WPP Plc announced its earnings on February 26, 2026, reporting revenue of $6.96 billion, which surpassed estimates, and an EPS of $2.7196, which met expectations. This financial performance is set against a backdrop of a significant restructuring plan initiated by the struggling British advertising agency to return to growth. The company aims for $500 million in annual cost savings by 2028 as part of its "Elevate28" strategic transformation.
For the full year 2025, WPP's like-for-like revenue declined by 5.4%, attributed to client losses and spending cuts, resulting in a 13% operating margin. The company recorded $82 million in restructuring costs and an adjusted operating cash flow of $1.2 billion. A substantial impairment charge of $641 million on goodwill significantly impacted reported operating profit, which fell 71.2% to $382 million from $1.33 billion in 2024.
Looking ahead to 2026, WPP forecasts a mid-to-high single-digit decline in like-for-like revenue less pass-through costs in the first half, with stabilization expected in the second half. The targeted operating margin for 2026 is between 12% and 13%. The strategic plan includes $400 million in total cash restructuring costs over two years, with a significant portion of the $500 million in gross cost savings to be reinvested into growth areas such as media, production, and enterprise solutions. New business wins in late 2025 and early 2026, including Jaguar Land Rover and Norwegian Cruise Line, have exceeded the total wins for 2025.
