WPP Q1 Earnings Call Highlights

Key Points

• WPP reported like‑for‑like revenue less pass‑through costs down 6.7% in Q1 (organic -4%), with a 2.1% FX headwind contributing to an 8.9% reported net revenue decline; WPP Media was the biggest drag, falling 8.5% LFL.
• Management said its Elevate 28 plan is stabilizing the business and net new business momentum strengthened — WPP was ranked #1 in net new business for a second consecutive quarter, winning clients including Estée Lauder, S.C. Johnson, JLR, Norwegian Cruise Line and Wendy’s.
• Balance sheet and guidance: average adjusted net debt was GBP 3.3 billion, WPP issued a $600 million 10‑year bond, and it expects like‑for‑like revenue to decline in the mid‑ to high‑single digits in H1 2026 with a full‑year headline operating margin target of 12%–13% and adjusted operating cash flow before working capital of GBP 800–900 million (GBP 1.0–1.1 billion ex restructuring).

WPP NYSE: WPP reported a first-quarter trading update that showed continued top-line pressure but a modest sequential improvement from late 2025, as management pointed to stabilizing actions under its newly launched Elevate 28 strategy and strengthening net new business momentum.

Q1 results: Revenue decline narrows sequentially

Chief Financial Officer Joanne Wilson said like-for-like revenue less pass-through costs fell 6.7% in the first quarter, while “organic revenue growth,” a metric disclosed by some peers, declined 4%. Wilson said both figures represented a “mild sequential improvement” versus the fourth quarter of 2025 and were “in line with our expectations.”

Foreign exchange was a 2.1% headwind in the quarter, contributing to a reported net revenue decline of 8.9%, while M&A impact was described as negligible.

Segment and regional trends: Media remains the biggest drag

Wilson highlighted that WPP Media posted a like-for-like decline of 8.5% in Q1. While an improvement from a double-digit decline in Q4 2025, she said performance continued to be weighed down by prior gross account losses, and that new business wins from Q4 and Q1 will “take time to ramp up.”

Outside media, Wilson said performance “showed a slight decline quarter-on-quarter,” but added that WPP delivered growth in WPP Production and in larger specialist agencies, including Landor, Design Bridge, and CMI.

Geographically, Wilson said the pattern “largely reflects account losses,” which weighed most heavily on North America and the U.K. She also cited “signs of stabilization” elsewhere, including sequential improvement in Asia-Pacific and “pockets of growth” in India, Italy, and Japan.

The Middle East, which Wilson said represents “just under 2%” of the business, declined 12.6% like-for-like in Q1 following low single-digit growth in Q4 2025. She said that due to the ongoing conflict, the company expects Q1 trends in the region to continue through Q2. In response to a question about monthly performance, Wilson said March was the weakest month of the quarter but “wasn’t as bad as a 30% decline.”

Client dynamics: Losses weigh on top 25, but retention and wins highlighted

Wilson said the Q1 like-for-like decline for WPP’s top 25 clients was 9.4%, reflecting “specific client losses.” However, when asked about underlying performance with existing clients, she said that if the losses were stripped out from the top 25, the decline would be “low single digits.” She also described “polarization” in client spending, particularly in tech and healthcare, and noted that reduced spend seen in some creative agencies beginning in Q2 last year continued into Q1.

On new business, Wilson said Q1 marked the second consecutive quarter in which WPP was ranked number one in net new business by JP Morgan, and the company expected to be ranked number one by COMvergence, which focuses more narrowly on media.

Wilson cited key wins during the quarter including:

• Estée Lauder
• S.C. Johnson
• JLR
• Norwegian Cruise Line

She also noted post-quarter wins including being appointed Wendy’s media buying agency in the U.S. and winning Natura in Brazil.

On retention, Wilson highlighted reappointments and retained mandates for:

• Tesco (U.K. and Central Europe)
• Huawei (China)
• Red Bull (India)

Elevate 28 execution: Partnerships, leadership hires, and product-led pitching

Wilson reiterated that improving organic growth is management’s “North Star,” but emphasized that it is a “lagging metric,” and that the first stage of Elevate 28 is focused on stabilizing the business through net new business, partnerships, operating model changes and cost savings, and asset disposals.

She said WPP was encouraged by progress in Q1 and that plans were “on track.” As examples, Wilson pointed to an expanded partnership with Adobe announced in February and continued expansion of data partnerships supporting WPP’s “open intelligence ecosystem,” including with Trainline in the U.K. and the Salling Group in Denmark.

Wilson also detailed leadership appointments, including Nancy Hall as CEO of WPP Media in the U.S., Angela Steele as U.S. Chief Client Officer for WPP Media, and Andrea Suarez as CEO of WPP Media in LATAM. At the group level, she said Mark Taylor joined as Chief People Officer and Anne-Isabelle Choueiri joined as the company’s first Chief Transformation Officer.

In Q&A, Wilson attributed improvements in media pitching to work led by “Brian and the team,” including a more competitive proposition, a global media platform to standardize delivery across markets, and a clearer data strategy supported by the acquisition of InfoSum, now integrated into Open Intelligence. She also said WPP is “showing up much stronger as an integrated proposition,” citing Wendy’s as an example where the company already had creative work and later won the media business.

Balance sheet, guidance, and reporting changes

On the balance sheet, Wilson said average adjusted net debt was GBP 3.3 billion at March 31 and “continues to come down” year-to-date and year-on-year, aided by a “relatively small” beneficial impact from IFRS 9 amendments effective from the start of 2026. She also said WPP issued a $600 million 10-year bond in March, marking a return to the U.S. credit market “after more than a decade,” extending weighted average maturity to almost 6 years and covering debt maturities through mid-2028.

Wilson reiterated that maintaining an investment-grade balance sheet is central to Elevate 28 and said processes to assess potential sales of certain portfolio assets are “advancing as planned,” though she did not provide additional details.

Looking ahead, WPP maintained its expectation that like-for-like revenue less pass-through costs will decline in the mid- to high-single digits in the first half of 2026, with an “improving trajectory” in the second half. Wilson said Q2 trends are expected to be “broadly similar” to Q1, citing the phasing of net new business and geopolitical uncertainty in the Middle East.

For profitability, she guided to a full-year headline operating profit margin of 12% to 13%, with first-half margins expected to be down due to sales performance and investment in growth drivers. She said in-year cost savings from operating model changes are “skewed to the second half,” and incentives are also expected to rebuild primarily in the second half.

WPP also reiterated adjusted operating cash flow before working capital guidance of GBP 800 million to GBP 900 million, including restructuring costs tied to Elevate 28 and historical programs. Excluding those restructuring costs, Wilson said the company would anticipate GBP 1.0 billion to GBP 1.1 billion.

Finally, Wilson outlined forthcoming reporting changes intended to align disclosures with the new operating model. Beginning with the 2026 half-year, WPP plans to shift from three segments to one “global integrated agencies” segment, with additional disclosure on operating performance across WPP Media, WPP Production, and WPP Creative, including like-for-like growth and net sales splits but not profitability metrics. Geographic reporting is expected to move to four regions: North America, Latin America, EMEA, and Asia Pacific. From 2027, WPP intends to provide like-for-like growth and net sales split disclosure for WPP Enterprise Solutions.

Wilson said the company will host a series of webinars to “double-click” on key operating units, starting with WPP Media, and expects to report first-half results in early August with a further strategy update at that time.

About WPP NYSE: WPP

WPP plc NYSE: WPP is a British multinational advertising and public relations company headquartered in London, England. Recognized as one of the world's largest communications services groups, WPP provides a wide array of marketing, advertising, media investment management and data consultancy services. Through its integrated network of agencies—among them Ogilvy, Grey, GroupM and Wavemaker—the company delivers creative content, brand strategy, digital transformation and media planning solutions to clients across virtually every industry.

Established in 1971 by Martin Sorrell as Wire and Plastic Products, the firm underwent a strategic transformation in the 1980s, focusing on acquisitions that expanded its capabilities into advertising and communications.

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