WPP jumps over 24pc as profit growth defies revenue slide.


Shares in advertising giant WPP were sharply higher in early trade after revealing it had delivered higher first‑half operating profits despite a drop in revenues, with margins improving as cost savings and lower severance helped offset weaker client spend.

  • WPP
  • 06 August 2026 08:50:22
WPP

Source: Sharecast

WPP said reported operating profits rose 18.1% to £261m, while headline operating profit came in at £398m, giving a margin of 8.4%, up 0.2pts on a like‑for‑like basis.

H1 revenues, on the other hand, fell 4.4% to £6.37bn, with like‑for‑like revenues were down 3.2%. Revenue less pass‑through costs declined 4.7% to £4.75bn, though Q2 showed a sequential improvement, down 2.8% LFL.

Global Integrated Agencies posted a 4.7% decline in revenue less pass‑through costs, with WPP Media down 5.4%, WPP Creative down 4.9%, and WPP Production up 1.6%.

Regionally, North America fell 6%, Europe. Middle East and Africa 4.3%, Asia-Pacific 3.8%, and Latin America 1.2%, though all regions saw improved momentum in Q2.

WPP's top 25 clients saw a 6.3% like-for-like decline in H1, improving to 3.2% in Q2. CPG, tech and retail remained weak, while automotive, healthcare and government returned to growth.

Adjusted net debt fell to £2.94bn from £3.26bn, helped by IFRS 9 amendments, while average adjusted net debt eased to £3.3bn. The firm's interim dividend was held at 7.5p, consistent with maintaining a 15p annual payout.

WPP expects an improving like‑for‑like trajectory in the second half, with LFL revenue less pass‑through costs forecast to decline low to mid‑single digits. It also maintained its full‑year headline operating margin guidance of 12% to 13%, reflecting investment phasing and incentive rebuilding, and said it continues to anticipate £800m to £900m of adjusted operating cash flow before working capital.

As of 0850 BST, WPP shares had surged 24.55% to 382.50p.

Reporting by Iain Gilbert at Sharecast.com

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