause actual results to differ from forward-looking
information. Neither the Company, nor any of its directors, officers or
employees, provides any representation, assurance or guarantee that the
occurrence of any events anticipated, expressed or implied in any
forward-looking statements will actually occur. Accordingly, no assurance can
be given that any particular expectation will be met and investors are
cautioned not to place undue reliance on the forward-looking statements.
Other than in accordance with its legal or regulatory obligations (including
under the Market Abuse Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Company undertakes
no obligation to update or revise any such forward-looking statements, whether
as a result of new information, future events or otherwise.
Any forward-looking statements made by or on behalf of the Group speak only as
of the date they are made and are based upon the knowledge and information
available to the Directors at the time.
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