WPP (GB:WPP)
LSE:WPP
Want to see GB:WPP full AI Analyst Report?
Top Page
WPP
(LSE:WPP)
Select Model
Select Model
Rating:49Neutral
Price Target:
266.00 p
▼(-1.94% Downside)
Action:ReiteratedDate: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
Cash generation
WPP continues to produce substantial operating and free cash flow despite a reported net loss, giving durable funding for restructuring, dividend maintenance and targeted reinvestment. Positive cash conversion supports liquidity and strategic flexibility over the next 2–6 months.
Negative Factors
Declining organic revenue
Sustained organic revenue declines and elevated client assignment losses reduce scale and pricing leverage, pressuring margins and ROI on platform investments. If client churn and slower pitch activity persist, revenue recovery could be protracted and limit margin normalization.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
WPP continues to produce substantial operating and free cash flow despite a reported net loss, giving durable funding for restructuring, dividend maintenance and targeted reinvestment. Positive cash conversion supports liquidity and strategic flexibility over the next 2–6 months.
Read all positive factors
WPP (WPP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.80B
Dividend Yield9.68%
Average Volume (3M)4.30M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-8.08%
EPS Growth-139.61%
CountryUK
Employees108,044
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.43
Shares Outstanding1,078,802,400
10 Day Avg. Volume4,215,497
30 Day Avg. Volume4,298,428
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.43
Price to Sales (P/S)0.27
P/FCF Ratio5.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£272.50Price Target Upside0.46% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.5
Revenue Forecast (FY)£9.55B
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 Cent...
How the Company Makes Money
WPP primarily makes money by delivering marketing and communications services to clients under a mix of fee-based and project-based arrangements. A major revenue stream comes from agency services such as creative advertising, brand strategy, produ...
WPP Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: the company reported meaningful near-term financial weakness (organic revenue declines, margin compression, EPS decline, impairments and increased leverage) and cautioned that client assignment losses and volatility will weigh into H1 2026. Offsetting these negatives, management outlined a clear multi-year strategic plan (Elevate28) with significant structural changes, a strong emphasis on the WPP Open platform and data capabilities, notable new business momentum (including early 2026 wins surpassing 2025), a GBP 500m cost-savings target, and an investment-grade Fitch rating and strong liquidity. Taken together, the call combined candid acknowledgement of short-term headwinds with concrete actions and encouraging early signs of commercial momentum.Positive Updates
Strong New Business Momentum
WPP was #1 in JPMorgan's net new business rankings in Q4 2025 for the first time since 2020 and sustained momentum into 2026 with major wins including Jaguar Land Rover (Global Media & Integrated Services), JLR (pending contract), UK government lead media agency, Reckitt, Henkel, Kenvue, Haleon, TruGreen, Norwegian Cruise Line and Suncor. Management reported the impact of 2026 new business already exceeds the impact of all 2025 wins (by February 2026).
Negative Updates
Declining Organic Revenue
Like-for-like net revenue less pass-through costs fell 5.4% for full-year 2025; Q4 like-for-like decline was 6.9% (worse than Q3 decline of 5.9%). Management guided mid- to high-single-digit like-for-like revenue declines in H1 2026 with Q1 as the weakest quarter and gross client losses expected to drag 500–600 basis points in 2026 (up from 300–400 bps in 2025).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong New Business Momentum
WPP was #1 in JPMorgan's net new business rankings in Q4 2025 for the first time since 2020 and sustained momentum into 2026 with major wins including Jaguar Land Rover (Global Media & Integrated Services), JLR (pending contract), UK government lead media agency, Reckitt, Henkel, Kenvue, Haleon, TruGreen, Norwegian Cruise Line and Suncor. Management reported the impact of 2026 new business already exceeds the impact of all 2025 wins (by February 2026).
Read all positive updates
Company Guidance
WPP guided that 2026 will be a year of stabilization with like‑for‑like net revenue (less pass‑through) expected to be down mid‑ to high‑single digits in H1 with an improving trajectory in H2 (Q1 the weakest); gross client losses are expected to be a 500–600bps headwind in 2026 (up from 300–400bps in 2025) even as gross client wins to date already exceed full‑year 2025. On margin they expect headline operating profit margin of 12–13% in 2026; adjusted operating cash flow before working capital is guided to GBP 800–900m (this includes total anticipated cash restructuring charges of ~GBP 250m, c. GBP 190m of which relate to Elevate28) — excluding those charges the cash‑flow range would be GBP 1.0–1.1bn. Management reiterated plans to deliver GBP 500m of gross annual cost savings by 2028 (at least GBP 100m in‑year savings in 2026 and GBP 250m annualized), with total restructuring cash costs of roughly GBP 400m across 2026–27, and said all 2026 in‑year savings will be reinvested in growth priorities; they expect average net debt to remain broadly stable but average leverage metrics to rise in 2026. For context they closed 2025 with like‑for‑like revenue down 5.4%, headline margin 13%, adjusted operating cash flow before working capital of GBP 1.2bn, spot net debt GBP 2.2bn (average adjusted net debt GBP 3.4bn; net debt/EBITDA 2.2x), liquidity GBP 4.4bn, and a proposed 2025 dividend of 15p; Fitch has assigned BBB (stable).WPP Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| 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
Neutral
271.25
Price Trends
253.85
Positive
285.43
Negative
326.68
Negative
Market Momentum
3.62
Negative
65.08
Neutral
91.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPP, the sentiment is Neutral. The current price of 271.25 is above the 20-day moving average (MA) of 242.94, above the 50-day MA of 253.85, and below the 200-day MA of 326.68, indicating a neutral trend. The MACD of 3.62 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:WPP.
WPP Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £1.06B | 12.53 | 78.01% | 9.72% | -4.53% | -5.79% | |
77 Outperform | £221.14M | 10.47 | 6.46% | 3.68% | 2.11% | 818.58% | |
68 Neutral | £248.03M | -49.08 | 9.17% | 4.98% | -5.98% | -74.21% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | £269.51M | -5.55 | -4.92% | 6.33% | -11.01% | 92.56% | |
55 Neutral | £150.64M | -71.31 | -6.04% | 1.09% | -12.14% | -117.39% | |
49 Neutral | £2.80B | -16.88 | -7.54% | 9.68% | -8.08% | -139.61% |
* Communication Services Sector Average
GB:WPP
WPP
259.75
-266.93
-50.68%
GB:FOUR
4Imprint
3,762.00
738.76
24.44%
GB:SAA
M&C Saatchi plc
125.50
-31.05
-19.83%
GB:NFG
Next Fifteen Communications
245.50
5.40
2.25%
GB:YOU
Yougov plc
188.00
-83.26
-30.69%
GB:SFOR
S4 Capital Plc
40.65
14.72
56.75%
WPP Corporate Events
Business Operations and StrategyFinancial Disclosures
WPP Sets Date for First-Quarter 2026 Trading Update and Investor Call
Neutral
Apr 9, 2026
WPP said it will publish its trading update for the first quarter of 2026, covering the three months to 31 March, on 28 April 2026. The release will be accompanied by a conference call and live webcast for institutional investors and sell-side ana...
Regulatory Filings and Compliance
WPP Updates Market on Total Voting Rights and Share Capital
Neutral
Apr 1, 2026
WPP has reported that as of 31 March 2026 its issued share capital comprised 1,091,394,251 ordinary shares of 10 pence each, of which 12,591,893 shares are held in treasury. As a result, the total number of voting rights in WPP stands at 1,078,802...
Executive/Board Changes
WPP Grants Multi‑Year Share Awards to CEO and CFO Under Performance Plan
Neutral
Mar 24, 2026
WPP has granted new 2026 Executive Performance Share Plan awards and deferred Executive Share Awards to chief executive Cindy Rose and chief financial officer Joanne Wilson, aligning their pay with long-term shareholder value. The awards, made und...
Financial DisclosuresRegulatory Filings and Compliance
WPP Files 2025 Form 20-F and Offers Investors Free Hard-Copy Accounts
Neutral
Mar 19, 2026
WPP has filed its 2025 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission, providing audited financial statements for the year ended 31 December 2025 and making the document available online via both its own website and th...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
WPP Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 19, 2026
WPP has published its Annual Report for the year ended 31 December 2025 and the Notice of its 2026 Annual General Meeting on the company’s website, with hard copies of the report to be sent in early April to shareholders who opted for paper ...
Regulatory Filings and Compliance
WPP Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
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 ...
Regulatory Filings and Compliance
WPP Updates Market on Total Voting Rights and Share Capital
Neutral
Feb 2, 2026
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 fi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.