WPP H1 Earnings Call Highlights

Revenue trends improved sequentially: WPP’s like-for-like revenue less pass-through costs fell 4.7% in the first half of 2026, but the decline narrowed to 2.8% in the second quarter from 6.7% in the first quarter. Management expects a low- to mid-single-digit decline in the second half and still targets a return to growth in 2027.

Margins and balance-sheet measures strengthened: First-half headline operating profit rose to £398 million, with an 8.4% margin, while adjusted net debt declined £326 million year over year to £2.9 billion. WPP maintained its 12%-13% full-year margin guidance and £0.15-per-share dividend.

Restructuring and new-business momentum continued: WPP reported major integrated client wins, launched Enterprise Solutions and expanded AI and technology partnerships. The company remains on track for £500 million in annualized Elevate28 savings, alongside more than £200 million of expected 2026 disposal proceeds.

WPP NYSE: WPP reported a 4.7% like-for-like decline in revenue less pass-through costs for the first half of 2026, while management pointed to improving quarterly trends, new-business momentum and progress on its Elevate28 restructuring plan. Chief Executive Officer Cindy Rose said the company is in the stabilization phase of its three-year strategy, which is intended to simplify WPP into a single company with four operating units: Creative, Media, Production and Enterprise Solutions. The company expects to return to growth during 2027, followed by an acceleration phase from 2028.

“The headline is that we’re on track with where we said we would be, stabilizing the business and delivering on our ambitions with clear evidence of progress across all leading indicators,” Rose said.

Like-for-like revenue less pass-through costs declined 2.8% in the second quarter, improving from a 6.7% decline in the first quarter. Chief Financial Officer Joanne Wilson said the first-half result was consistent with WPP’s prior guidance for a mid- to high-single-digit decline. WPP Media recorded a 2.8% decline in the second quarter, compared with an 8.3% decline in the first quarter. WPP Creative’s revenue declined 4.9% in the quarter but also improved sequentially, according to Wilson. WPP Production continued to post positive growth, supported by new business wins. By region, North America declined 4.3% in the second quarter, versus a 7.8% drop in the first quarter. EMEA declined 3% in the quarter, while Latin America grew 0.9% and Asia-Pacific grew 0.3%. China returned to growth, rising 2.6% in the first half and posting double-digit growth in the second quarter. Wilson said the quarterly performance included timing benefits and should not be expected to continue at that level in the second half, though WPP expects the market to continue stabilizing. India’s second-quarter performance moderated due largely to the timing of events, with growth expected to resume in the second half. WPP said auto and healthcare returned to growth in the second quarter. Consumer packaged goods declined 6%, while technology clients declined 8.9%, with both categories affected by assignment losses. The company’s top 25 clients declined 3.2% in the second quarter; excluding assignment losses, that group returned to growth, Wilson said.

Headline operating profit was £398 million in the first half, producing an 8.4% margin, up 20 basis points from a year earlier. The improvement reflected cost savings and lower headline severance costs, partly offset by investments in growth initiatives and incentives. Headline diluted earnings per share fell to £0.151 from £0.20 a year earlier. Wilson attributed the decrease ...