WPP has reported first-quarter 2026 revenue of A$5.7 billion, down 6.6 per cent on a reported basis and 4.0 per cent like-for-like, as the global advertising group continues its Elevate28 turnaround plan.
Revenue less pass-through costs came in at A$4.3 billion, down 8.9 per cent reported and 6.7 per cent like-for-like. WPP said the result was in line with expectations and ahead of its Q4 2025 performance.
The company also reiterated its full-year guidance. It expects like-for-like revenue, less pass-through costs, to decline in the mid- to high-single digits in the first half of 2026, before improving in the second half.
What is WPP’s outlook for 2026?
WPP expects its full-year headline operating profit margin to be between 12 per cent and 13 per cent. Adjusted operating cash flow before working capital is forecast at A$1.5 billion to A$1.7 billion.
Excluding restructuring costs tied to historical programs and the Elevate28 strategy, WPP expects adjusted operating cash flow before working capital of A$1.9 billion to A$2.1 billion.
The group noted ongoing near-term uncertainty linked to events in the Middle East, where revenue less pass-through costs declined 12.6 per cent in the quarter.
Regional performance
North America remained under pressure, with like-for-like revenue less pass-through costs down 7.8 per cent. WPP said the region was affected by the full impact of prior-year client losses at WPP Media and reduced client spending at Ogilvy and AKQA.
The UK declined 6.6 per cent, while Western Continental Europe fell 4.7 per cent. Rest of World was down 6.9 per cent, with India growing 1.0 per cent but China declining 12.2 per cent.
Business segment performance
Global Integrated Agencies reported revenue less pass-through costs of A$3.7 billion, down 7.4 per cent like-for-like. Within that, WPP Media declined 8.5 per cent, driven by prior-year client losses.
Public Relations declined 2.6 per cent like-for-like, while Specialist Agencies fell 2.3 per cent. WPP said CMI Media Group delivered high-single-digit like-for-like growth, while Landor and Design Bridge and Partners continued to grow.
Client trends and new business
WPP’s top 25 clients declined 9.4 per cent in the quarter, reflecting prior-year assignment losses and a tough comparison with Q1 2025. All client sectors declined during the quarter.
The steepest sector declines were in Telecom, Media and Entertainment and Financial Services, both down 12.8 per cent. Consumer packaged goods declined 12.4 per cent, while Tech and Digital Services fell 9.6 per cent.
Despite the revenue decline, WPP said new business momentum continued. The group pointed to assignments and retentions across media, creative and integrated services, including Estée Lauder, Wendy’s, SC Johnson, Norwegian Cruise Line, Tesco, Huawei and Red Bull.
Cindy Rose on WPP’s Elevate28 plan
Cindy Rose OBE, Chief Executive Officer of WPP, said the company’s push to build a simpler, more integrated business was gaining traction with clients.
“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,” Rose said.
Cindy Rose
“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.
“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.”
Balance sheet and transformation costs
Average adjusted net debt for the 12 months to 31 March 2026 was A$6.2 billion, compared to A$6.4 billion at 31 March 2025. Adjusted net debt at the end of the quarter was A$6.4 billion, compared to A$6.8 billion a year earlier.
WPP expects 2026 capital expenditure of around A$358 million. Total cash restructuring costs are expected to be around A$471 million, comprising A$358 million associated with Elevate28 and A$113 million from historical programs.
The company also raised US$600 million, about A$837 million, through 6.5 per cent bonds in March 2026. The raising was swapped to about A$847 million at 5.45 per cent, with maturity in March 2036.
Main image: WPP