Mumbai: WPP reported a decline in revenue for the first quarter of 2026, as the impact of prior-year client losses, muted advertising spends, and macroeconomic pressures continued to weigh on performance. However, the company maintained that results were in line with expectations and pointed to early signs of stabilisation under its ongoing transformation strategy.
The advertising and marketing services group posted revenue of £3.03 billion, down 6.6% year-on-year on a reported basis and 4.0% on a like-for-like (LFL) basis. Revenue less pass-through costs—a key industry metric—stood at £2.26 billion, declining 6.7% LFL .
Cindy Rose OBE, Chief Executive Officer of WPP, said the company is beginning to see encouraging momentum despite the decline. “Building a simpler, integrated WPP – powered by WPP Open – is resonating with clients and driving strong new business,” she said. “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.”
She added that “consistent organic growth remains our North Star,” noting that while recovery from historical losses will take time, first-quarter performance was ahead of the previous quarter and aligned with internal expectations.
Core Business Under Pressure
WPP’s core Global Integrated Agencies segment, which accounts for the bulk of its business, saw LFL revenue less pass-through costs decline 7.4%. Within this, WPP Media fell 8.5%, largely due to the full impact of client losses incurred in 2025. Other integrated agencies declined 6.4%, reflecting continued softness in creative services.
In comparison, Public Relations proved relatively resilient, declining 2.6% LFL, while Specialist Agencies dropped 2.3%, supported by growth in healthcare-focused media planning even as smaller units faced pressure .
Regional Weakness Led by North America and China
Performance remained weak across most geographies. North America, WPP’s largest market, declined 7.8% LFL, reflecting reduced client spending and prior account losses. The UK fell 6.6%, while Western Continental Europe dropped 4.7%.
In the rest of the world, performance was mixed. India stood out with 1.0% growth, driven by new business wins, while China declined sharply by 12.2%, weighed down by continued spending cuts and client attrition. The Middle East also saw double-digit declines, impacted by geopolitical tensions .
Broad-Based Sectoral Decline
The slowdown was evident across client sectors, with WPP’s top 25 clients declining 9.4% during the quarter, largely due to assignment losses from the previous year.
Among industry verticals, consumer packaged goods (CPG)—which contributes the largest share of revenue—fell 12.4%, while technology and digital services declined 9.6%. Other sectors such as telecom, media and entertainment, and financial services also recorded double-digit declines.
Relatively more resilient segments included healthcare and pharma (-1.0%) and retail (-1.8%), though these too remained under pressure .
Stabilisation Before Recovery
While the first quarter underscores the continued challenges facing the global advertising market, WPP maintains that its performance is tracking its planned trajectory. The company expects declines to persist in the first half of the year, followed by an improvement in the second half as new business wins begin to translate into revenue.
Rose reiterated confidence in the company’s direction, highlighting client trust and internal execution as key drivers. “I would like to thank our clients and partners for their trust, our shareholders for their continued support and our people for their unwavering commitment as we execute our plan,” she said .
As WPP navigates a transitional phase, the success of its Elevate28 strategy and ability to convert strong new business momentum into sustained growth will be critical in shaping its recovery trajectory through 2026.
