WPP plc (LSE:WPP) reported third-quarter 2026 revenue of £3.27 billion, an increase of 0.5% year on year, as improving performance in its media and production businesses helped offset continued weakness in creative services.
The advertising and marketing services group reported revenue less pass-through costs of £2.41 billion, representing a 2.0% decline on a reported basis and a 2.1% decrease on a like-for-like basis.
Although underlying revenue remained under pressure, WPP said its third-quarter performance was consistent with expectations and showed sequential improvement as the company continued implementing its Elevate28 transformation strategy.
The group maintained its full-year guidance, including an expected headline operating profit margin of between 12% and 13%, and reiterated its objective of returning to organic growth during 2027.
Third-Quarter Revenue Rises 0.5% to £3.27 Billion
WPP reported revenue of £3.27 billion for the three months to September 2026, compared with £3.26 billion in the corresponding period last year.
Revenue increased 0.5% on both a reported and like-for-like basis.
However, revenue less pass-through costs declined to £2.41 billion from £2.46 billion a year earlier.
This represented a reported reduction of 2.0% and a like-for-like decline of 2.1%.
For the first nine months of 2026, total revenue reached £9.65 billion, down 2.8% on a reported basis and 1.9% like for like.
Revenue less pass-through costs for the nine-month period declined 4.4% to £7.16 billion, equivalent to a 3.9% like-for-like decrease.
WPP said the third-quarter performance reflected an improving underlying trend compared with earlier periods of the year.
The company continues to expect revenue less pass-through costs to decline by a low to mid-single-digit percentage during the second half of 2026, with fourth-quarter performance anticipated towards the better end of that range.
WPP Media Returns to Growth as Creative Revenue Declines
WPP’s Global Integrated Agencies business reported a 2.1% like-for-like decline in revenue less pass-through costs during the third quarter.
This represented an improvement from the 2.8% decline recorded in the second quarter.
WPP Media returned to growth, reporting a 0.3% like-for-like increase following a 2.8% decline in the preceding quarter.
The improvement reflected stronger spending trends among existing clients, contributions from new account wins and more favourable comparative figures.
WPP Production also delivered growth, with revenue less pass-through costs increasing 2.5% like for like, compared with 1.3% growth in the second quarter.
The production business benefited from new client assignments and stronger activity across Asia-Pacific and Latin America.
In contrast, WPP Creative reported a 5.1% like-for-like decline, compared with a 3.5% reduction in the second quarter.
The company attributed the weaker performance to reduced client spending, partially offset by contributions from recently secured business.
Within the creative division, public relations returned to growth, while brand and design agencies recorded mid-single-digit growth during the quarter.
Regional Performance Remains Mixed
WPP reported like-for-like declines in revenue less pass-through costs across all four of its geographic regions.
North America declined 1.8%, improving from a 4.3% reduction in the second quarter.
The improvement reflected better performance at WPP Media, although WPP Creative continued to weigh on regional results.
Europe, the Middle East and Africa reported a 1.7% decline, compared with a 3.0% reduction in the preceding quarter.
Within the region, the United Kingdom declined 1.2%, improving from a 5.5% fall in the second quarter, while Germany returned to growth with an increase of 2.4%.
However, the Middle East and Africa business declined 12.4%, reflecting continued geopolitical uncertainty.
Asia-Pacific reported a 4.3% reduction, reversing the 0.3% growth recorded in the second quarter.
China declined 8.7%, compared with growth of 15.6% in the preceding period, with WPP attributing the change partly to timing factors.
India returned to growth, increasing 2.9%, while Australia declined 4.8%.
Latin America recorded a 1.2% like-for-like decline, reflecting weaker performance in Mexico following previous client losses.
Automotive and Healthcare Clients Deliver Growth
Performance varied across WPP’s major client sectors during the third quarter.
Automotive clients generated like-for-like growth of 6.7% in revenue less pass-through costs, while Healthcare and Pharmaceuticals increased 4.3%.
However, several other sectors continued to experience weaker demand.
Consumer Packaged Goods declined 6.4%, while Technology and Digital Services fell 3.9%.
Retail revenue less pass-through costs decreased 6.0%.
Telecommunications, Media and Entertainment recorded a 15.7% decline, while Financial Services fell 8.9%.
WPP’s top 25 clients reported a 2.7% like-for-like reduction in revenue less pass-through costs, improving from a 3.2% decline in the second quarter.
The company said the performance continued to reflect the impact of client assignments lost during the previous year.
Coca-Cola, DoorDash and Waymo Among Major Client Wins
WPP reported several new business wins and contract renewals during the third quarter, supporting its efforts to stabilise client activity.
The company retained its longstanding global media partnership with The Coca-Cola Company, excluding North America, Japan and South Korea, which were not included in the review.
WPP also expanded its global media relationship with DoorDash and secured an appointment as Waymo’s media partner across North America and EMEA.
Other agreements included an integrated content partnership with Nestlé in China, covering creative and production services.
TurboTax appointed WPP for digital video and social content, while the company secured additional media business from Godrej Consumer Products across several international markets.
WPP was also selected as an integrated agency partner for voter communications by the UK’s Electoral Commission.
The company said these wins and renewals reflected continued demand for its integrated media, creative and technology services.
Elevate28 Strategy Targets £250 Million in Annualised Savings
WPP continued implementing its Elevate28 transformation programme during the quarter.
The strategy is designed to simplify the group’s operating structure, strengthen its integrated service offering and improve financial performance.
The first phase, covering 2026, focuses on stabilising business performance and reducing costs.
WPP is targeting gross annualised cost savings of £250 million by the end of 2026, equivalent to approximately £100 million of gross savings during the year.
The company is also evaluating potential asset disposals and expects disposal-related activity to generate at least £200 million in cash proceeds.
The second phase, scheduled for 2027, aims to return the business to organic growth, rebuild margins and reduce leverage.
From 2028 onwards, the group intends to accelerate growth through greater integration of media, creative, production and enterprise solutions, alongside expanded use of AI-enabled workflows.
WPP said it remains focused on maintaining an investment-grade balance sheet throughout the programme.
AI Investment and Technology Partnerships Continue
WPP continued investing in artificial intelligence, data infrastructure and production capabilities during the third quarter.
In September, the company opened Devon’s Point, a 34,000-square-foot production facility in East London.
The site combines AI-enabled virtual production technology, modular studio facilities and post-production capabilities.
WPP also expanded its Open Intelligence data network, adding 48 new data partners during the quarter.
The additions increased its total number of data partnerships to almost 400.
The company also announced an expanded strategic partnership with Kyndryl, covering enterprise transformation, marketing services and joint commercial initiatives.
Separately, WPP’s Burson business acquired cognitive AI company Limbik, bringing additional predictive intelligence capabilities into the group.
These developments form part of WPP’s strategy to integrate AI-enabled tools into its media, creative and enterprise services.
Adjusted Net Debt Falls to £3 Billion
WPP reported adjusted net debt of £3.0 billion at 30 September 2026, compared with £3.6 billion a year earlier.
Average adjusted net debt over the preceding 12 months was £3.2 billion, down from £3.4 billion at the corresponding point in 2025.
The company noted that accounting changes under IFRS 9 reduced reported adjusted net debt by £214 million at the end of September 2026.
The same changes reduced the rolling 12-month average adjusted net debt figure by £167 million.
WPP continues to expect adjusted operating cash flow before working capital of between £800 million and £900 million for 2026.
Excluding anticipated restructuring costs associated with historical programmes and Elevate28, the company expects the equivalent figure to be between £1.0 billion and £1.1 billion.
Total cash restructuring costs are forecast at approximately £250 million, including £190 million associated with Elevate28 and £60 million relating to earlier programmes.
Chief Executive Highlights Progress Towards 2027 Recovery
WPP Chief Executive Officer Cindy Rose said the company remained focused on stabilising performance and preparing for the next phase of its transformation strategy.
“We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP. Our integrated client proposition and modern data solutions are gaining traction with both new and existing clients.
“Client demand remains healthy for our AI-enabled media, creative, production and enterprise solutions, powered by our agentic marketing platform WPP Open. Winning competitive pitches to renew long-standing partnerships with clients like The Coca-Cola Company and DoorDash provides further evidence of commercial momentum and client confidence in WPP’s ability to drive brand differentiation and business growth at a global scale.”
Rose said the improving quarterly performance supported management’s confidence in the company’s strategy and its objective of returning to growth during 2027.
WPP Outlook
WPP has maintained its financial guidance for 2026 despite continued pressure on underlying revenue.
The group expects like-for-like revenue less pass-through costs to decline by a low to mid-single-digit percentage during the second half, with fourth-quarter performance towards the better end of that range.
Headline operating profit margin guidance remains between 12% and 13%.
Adjusted operating cash flow before working capital is expected to reach £800 million to £900 million.
The company also expects capital expenditure of approximately £190 million and continues to target at least £200 million in cash proceeds from disposal-related activity.
Management’s immediate priorities include completing the stabilisation phase of Elevate28, delivering cost savings and supporting the contribution from recent client wins.
WPP continues to target a return to organic growth during 2027, followed by further margin improvements and accelerated growth from 2028 onwards.
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