WPP flags weak start to 2026, cites Middle East uncertainty

While it will take time to outpace historical losses, our Q1 results are in line with expectations and ahead of Q4 2025, CEO Cindy Rose says in Q1 trading update on Tuesday

by Kanchan Srivastava
Published: Apr 28, 2026 12:44 PM | 3 min read

WPP reported a 6.6% year-on-year decline in Q1 2026 revenue, totaling £3,030 million, with a 4.0% decrease on a like-for-like basis, indicating ongoing pressure on performance.
The company anticipates mid- to high-single digit declines in like-for-like revenue less pass-through costs for H1 2026, with expectations for improvement in the second half of the year.
CEO Cindy Rose emphasized the importance of the Elevate28 strategy, which aims for £500 million in gross cost savings by 2028, while also noting that current savings are being reinvested into growth initiatives.
Despite macroeconomic uncertainties and client losses impacting growth, WPP remains committed to its strategy and will maintain its annual dividend at 15.0p per share.

WPP’s Q1 2026 trading update on Tuesday points to a weak start to the year, with revenue of £3,030 million, down 6.6% year-on-year on a reported basis and 4.0% on a like-for-like (LFL) basis. Revenue less pass-through costs stood at £2,260 million, declining 6.7% LFL, underscoring continued pressure on underlying performance.

The company said performance in the quarter was in line with expectations and the guidance outlined in February, with Q1 expected to be the weakest period of the year.

WPP reiterated that LFL revenue less pass-through costs is likely to decline in the mid- to high-single digits in H1 2026, with an improving trajectory in the second half. Headline operating margins are expected to remain in the 12%–13% range, even as near-term visibility remains impacted by macro uncertainty, including ongoing developments in the Middle East.

At the same time, gross client losses are expected to create a 500–600 basis point drag on growth in 2026, up from 300–400 basis points last year.

Framing the transition, CEO Cindy Rose 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.”

She added, “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,” underscoring the company’s expectation of gradual recovery rather than an immediate rebound.

Cash flow reflects the same balancing act. Adjusted operating cash flow before working capital is expected at £800 million to £900 million, including restructuring costs. Excluding these, underlying cash generation stands closer to £1.0 billion to £1.1 billion—highlighting the scale of ongoing transformation spending.

At the centre of this transition is Elevate28, WPP’s efficiency programme targeting £500 million in gross cost savings by 2028. In 2026, the company expects at least £100 million in in-year savings and £250 million in annualised savings. However, these gains are being fully reinvested into growth priorities, alongside restructuring costs of around £190 million.

Execution will be critical. WPP expects the drag from net new business to be more pronounced in the first half before easing through the year, supported by a stronger pipeline. External pressures—including a 1.6% FX headwind and macroeconomic uncertainty—continue to weigh on visibility.

Despite near-term softness, WPP has reiterated confidence in its strategy, including maintaining its annual dividend at 15.0p per share. The direction of travel is clear: a shift from a scale-led holding company to a more integrated, technology-driven platform.

The key question now is whether these investments can translate into sustained growth quickly enough—turning what is currently a reset phase into a durable recovery.