WPP 2025 revenue down 8.1%, beats analyst expectations

WPP

26/02/2026 07:10

Overview

Advertising giant's 2025 revenue fell 8.1% but beat analyst expectations

2025 operating profit dropped 71.2% due to impairments and increased costs

Company unveils Elevate28 strategy to simplify operations and drive growth

Outlook

WPP anticipates LFL revenue less pass-through costs to decline mid to high-single digits in first half of 2026

Company expects 2026 headline operating profit margin between 12% and 13%

WPP forecasts adjusted operating cash flow before working capital of £800m to £900m in 2026

Result Drivers

ORGANIZATIONAL COMPLEXITY - WPP's recent underperformance attributed to excessive complexity and inconsistent strategic execution, per CEO Cindy Rose

ELEVATE28 STRATEGY - WPP announces Elevate28 plan to simplify operations and integrate AI-enabled solutions, aiming for £500m cost savings by 2028

AI TRANSFORMATION - WPP to elevate Enterprise Solutions for AI transformation, creating standalone unit for high-growth demand

Company press release: ID:nRSZ4449Ua

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
GBP 13.55 bln
GBP 11.57 bln (15 Analysts)
FY Operating Margin
2.80%
FY Operating Profit
GBP 382 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 5 "sell" or "strong sell"

The average consensus recommendation for the advertising & marketing peer group is "buy."

Wall Street's median 12-month price target for WPP PLC is GBP355.00, about 30.3% above its February 25 closing price of GBP272.40

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)