WPP plc

Reported H1 revenue less pass-through costs was GBP 4.7 billion, down 5.6% period-on-period. Like-for-like revenue less pass-through costs declined 4.7% in H1 and 2.8% in Q2. Headline operating profit was GBP 398 million and headline operating margin was 8.4%, up 20 basis points year over year. Headline diluted EPS was 15.1p, down from 20p last year. Adjusted operating cash flow pre-working capital was GBP 309 million in H1; adjusted free cash flow over the last 12 months was GBP 738 million; adjusted net debt was GBP 2.9 billion, down GBP 326 million year over year. For full-year 2026, WPP still expects like-for-like revenue less pass-through costs to decline low to mid-single digits in H2, headline operating margin to be 12% to 13%, adjusted operating cash flow pre-working capital of GBP 800 million to GBP 900 million (or GBP 1 billion to GBP 1.1 billion excluding restructuring costs), and at least GBP 200 million of disposal-related cash flow. Management also repeated that 2026 should be the low point for profitability, with margin rebuilding from 2027 and a return to growth in 2027.

Cindy Rose framed the quarter as evidence that Elevate28 is working: WPP is moving from a holding company model to a simpler, more integrated single company with four operating units, all underpinned by WPP Open. She emphasized that new business wins, improved client retention, strategic tech partnerships, cost savings and portfolio actions are the leading indicators she watches, and said the business is stabilizing and becoming more competitive. Her tone was confident but measured, repeatedly noting that the journey will not be linear and that the company is still in the early stages of a three-year plan.

Joanne Wilson highlighted the key financial bridge: H1 like-for-like decline of 4.7%, Q2 down 2.8%, headline operating profit of GBP 398 million, margin of 8.4%, and headline EPS of 15.1p. She said the margin benefited from cost actions and lower severance, but second-half margins should be lower by as much as 200 basis points because investment in growth and rebuilding incentives will step up. On cash, she cited GBP 309 million of adjusted operating cash flow pre-working capital in H1, GBP 738 million of adjusted free cash flow over the last 12 months, and adjusted net debt of GBP 2.9 billion; she also said leverage should remain elevated in 2026 before improving in 2027. She reiterated the full-year tax rate expectation of 33% to 34%, a 15p full-year dividend assumption, and at least GBP 200 million of disposal-related cash inflow in 2026.

Analysts pressed on how much net new business will matter in 2027, but management said it is too early to quantify that and focused instead on 2026, where net new business should still be a drag but less so each quarter. On client spending, Joanne said the Q2 improvement came mainly from better trends in auto and healthcare, with China stabilizing after prolonged declines and returning to double-digit growth in Q2, though she cautioned that level should not be expected to continue. On enterprise solutions, Cindy said WPP already has about $1.8 billion of revenue and around 10,000 specialists in the area, and that the July 1 launch is about consolidating and scaling those capabilities as a deeply integrated business. Analysts also asked about AI pricing pressure, and Cindy said AI may cause some short-term deflation in pricing, but it should also expand WPP’s footprint through more integrated, higher-value services.