WPP (WPP) AI Stock Analysis

• Market Cap: £2.75B
• Dividend Yield: 9.68%
• Average Volume (3M): 4.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -4.54%
• EPS Growth: 86.79%
• Country: UK
• Employees: 108,044
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.39
• Shares Outstanding: 1,078,802,400
• 10 Day Avg. Volume: 4,215,497
• 30 Day Avg. Volume: 4,298,428
• PEG Ratio: 0.12
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 5.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £302.86
• Price Target Upside: 18.72% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.5
• Revenue Forecast (FY): £9.57B

• Rating: 49 Neutral
• Price Target: 271.00p ▲(6.23% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

Overall score reflects weakened financial performance in 2025 (losses and higher leverage) and a clearly bearish technical trend (price below all key moving averages). These are partially offset by resilient (though declining) cash generation, supportive income characteristics via a high dividend yield, and an earnings-call outlook that combines near-term revenue/margin headwinds with concrete cost-savings actions and improving new-business momentum.

Positive Factors

Resilient cash generation

Despite a 2025 net loss, WPP produced meaningful operating and free cash flow, supporting liquidity, dividend payments and reinvestment. Sustained cash conversion provides durable financial flexibility to fund restructuring, platform investments and absorb cyclical client volatility over the next 2–6 months.

WPP Open data and tech investment

Material, ongoing investment in WPP Open and partner integrations builds a differentiated, scalable marketing platform. Platform-led capabilities create high switching costs, recurring services and measurement advantages that support structural client retention and cross-sell potential across digital and data-driven services.

Enterprise Solutions scale and runway

Elevating Enterprise Solutions formalizes exposure to a large, higher-growth consulting/tech TAM. Scale, recurring delivery and integration with WPP Open diversify revenue away from cyclical media spend and provide a multi-year structural growth avenue that can lift group margin mix over time.

Negative Factors

Declining organic revenue and client losses

Sustained like-for-like declines and elevated client assignment losses signal structural revenue pressure in key markets and categories. Persistent client churn reduces utilization and pricing leverage, making margin recovery and predictable revenue growth harder to achieve over the medium term.

Rising leverage and thinner equity cushion

Higher gross debt and a shrinking equity base increase financial risk and constrain strategic optionality. With margins compressed and restructuring cash needs ahead, elevated leverage raises refinancing and rating sensitivity and limits the company's ability to pursue opportunistic investments without restoring balance-sheet headroom.

Large impairments and cash restructuring costs

Material impairments indicate long‑term underperformance of certain creative assets and reduce net book value and return on capital. Significant cash restructuring outflows weigh on near-term free cash flow and divert resources to cost base repair rather than organic growth investments.

WPP Business Overview & Revenue Model

Company Description

WPP plc, a creative transformation company, provides communications, experience, commerce, and technology services in North America, the United Kingdom, Western Continental Europe, the Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company operates through three segments: Global Integrated Agencies, Public Relations, and Specialist Agencies. It offers plans and creates marketing and branding campaigns; designs and produces advertisements across various media; and provides media buying services, such as strategy and business development, media investment, data and technology, and content. The company also offers public relations advisory services to clients who are seeking to communicate with a range of stakeholders from consumers to governments and the business and financial communities; and specialist agency services. WPP plc was founded in 1985 and is based in London, the United Kingdom.

How the Company Makes Money

WPP generates revenue primarily through its service fees for advertising and marketing services provided to clients across various industries. The company's revenue model includes project-based fees, retainers, and performance-based incentives. Key revenue streams come from digital marketing services, traditional advertising, media buying, and public relations. WPP has established significant partnerships with large corporations and brands, which contribute to consistent revenue through long-term contracts. Additionally, the company's investments in technology and data analytics enhance its service offerings, driving growth in digital and programmatic advertising, which are increasingly vital revenue sources.

WPP Financial Statement Overview

Summary

Financials are mixed. 2025 showed deterioration with revenue down (-4.4%) and a return to a net loss (net margin ~-1.6%) after profits in 2021–2024, and leverage increased as debt rose while equity fell. Offsetting this, operating profitability remained positive (EBIT margin ~2.8%) and cash generation stayed solid with positive operating cash flow (~724M) and free cash flow (~633M), though both weakened versus 2024.

Income Statement

Revenue has been essentially flat to down over the last few years, with 2025 declining sharply (2025 revenue growth: -4.4%). Profitability has also weakened materially: the company moved from positive earnings in 2021–2024 (2024 net margin ~3.7%) to a net loss in 2025 (net margin ~-1.6%). Operating profitability remains positive in 2025 (EBIT margin ~2.8%) but is far below 2022–2024 levels, pointing to margin pressure and/or elevated costs. A strong 2022–2024 recovery from the 2020 loss is a positive, but the 2025 reversal meaningfully lowers confidence in the current earnings trajectory.

Balance Sheet

Leverage is meaningful for the business model. Debt rose in 2025 to ~8.5B while equity declined to ~2.5B, implying a higher leverage profile versus 2024 (which already carried elevated leverage with debt at ~6.3B vs equity ~3.5B). Total assets remain large (~24.1B in 2025), but the shrinking equity cushion increases financial risk. Returns on equity were solid in 2021–2024 (e.g., ~15.6% in 2024) but will be pressured by the 2025 loss and lower equity base.

Cash Flow

Cash generation remains a key strength. Operating cash flow stayed positive in 2025 (~724M) and free cash flow was still substantial (~633M) despite the net loss, suggesting the business can continue to produce cash through the cycle. That said, cash flow weakened versus 2024 (operating cash flow down from ~1.41B; free cash flow down from ~1.17B), and 2025 free cash flow declined ~17%, indicating softer conversion and/or higher cash costs. Overall, cash flow quality looks better than reported earnings in 2025, but the downtrend is a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.55B	14.74B	14.84B	14.43B	12.80B
Gross Profit	2.15B	2.45B	2.52B	2.54B	2.20B
EBITDA	1.67B	1.90B	1.91B	2.03B	1.78B
Net Income	-215.00M	542.00M	110.40M	682.70M	637.70M
Balance Sheet
Total Assets	24.07B	25.51B	26.62B	28.82B	27.87B
Cash, Cash Equivalents and Short-Term Investments	2.69B	2.64B	2.22B	2.49B	3.88B
Total Debt	8.51B	6.35B	6.88B	7.18B	6.83B
Total Liabilities	21.30B	21.77B	22.79B	24.66B	23.80B
Stockholders Equity	2.54B	3.48B	3.38B	3.68B	3.62B
Cash Flow
Free Cash Flow	633.00M	1.17B	1.02B	477.60M	1.74B
Operating Cash Flow	724.00M	1.41B	1.24B	700.90M	2.03B
Investing Cash Flow	-355.00M	278.00M	-380.40M	-408.90M	-638.40M
Financing Cash Flow	-311.00M	-989.00M	-904.70M	-1.91B	-2.06B

WPP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 255.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPP, the sentiment is Negative. The current price of 255.1 is below the 20-day moving average (MA) of 267.78, below the 50-day MA of 299.17, and below the 200-day MA of 369.79, indicating a bearish trend. The MACD of -10.37 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 18.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WPP.

WPP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOUR	81 Outperform	£1.06B	6.49	86.56%	9.72%	-2.60%	3.10%
YOU	75 Outperform	£225.61M	27.22	7.16%	3.68%	15.99%	―
NFG	68 Neutral	£286.92M	-49.08	9.53%	4.98%	-5.98%	-74.21%
SAA	65 Neutral	£143.03M	18.54	18.23%	1.09%	-21.19%	-29.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SFOR	54 Neutral	£135.92M	-1.92	-45.75%	6.33%	-14.27%	-15466.67%
WPP	49 Neutral	£2.75B	-16.88	11.44%	9.68%	-4.54%	86.79%

WPP Corporate Events

WPP Updates Market on Total Voting Rights and Share Capital

WPP has reported that as of 27 February 2026 its issued share capital comprises 1,091,394,251 ordinary shares, of which 12,591,893 are held in treasury. This leaves a total of 1,078,802,358 voting rights in the company, a key reference figure for investors assessing whether they must disclose holdings or changes in stakes under U.K. transparency rules.

The clarification of WPP’s voting rights structure provides shareholders with an updated denominator for regulatory reporting and governance oversight. By confirming the volume of treasury shares and the effective free float, the announcement supports more accurate monitoring of significant shareholdings and enhances transparency in the group’s capital structure for market participants.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £276.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Updates Market on Total Voting Rights and Share Capital

WPP has announced that, as of 30 January 2026, its issued share capital comprises 1,091,394,251 ordinary shares of 10 pence each, of which 12,591,893 are held in treasury. This leaves a total of 1,078,802,358 voting rights in the company, a key figure that shareholders must use as the denominator when calculating whether they are required to disclose new or changed holdings under the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, ensuring continued regulatory compliance and transparency in WPP’s shareholder base.

The most recent analyst rating on (GB:WPP) stock is a Sell with a £2.50 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP to Unveil 2025 Results and Strategic Overhaul in February

WPP has scheduled the release of its preliminary results for the year ended 31 December 2025 for 26 February 2026, alongside a strategy update that reflects an ongoing strategic review. The update will focus on simplifying and integrating its client offering while leveraging its AI capabilities, improving execution and fostering a high-performance culture, expanding its addressable market through enterprise and technology solutions, and strengthening its financial foundations via operational efficiency and disciplined capital allocation. WPP will present these results and strategic priorities at an in-person meeting for institutional investors and analysts in London, which will also be webcast, underscoring the company’s effort to reassure markets about its growth trajectory, operational focus, and capital discipline.

The most recent analyst rating on (GB:WPP) stock is a Buy with a £361.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Confirms Year-End Share Capital and Voting Rights

WPP has reported that as of 31 December 2025 its issued share capital comprised 1,091,394,251 ordinary shares of 10 pence each, of which 12,591,893 are held in treasury, leaving 1,078,802,358 voting shares in circulation. The disclosure clarifies the current size of WPP’s voting share base, giving investors the reference figure needed to assess and report changes in their holdings under UK financial disclosure rules, and reinforces transparency around the group’s capital structure at year-end.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £350.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.

WPP Non-Executive Director Simon Dingemans Joins Avantor Board

WPP has announced that non-executive director Simon Dingemans has been appointed to the board of directors of Avantor, Inc., effective 2 January 2026. The additional board role underscores the cross-industry relevance of Dingemans’ governance experience, though WPP’s statement frames the move as a standard disclosure under UK listing rules rather than signalling any change in its own corporate strategy or operations.

The most recent analyst rating on (GB:WPP) stock is a Hold with a £350.00 price target. To see the full list of analyst forecasts on WPP stock, see the GB:WPP Stock Forecast page.