First Quarter 2026 Trading Update

First Quarter 2026 Trading Update

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Q1 performance in line with expectations and FY guidance reiterated; focus on disciplined execution of Elevate28 plan

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Q1 revenue of £3,030m was down 6.6% YoY on a reported basis and down 4.0% like-for-like (LFL), while revenue less pass-through costs of £2,260m was down 6.7% LFL. Performance in the quarter is consistent with expectations and guidance given at the preliminary results in February. We note ongoing uncertainty in the near-term given events in the Middle East, but we continue to expect 2026 LFL revenue less pass-through costs to decline in the mid to high-single digits in the first half of 2026 with an improving trajectory in the second half and headline operating profit margin to be 12% to 13%.

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Cindy Rose OBE, Chief Executive Officer of WPP, said:

"Building a simpler, integrated WPP - powered by WPP Open - is resonating with clients and driving strong new business. 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.

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"Consistent organic growth remains our North Star. While it will take time to outpace historical losses, our Q1 results are in line with expectations and ahead of Q4 2025.

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"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."

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Conference call at 9.30am BST/4.30am EDT:

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Dial-in details: UK +44 (0) 20 3936 2999; US +1 646 233 4753; Passcode: 354598

Webcast: Live listen-only webcast and replay will be available here.

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^1. Percentage change in reported sterling.

^2. Like-for-like. LFL comparisons are calculated as follows: current year, constant currency actual results (which include acquisitions from the relevant date of completion) are compared with prior year, constant currency actual results, adjusted to include the results of acquisitions and disposals for the commensurate period in the prior year.

Q1 2026 performance

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Financial outlook for 2026

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First quarter 2026 overview

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Revenue in the first quarter was £3,030m, down 6.6% from £3,243m in Q1 2025, and down 4.0% LFL. Revenue less pass-through costs was £2,260m, down 8.9% from £2,482m in Q1 2025, and down 6.7% LFL.

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Segmental review

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Business segments - revenue less pass-through costs

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Global Integrated Agencies LFL revenue less pass-through costs declined 7.4% (Q1 2025: -2.8%). WPP Media LFL declined 8.5% (Q1 2025: -0.9%) driven by prior year client losses, but was a sequential improvement from Q4 2025 (-10.8%).

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Other Global Integrated Agencies declined 6.4% LFL (Q1 2025: -4.4%), with our creative agencies in aggregate down mid to high-single digits. WPP Production (launched in February 2026 and built around Hogarth) grew low single digit against a tough comparison (Q1 2025: high-single-digit growth).

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Public Relations LFL declined 2.6% (Q1 2025: -6.6%). Burson saw improving trends with growth in North America supported by better new business, offset by declines in Asia and the Middle East. Europe is stabilising with solid new business momentum.

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Specialist Agencies was down 2.3% in Q1 2026 (Q1 2025: +1.2%). CMI Media Group, our specialist healthcare media planning and buying agency, delivered high-single-digit LFL growth, building on double-digit growth in 2025, while Landor and Design Bridge and Partners continued to grow, supported by spend from existing clients. However, pressure on the longer tail of agencies weighed on overall performance.

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^1. Prior year figures have been restated to reflect the reallocation of a number of businesses between Global Integrated Agencies and Specialist Agencies.

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Regional segments - revenue less pass-through costs

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North America declined 7.8% LFL (Q1 2025: -0.1%), a slight sequential deterioration relative to Q4 2025 (-7.3%). The quarter saw the full impact of prior year client losses at WPP Media and client spending cuts at Ogilvy and AKQA, with pressure centred on CPG and Tech & Digital Services. Healthcare and Automotive showed positive trends in the quarter.

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The United Kingdom declined 6.6% (Q1 2025: -5.5%), a sequential improvement from Q4 2025 (-9.2%). Prior year client losses and pressure on client spend, particularly in CPG and Automotive, offset positive trends in Retail.

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Western Continental Europe saw a 4.7% decline (Q1 2025: -4.5%). Germany and France continued to decline on Automotive and CPG client spending pressures and Spain was also slightly down, while Italy returned to growth.

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Rest of World declined 6.9% (Q1 2025: -3.8%), driven by Asia Pacific (-8.2%). India grew 1.0% on new business wins (particularly at WPP Media) against a tough comparison (Q1 2025: +5.5%), offset by China declines (-12.2%) on continued spending pressures and client losses. Middle East & Africa declined 11.1% on cuts to client spending caused by geopolitical tensions in the Middle East, with further declines in Latin America (-3.4%) and Central & Eastern Europe (-0.4%).

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Top five markets - revenue less pass-through costs

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Client sector - revenue less pass-through costs

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^1. Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe.

^2. Proportion of WPP revenue less pass-through costs in Q1 2026; table made up of clients representing 82% of WPP total revenue less pass-through costs.

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Balance sheet highlights

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Average adjusted net debt (for the last 12 month rolling period) at 31 March 2026 was £3.3bn¹, compared to £3.4bn at 31 March 2025, and £3.4bn at 31 December 2024.

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Adjusted net debt at 31 March 2026 was £3.4bn¹, against £3.6bn as at 31 March 2025.

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In March 2026, WPP issued US$600m of 6.5% bonds (which was swapped to €519m at 5.45%) and matures March 2036. The bond raising was oversubscribed, reflecting strong investor demand.

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Financial outlook

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We are reaffirming our guidance for 2026 as follows:

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Like-for-like revenue less pass-through costs decline in the mid to high-single digits in the first half of 2026 with an improving trajectory in the second half

Headline operating profit margin expected to be 12% to 13%

Adjusted operating cash flow before working capital of £800m to £900m

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Other 2026 modelling assumptions:

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^1. The Group adopted the IFRS 9 amendments effective 1 January 2026. This increased cash and cash equivalents and reduced adjusted net debt by £180m as at 1 January 2026. As at 31 March 2026, the impact of these amendments was such that cash and cash equivalents were higher, and adjusted net debt was lower, by £215m. Further, the 12-month rolling average adjusted net debt as at 31 March 2026 was £172m lower, calculated by applying the amendment for the period 1 April 2025 to 31 March 2026.

^2. Headline tax as a % of headline profit before tax.

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Q1 2026 highlights

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Below we highlight key developments from Q1 across the Group:

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Clients

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Technology

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People

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Corporate governance, sustainability and ESG

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Business segment and regional analysis

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Business segments - revenue analysis

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Business segments - revenue less pass-through costs analysis

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Regional - revenue analysis

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Regional - revenue less pass-through costs analysis

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Cautionary statement regarding forward-looking statements

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This document contains statements that are, or may be deemed to be, "forward-looking statements". Forward-looking statements give the Company's current expectations or forecasts of future events.

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These forward-looking statements may include, among other things, plans, objectives, beliefs, intentions, strategies, projections and anticipated future economic performance based on assumptions and the like that are subject to risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as 'aim', 'anticipate', 'believe', 'estimate', 'expect', 'forecast', 'guidance', 'intend', 'may', 'will', 'should', 'potential', 'possible', 'predict', 'project', 'plan', 'target', and other words and similar references to future periods but are not the exclusive means of identifying such statements. As such, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that are beyond the control of the Company. Actual results or outcomes may differ materially from those discussed or implied in the forward-looking statements. Therefore, you should not rely on such forward-looking statements, which speak only as of the date they are made, as a prediction of actual results or otherwise. Important factors which may cause actual results to differ include but are not limited to: the unanticipated loss of a material client or key personnel; delays, suspensions or reductions in client advertising budgets; shifts in industry rates of compensation; regulatory compliance costs or litigation; changes in competitive factors in the industries in which we operate and demand for the Group's products and services; changes in client advertising, marketing and corporate communications requirements; the Group's inability to realise the future anticipated benefits of acquisitions; failure to realise the Group's assumptions regarding goodwill and indefinite lived intangible assets; natural disasters or acts of terrorism; the Company's ability to attract new clients; the economic and geopolitical impact of conflicts; the risk of global economic downturn; slower growth, increasing interest rates and high and sustained inflation; tariffs and other trade barriers; supply chain issues affecting the distribution of the Group's clients' products; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; effectively managing the risks, challenges and efficiencies presented by using Artificial Intelligence (AI) and Generative AI technologies and partnerships in the Group's business; risks related to the Group's environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of the Group's control on such goals and initiatives; the Company's exposure to changes in the values of other major currencies (because a substantial portion of its revenues are derived and costs incurred outside of the UK); and the overall level of economic activity in the Company's major markets (which varies depending on, among other things, regional, national and international political and economic conditions and government regulations in the world's advertising markets). In addition, you should consider the risks described in Item 3D, captioned 'Risk Factors' in the Company's most recent Annual Report on Form 20-F, which could also cause actual results to differ from forward-looking information. Neither the Company, nor any of its directors, officers or employees, provides any representation, assurance or guarantee that the occurrence of any events anticipated, expressed or implied in any forward-looking statements will actually occur. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements.

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Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation, the UK Listing Rules and the Disclosure and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

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Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors at the time.