WPP Q1 revenue drops 6.6% amid media setbacks, maintains full-year outlook

WPP reported a challenging start to 2026, with first-quarter revenue declining 6.6% year-on-year to £3,030 million and like-for-like (LFL) revenue falling 4%. Revenue less pass-through costs stood at £2,260 million, marking a 6.7% LFL decline.

Despite the drop, the company said performance was in line with expectations outlined earlier this year and reiterated its full-year guidance. WPP expects a mid- to high single-digit LFL decline in revenue less pass-through costs in the first half of 2026, followed by improvement in the latter half. Headline operating profit margin is projected to remain between 12% and 13%.

CEO Cindy Rose said the company remains focused on achieving consistent organic growth under its Elevate28 restructuring plan. While acknowledging that recovering from historical client losses will take time, she noted that Q1 performance showed sequential improvement over the previous quarter.

Across business segments, Global Integrated Agencies recorded the steepest decline at 7.4% LFL. WPP Media dropped 8.5%, though this marked an improvement from the sharper fall seen in late 2025. Public Relations and Specialist Agencies reported relatively smaller declines of 2.6% and 2.3%, respectively.

Regionally, North America was the weakest market, declining 7.8% LFL due to media account losses and reduced spending from key clients, particularly in consumer packaged goods and technology. The UK and Western Continental Europe also saw declines of 6.6% and 4.7%, respectively. China remained a significant drag within the Rest of World category, falling 12.2%, while India stood out as a rare growth market, rising 1% driven by new business at WPP Media. The Middle East dropped 12.6%, with ongoing uncertainty in the region flagged as a near-term risk.

All major client sectors contracted during the quarter, with CPG—WPP’s largest segment—falling 12.4%. Telecom, media and entertainment, and financial services each declined 12.8%, while technology and digital services dropped 9.6%. Healthcare, pharma, and retail proved more resilient, with marginal declines. The “Other” category was the only segment to post growth.

WPP’s top 25 clients saw revenues fall 9.4%, reflecting prior-year account losses and a high comparison base from early 2025.

However, the company pointed to strong new business momentum, topping J.P. Morgan’s quarterly New Business Rankings for the second consecutive quarter. Key wins included global media duties for Estée Lauder, US mandates from Wendy’s, SC Johnson, and Norwegian Cruise Lines, as well as an integrated global assignment for Jaguar Land Rover. It also retained major accounts including Tesco, Huawei, and Red Bull.

On the technology front, WPP is accelerating its AI push by integrating Google Earth capabilities into its WPP Open platform to enable hyper-local marketing and demand forecasting. The company also expanded its partnership with Adobe to deliver AI-led marketing solutions, combining Adobe’s tools with WPP’s proprietary systems.

While near-term pressures persist, WPP is banking on technology investments and new business momentum to drive a turnaround in the second half of the year.