No surprises in WPP Q1 results
WPP has reported a Quarter 1 performance consistent with expectations and guidance provided in the preliminary results in February.
"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," says Cindy Rose, WPP CEO (Image source: @ WPP WPP
WPP has reported a quarter 1 performance, it says is consistent with expectations and guidance given at the preliminary results in February.
Q1 revenue of £3,030m 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.
The Group continues 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%, while noting the ongoing uncertainty in the near-term given events in the Middle East.
Cindy Rose OBE, chief executive officer of WPP, says she is encouraged by the network’s momentum.
“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.”
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 passthrough costs down 2.6%, while Specialist Agencies was down 2.3%.
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.
CMI Media Group, its 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.
By geography, North America LFL was -7.8%, the UK was -6.6%, Western Continental Europe was -4.7% and the 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.
- ClientsWPP’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 several 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 many new data partnerships.
It continues to make progress on potential asset disposals and will provide updates in due course, as appropriate.
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 – It continues to anticipate adjusted operating cash flow before working capital of £800m to £900m.
Excluding anticipated restructuring costs associated with historical plans and the Elevate28strategy, it would anticipate adjusted operating cash flow before working capital of£1.0bn to £1.1bn.