WPP plc reported its Q4 2025 financial results on February 26 2026, showing a 5.4% like‑for‑like decline in revenue less pass‑through costs to £10,176 million, the lowest level since the pandemic‑era downturn. The headline operating profit margin contracted to 13.0%, a 1.8‑percentage‑point drop from 15.0% in 2024, reflecting the combined impact of lower revenue, higher severance costs, and continued investment in technology and data.
Diluted earnings per share fell 28.4% to 63.2 p, the lowest in the company’s history, as the company’s restructuring plan – “Elevate28” – accelerated. The plan, announced earlier in the year, aims to simplify the business, integrate AI capabilities, and cut costs, but it has added short‑term expenses that weighed on profitability.
Management reiterated its revised outlook, tightening full‑year revenue guidance to a like‑for‑like decline of 5.5%–6.0% from the previous 3%–5% range. The company also maintained its operating margin target of 13%–14% for the year, signalling confidence that the cost‑discipline measures will eventually offset the current drag on margins.
Investors reacted negatively, citing the weak results, the dividend cut, and the scale of the restructuring plan. Analysts noted that the company’s headwinds – including client assignment losses and reduced spending – are likely to persist in the near term, while the long‑term upside hinges on the successful execution of the “Elevate28” strategy.
The earnings miss underscores a challenging environment for the advertising and marketing industry, where AI is reshaping demand and pricing dynamics. WPP’s focus on AI‑driven services and a single, integrated operating model is a strategic pivot aimed at restoring growth, but the company’s current performance signals that the transition will be costly and time‑consuming.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.