WPP posts £3,274 million in third-quarter revenue despite decline in underlying activity
Key Facts
On 29 October, WPP published its trading update for the third quarter and the nine months ended 30 September, reporting quarterly revenue of £3,274 million, up 0.5% year on year on a like-for-like basis. The company said third-quarter performance was in line with its expectations, but growth in gross revenue was not matched by an improvement in the measure that excludes pass-through costs. Revenue less those costs was £2,411 million, down 2.0% on a reported basis and 2.1% like for like. The divergence between the two figures reflects continued pressure on the group’s underlying activity, despite gross revenue holding steady compared with the previous year. WPP said the release was a quarterly trading update.
Third-quarter performance improved on the first-half trajectory for revenue less pass-through costs, although it remained negative. In the first six months of 2026, WPP recorded revenue of £6,373 million, down 4.4% on a reported basis and 3.2% like for like, while revenue less pass-through costs fell 4.7% to £4,745 million. Revenue in the first half of the previous year was £6,663 million, providing context for the year-on-year comparison. Core operating profit in the first half was £398 million, compared with £412 million, while its margin rose to 8.4% from 8.2%. The board recommended an interim dividend of 7.5 pence per share, with the intention of maintaining total annual dividends at 15 pence per share in 2026.
Within Global Integrated Agencies, revenue less pass-through costs fell 2.1% like for like in the third quarter. WPP Media returned to growth, posting a 0.3% increase, while WPP Production revenue rose 2.5%. This was offset by a 5.1% decline at WPP Creative, leaving overall group performance under pressure. Chief Executive Cindy Rose said client demand remained healthy for the company’s media, creative, production and AI-enabled enterprise solutions. She added that winning new assignments and renewing partnerships reflected commercial momentum and client confidence.
The decline extended across all four geographic regions disclosed by the company on a like-for-like basis. Revenue fell 1.8% in North America and 1.7% in Europe, the Middle East and Africa, while Asia Pacific recorded the largest regional decline at 4.3%. Revenue in Latin America fell 1.2%. Among major clients, like-for-like revenue less pass-through costs from the top 25 clients fell 2.7%, compared with a 3.2% decline in the second quarter. The company attributed the third-quarter performance of this group to client assignments lost in the previous year.
At the same time, WPP announced new business wins and client retentions, including Coca-Cola as global media partner, excluding North America, Japan and South Korea, markets that were not part of the contract review. Other names included DoorDash, Nestlé, Uber and Waymo. Despite these gains, the group kept its 2026 core operating margin outlook at 12% to 13%. It also maintained its forecast for adjusted operating cash flow before working capital of between £800 million and £900 million. The company said it was on track to achieve £100 million in internal savings during 2026, as part of its Elevate28 programme, which targets total annual savings of £500 million by 2028.
WPP said it expected like-for-like revenue less pass-through costs to decline at a low-to-mid single-digit rate in the second half, with the fourth quarter approaching the better end of that range. The guidance points to a continued decline in the final quarter, although the company expects the pace to be relatively better than across the second half as a whole. The group is targeting a position that will enable it to return to growth in 2027, as it prepares for the build phase of its Elevate28 programme. EL7 data showed WPP shares closed at 25.8 on 28 October, after 26.01 the previous day, without specifying the price currency. The data did not specify the stock’s daily trading range.