WPP plc

WPP reported reported revenue less pass-through costs of GBP 4.7 billion, down 5.6% period on period. Like-for-like revenue less pass-through costs declined 4.7% in H1, with Q2 down 2.8% after Q1 was down 6.7%. Headline operating profit was GBP 398 million and headline operating margin was 8.4%, up 20 basis points year on 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, and adjusted net debt was GBP 2.9 billion, down GBP 326 million year on year. For the full year, management 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, and at least GBP 200 million of disposal-related cash contribution.

Cindy Rose said WPP is on track with Elevate28, emphasizing stabilization, simplification and better execution across the company. She highlighted the shift to a single-company operating model, the launch of WPP Media, Creative, Production and Enterprise Solutions, and the role of WPP Open and AI partnerships in connecting the business. Her tone was confident but measured: she repeatedly said the journey will not be linear, while stressing that leading indicators, client wins and retention are showing real progress.

Joanne Wilson focused on the improving sequential performance and the mechanics behind the margin and cash flow bridge. She cited GBP 398 million of headline operating profit, 8.4% margin, 15.1p headline EPS, GBP 309 million of adjusted operating cash flow pre-working capital, and GBP 2.9 billion of adjusted net debt, noting the debt reduction reflected free cash flow and an IFRS 9 benefit. On margins, she said H1 benefited from lower severance and prior-year cost actions, while the second half will carry more restructuring, incentive rebuild and investment, with full-year headline operating margin still expected at 12% to 13%.

Analysts focused on the net new business contribution to 2026 and the outlook for 2027, the improvement in existing-client spend, China, AI pricing pressure, second-half margin phasing, disposals and incentives. Management said gross losses are at the top end of the 500 to 600 bps range, gross wins are ahead of last year, and net new business should remain a drag this year but ease quarter by quarter; it was too early to quantify 2027. On China, WPP said Q2 improved sharply but some timing effects should not be extrapolated. On disposals, it said at least GBP 200 million of cash proceeds are expected in 2026 net of tax, with more likely in 2027.