WPP H1 revenue falls 3.2%; India down 2.9%, APAC declines 3.8%

Global advertising and marketing services giant WPP said it expects business momentum to improve in the second half of 2026, banking on an AI-led transformation strategy and stronger client wins, even as weakness in India and Australia dragged its Asia-Pacific performance during the first six months of the year.

The company reported first-half revenue of £6.37 billion, down 3.2% on a like-for-like (LFL) basis, while revenue less pass-through costs—a key industry metric—fell 4.7% LFL to £4.75 billion. However, WPP said quarterly trends improved during the April-June period, aided by a recovery in its media business and easing year-ago comparisons.

For APAC, the picture was mixed. The region posted a 3.8% LFL decline in the first half, but returned to growth in the second quarter with 0.3% LFL growth, making it the only major region besides Latin America to register positive quarterly momentum.

India impacted by sporting calendar

India remained under pressure, with WPP reporting a 2.9% decline in the country during H1. The company attributed the weakness primarily to the timing of sporting events, suggesting the decline was cyclical rather than structural.

Australia also declined 4.7%, while China emerged as the bright spot in the region, returning to growth with 2.6% growth in H1 and an impressive 15.6% growth in the second quarter, helped by timing-related factors.

The contrasting regional performance underscores shifting advertising demand across Asia-Pacific, where China is rebounding while India continues to experience short-term softness.

AI transformation becomes central strategy

Chief Executive Cindy Rose said WPP had completed the first phase of its organisational overhaul under its Elevate28 strategy, simplifying the company into four integrated operating units supported by WPP Open, its AI-powered marketing platform.

"We are successfully transitioning from a complex holding company to a single, integrated company," Rose said, adding that stronger new business wins, improved client retention and cost savings were beginning to demonstrate the benefits of the transformation strategy.

The company said WPP Open is increasingly being used across creative production, media planning and campaign execution. During the quarter, WPP expanded strategic AI partnerships with Google, Meta and AWS, integrating predictive and generative AI capabilities directly into its platform. It also deployed a new Cultural Intelligence Engine, developed with Google Cloud, to help brands anticipate consumer trends.

APAC remains strategically important

Despite India's weakness, APAC continues to feature prominently in WPP's client strategy.

The company secured integrated regional assignments across Asia-Pacific while retaining major accounts including Uber in APAC, Huawei in China and L'Oréal in Australia and New Zealand, reflecting continued demand from multinational brands investing across the region.

During the quarter, WPP also announced expansion plans for WPP Enterprise Solutions, its AI-powered consulting and digital transformation business, targeting enterprise customers seeking to scale generative AI across commerce, customer experience and marketing operations.

Cost savings offset revenue pressure

Headline operating profit declined 3.4% to £398 million, although operating margin improved to 8.4% from 8.2% a year earlier as lower severance expenses and restructuring savings helped offset weaker revenues. Reported operating profit rose 18.1% to £261 million, largely due to lower impairment charges.

The company said it remains on track to deliver £100 million in cost savings during 2026 as part of its broader £500 million annualised savings target by 2028 under the Elevate28 programme. It also expects more than £200 million in proceeds from asset disposals this year.

Outlook

WPP maintained its full-year guidance, forecasting low- to mid-single-digit declines in like-for-like revenue less pass-through costs during the second half, alongside a headline operating margin of 12% to 13%. Management expects business momentum to continue improving as recent client wins, AI investments and organisational restructuring begin contributing more meaningfully to growth.

For India and the broader APAC market, the results suggest that while macro and event-related disruptions continue to weigh on advertising demand, WPP is positioning AI-enabled marketing services and integrated regional mandates as the primary drivers of future growth.