WPP (LSE:WPP) reported first-half 2026 revenue of £6.37 billion, down 4.4% on a reported basis and 3.2% on a like-for-like basis. Revenue less pass-through costs declined 4.7% like for like, reflecting the impact of legacy client losses and softer demand across sectors including consumer packaged goods and technology. Despite the weaker top-line performance, the group delivered higher operating profit and improved margins, supported by lower impairment charges and ongoing cost-saving initiatives. WPP also maintained its interim dividend, reduced adjusted net debt and said it expects trading to improve during the second half of the year, with stronger like-for-like performance and higher headline margins.
Management said the first phase of its Elevate28 transformation programme has been successfully implemented, completing the transition to a single integrated operating model. As part of this strategy, WPP has established new business units including WPP Enterprise Solutions, alongside unified WPP Production and WPP Creative divisions, with the aim of increasing collaboration and capturing demand for AI-driven business transformation. The company continues to expand its WPP Open and Open Intelligence platforms while strengthening partnerships with Google, Meta and Amazon Web Services to embed artificial intelligence across its marketing services. Strong new business wins, improved client retention, targeted cost reductions and selective portfolio optimisation remain central to the group’s plan to improve competitiveness and long-term profitability.
Regional performance remained mixed, with weaker trading across North America, EMEA and Asia-Pacific partly offset by growth in production services and improving demand from automotive, healthcare and government clients. While revenue pressures persist, WPP’s ability to expand margins highlights the progress being made in simplifying the business and repositioning the company as a technology-enabled marketing partner focused on integrated services, data and artificial intelligence.
The investment outlook remains balanced. Financial performance continues to be affected by lower revenue, previous losses and higher leverage, while management has cautioned that trading conditions are likely to remain challenging in the near term. However, resilient cash generation, a favourable technical share price trend and an attractive dividend yield provide support, although valuation remains difficult to assess because of the company’s negative price-to-earnings ratio.
About WPP
WPP is one of the world’s largest advertising and marketing services companies, providing media, creative, production and enterprise solutions to global brands across industries including consumer goods, technology, retail, automotive, healthcare and the public sector. The company is transforming from a traditional holding company into a fully integrated organisation built around four operating divisions supported by its WPP Open artificial intelligence and data platform.
Through its Elevate28 strategy, WPP is focused on simplifying its structure, accelerating organic growth, improving operational efficiency and embedding AI-powered technologies across its services. By combining creative expertise with advanced data analytics and strategic technology partnerships, the group aims to strengthen client relationships and deliver sustainable long-term growth.
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