WPP (LSE:WPP) reported first-quarter 2026 revenue of £3.03 billion, marking a 6.6% year-on-year decline. Revenue less pass-through costs fell 6.7% on a like-for-like basis, reflecting continued pressure on client spending across key regions and sectors.
Performance was particularly weak within the Global Integrated Agencies division, especially WPP Media, which was affected by client losses in the prior year and softer demand from consumer goods and technology clients. Regional trends were mixed, with underperformance in China and the Middle East, while India delivered modest growth.
New business momentum and partnerships support strategy
Despite the softer start to the year, management said trading remains in line with expectations and reaffirmed its full-year guidance. The group anticipates a mid- to high-single-digit decline in like-for-like revenue less pass-through costs in the first half, followed by improvement in the second half. Headline operating margins are expected to fall within a 12%–13% range.
WPP highlighted a strengthening pipeline of new business wins, alongside expanded data and technology partnerships with Google Cloud and Adobe. Ongoing asset disposals also form part of its Elevate28 strategy, which aims to streamline operations, stabilise performance and return the business to sustainable organic growth.
Challenging backdrop offset by cash flow and income appeal
The company’s outlook reflects ongoing financial pressures, including losses reported in 2025 and higher leverage, alongside a bearish technical trend with the share price trading below key moving averages.
However, WPP continues to generate solid, albeit declining, cash flow and offers an attractive dividend yield, supporting its appeal to income-focused investors. Management also pointed to cost-saving initiatives and improving new business momentum as factors that could support a recovery over time.
More about WPP
WPP is one of the world’s largest advertising and marketing services groups, offering media buying, creative services, public relations, production and specialist communications to global brands. The company operates through a network of integrated agencies and specialist units, with significant exposure to North America, the UK, Europe and high-growth markets such as India and China.
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