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WPP
(NYSE:WPP)
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Rating:53Neutral
Price Target:
$27.00
▲(44.00% Upside)
Action:Reiterated
Date:08/17/26
WPP scores in the low-to-mid range primarily due to weaker financial performance (2025 loss, significant margin compression, and higher leverage), partially offset by still-positive free cash flow. Technicals are supportive with strong price strength above key moving averages, but overbought signals temper the outlook. Valuation is mixed due to a negative P/E, while the dividend yield offers some support. Earnings-call guidance suggests stabilization but continued near-term revenue decline and margin headwinds, limiting upside to the score.
Positive Factors
Strategic simplification and capabilities
A simpler operating model can reduce duplication, improve cross-agency coordination and support integrated client delivery. New Enterprise Solutions and Commerce capabilities broaden WPP’s role toward higher-value, technology-enabled marketing services.
Negative Factors
Persistent organic revenue contraction
Continued organic contraction indicates that client demand and account performance remain under pressure across the business. Management only targets a return to growth in 2027, leaving several months of subdued revenue to weigh on scale and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic simplification and capabilities
A simpler operating model can reduce duplication, improve cross-agency coordination and support integrated client delivery. New Enterprise Solutions and Commerce capabilities broaden WPP’s role toward higher-value, technology-enabled marketing services.
Read all positive factors
WPP Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which might need strategic adjustments.
Shows how revenue is distributed across different business segments, highlighting which areas are driving growth and which might need strategic adjustments.
Data provided by:
The Fly
The FlyWPP (WPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.89B
Dividend Yield3.76%
Average Volume (3M)503.12K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-2.97%
EPS Growth-165.26%
CountryUS
Employees98,655
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-1.11
Shares Outstanding215,760,470
10 Day Avg. Volume328,885
30 Day Avg. Volume503,120
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.41
Price to Sales (P/S)0.26
P/FCF Ratio5.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$5.94Price Target Upside-68.33% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.54
Revenue Forecast (FY)$13.02B
WPP Business Overview & Revenue Model
Company Description
WPP plc operates as a global creative transformation enterprise, delivering a comprehensive suite of services that include communications strategies, customer experience enhancement, commerce solutions, and advanced technology applications. Its ex...
How the Company Makes Money
WPP primarily makes money by delivering marketing and communications services to clients under a mix of long-term retainers, project-based engagements, and performance- or incentive-linked arrangements, depending on the service and client contract...
WPP Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: the business is showing clear signs of stabilization and strategic progress (organizational simplification, strong new‑business momentum, partnerships and asset disposals) and has delivered balance‑sheet and margin resilience in H1. However, meaningful revenue decline, a persistent net‑new‑business drag (c.600bps gross losses), a significant EPS decline (-24.5%) and elevated leverage and second‑half margin headwinds temper the near‑term outlook. Management expects 2026 to be the low point with a return to growth targeted in 2027.Positive Updates
Improving organic revenue trajectory
Like-for-like net sales declined 4.7% for H1 2026 but showed sequential improvement: Q1 -6.7% vs Q2 -2.8%, indicating stabilization and an improving top-line trend quarter-over-quarter.
Negative Updates
Ongoing revenue decline and organic contraction
H1 like‑for‑like revenue less pass‑through costs declined 4.7% (reported revenue less pass-through costs down 5.6% period‑on‑period), and management expects H2 like‑for‑like to decline low‑to‑mid single digits, with full-year 2026 representing the low point ahead of a planned return to growth in 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
Improving organic revenue trajectory
Like-for-like net sales declined 4.7% for H1 2026 but showed sequential improvement: Q1 -6.7% vs Q2 -2.8%, indicating stabilization and an improving top-line trend quarter-over-quarter.
Read all positive updates
Company Guidance
WPP reaffirmed a cautious near‑term outlook: H1 like‑for‑like net sales were -4.7% (Q1 -6.7%, Q2 -2.8%) and management expects H2 like‑for‑like revenue (less pass‑through) to decline low‑ to mid‑single digits with a return to growth targeted in 2027; full‑year headline operating margin is guided at 12–13% (with H2 margin potentially down as much as 200bps y/y). Cash guidance: adjusted operating cash flow pre‑working capital £800–900m (or c.£1.0–1.1bn excluding restructuring), adjusted free cash flow ~£730–738m (last 12 months), adjusted net debt £2.9bn (average £3.3bn) and total liquidity £4.1bn (including an undrawn $2.5bn RCF). Other key metrics: H1 headline operating profit £398m (margin 8.4%), headline EPS 15.1p, interim dividend 7.5p (full year c.15p), effective tax rate ~33–34%, net finance costs £135m, management expects in‑year savings c.£100m (part of a £500m three‑year target, targeting a £250m run‑rate by year‑end), at least £200m of disposal proceeds in 2026, and gross client losses at the top end of the 500–600bps range with gross wins comfortably ahead of 2025.WPP Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.31B | 13.55B | 14.74B | 14.84B | 14.43B | 12.80B |
| Gross Profit | 2.12B | 2.15B | 2.45B | 2.52B | 2.54B | 2.20B |
| EBITDA | 729.28M | 628.00M | 1.90B | 1.91B | 2.03B | 1.78B |
| Net Income | -239.86M | -215.00M | 542.00M | 110.40M | 682.70M | 637.70M |
Balance Sheet | ||||||
| Total Assets | 23.43B | 24.07B | 25.51B | 26.62B | 28.82B | 27.87B |
| Cash, Cash Equivalents and Short-Term Investments | 2.35B | 2.69B | 2.64B | 2.22B | 2.49B | 3.88B |
| Total Debt | 7.14B | 6.83B | 6.35B | 6.88B | 7.18B | 6.83B |
| Total Liabilities | 20.66B | 21.30B | 21.77B | 22.79B | 24.66B | 23.80B |
| Stockholders Equity | 2.59B | 2.54B | 3.48B | 3.38B | 3.68B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.01B | 633.00M | 1.17B | 1.02B | 477.60M | 1.74B |
| Operating Cash Flow | 1.10B | 724.00M | 1.41B | 1.24B | 700.90M | 2.03B |
| Investing Cash Flow | -284.97M | -347.00M | 278.00M | -380.40M | -408.90M | -638.40M |
| Financing Cash Flow | -18.67M | -319.00M | -989.00M | -904.70M | -1.91B | -2.06B |
WPP Technical Analysis
Positive
18.75
Price Trends
20.72
Positive
19.13
Positive
19.03
Positive
Market Momentum
1.87
Positive
66.70
Neutral
51.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WPP, the sentiment is Positive. The current price of 18.75 is below the 20-day moving average (MA) of 24.86, below the 50-day MA of 20.72, and below the 200-day MA of 19.03, indicating a bullish trend. The MACD of 1.87 indicates Positive momentum. The RSI at 66.70 is Neutral, neither overbought nor oversold. The STOCH value of 51.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WPP.
WPP Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.38B | 20.14 | 18.62% | ― | 8.32% | 280.46% | |
66 Neutral | $24.40B | 47.56 | 4.34% | 3.89% | 40.60% | -83.10% | |
65 Neutral | $1.91B | 3.14 | 34.27% | ― | -8.46% | -157.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $2.17B | 137.04 | 2.16% | ― | 6.17% | 351.09% | |
53 Neutral | $5.89B | -17.98 | -9.33% | 5.34% | -2.97% | -165.26% |
* Communication Services Sector Average
WPP
WPP
25.86
0.55
2.19%
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55.61
17.82
47.16%
STGW
Stagwell
8.64
3.06
54.84%
OMC
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87.89
12.46
16.52%
MGNI
Magnite
23.38
-2.19
-8.56%
WPP Corporate Events
WPP Discloses Mondrian Stake Cut Below 5% Threshold
May 26, 2026
On 22 May 2026, asset manager Mondrian Investment Partners Limited reduced its stake in WPP, crossing a regulatory threshold that triggered a major holdings notification under UK disclosure rules. Mondrian’s position fell from 5.63% to about...
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.