WPP, the world's largest advertising company, announced first-half results that surpassed analyst expectations, driven by aggressive cost-cutting measures and a sequential improvement in its like-for-like growth trend. For the first half of 2026, headline operating profit reached £398 million ($506.7 million), exceeding analyst estimates of £383 million. Revenue less pass-through costs, a key metric, was £4.75 billion ($6.39 billion), a 4.7% like-for-like decline, but still better than anticipated. The company's stock experienced its largest intraday surge on record following the announcement.
Despite a 4.7% like-for-like drop in revenue less pass-through costs in the first half and a 2.8% decline in the second quarter, WPP indicated an improving trajectory. The performance in the second quarter particularly benefited from a positive trend at WPP Media and easier comparisons. The reported operating profit margin for H1 was 4.1%, while the headline operating profit margin was 8.4%, marking a 0.2 percentage point like-for-like increase. This margin improvement was attributed to lower staff and severance costs, alongside successful cost savings initiatives.
CEO Cindy Rose stated that the first-half performance aligned with expectations and highlighted the progress of the "Elevate28" turnaround plan. WPP remains on track to achieve £100 million in in-year savings as part of the broader program targeting £500 million in gross annualised cost savings by 2028. The company also anticipates £200 million in proceeds from asset disposals. Looking ahead, WPP expects an improving like-for-like growth trajectory in the second half of the year, with full-year headline operating margin projected to be between 12% and 13%. They also expect adjusted operating cash flow before working capital to be in the range of £800 million to £900 million.
