Want to see WPP full AI Analyst Report?
Top Page
WPP
(NYSE:WPP)
Select Model
Select Model
Rating:49Neutral
Price Target:
$18.50
▼(-16.29% Downside)
Action:Reiterated
Date:03/13/26
The score is held back primarily by weakening financial performance (loss and margin compression) and higher leverage, reinforced by bearish technicals. Support comes from continued positive cash generation, a high dividend yield (with sustainability risk), and earnings-call actions/guidance that suggest a potential H2 improvement but with meaningful near-term headwinds and execution risk.
Positive Factors
Strong cash generation & liquidity
Sustained top-line cash conversion and a GBP 4.4bn liquidity buffer provide durable financial flexibility. This supports funding of restructuring, reinvestment and dividends without immediate capital raises, reducing short-term refinancing pressure and enabling multi-year transformation execution.
Negative Factors
Elevated and worsening leverage
Higher absolute debt and a sharply reduced equity base materially increase financial risk and reduce flexibility. Elevated leverage constrains M&A optionality and capital returns, raises refinancing sensitivity and limits buffer for cyclic revenue weakness over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & liquidity
Sustained top-line cash conversion and a GBP 4.4bn liquidity buffer provide durable financial flexibility. This supports funding of restructuring, reinvestment and dividends without immediate capital raises, reducing short-term refinancing pressure and enabling multi-year transformation execution.
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
$3.74B
Dividend Yield9.15%
Average Volume (3M)526.87K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-5.19%
EPS Growth-141.67%
CountryUS
Employees108,044
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-1.00
Shares Outstanding215,760,470
10 Day Avg. Volume456,907
30 Day Avg. Volume526,866
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 Cap1.93
Enterprise Value/Revenue0.53
Enterprise Value/Gross Profit3.36
Enterprise Value/Ebitda11.28
Forecast
1Y Price Target
$5.83Price Target Upside-73.62% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)3.4
Revenue Forecast (FY)$12.88B
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear near-term challenges including revenue decline (like-for-like -5.4% FY2025), margin compression (operating margin down 180 bps to 13%), EPS decline (-28.4%) and higher leverage (avg net debt/EBITDA 2.2x). Offsetting these are meaningful operational responses: strong new business momentum since Q4 2025 into 2026, an articulated Elevate28 strategy (targeting GBP 500m gross cost savings by 2028 and up to USD 900m white-space opportunity), major platform and partnership progress (WPP Open, InfoSum, Adobe partnership), an upgraded organizational model (4 operating units) and an investment-grade Fitch BBB rating with strong liquidity (GBP 4.4bn). Management acknowledges performance gaps and has laid out tangible cost, structural and growth actions; the plan will take time to move through phased delivery. Given the substantial near-term headwinds but credible remediation steps and some early upside from new business and platform differentiation, the overall tone is cautiously constructive but realistic about execution risk and timing.Positive Updates
Strong New Business Momentum
WPP was #1 in JPMorgan's net new business rankings in Q4 2025 (first time since 2020) with major wins across media, creative and integrated offers including the U.K. government lead media, Reckitt, Henkel, Kenvue, Haleon, TruGreen, Norwegian Cruise Line and Suncor; momentum continued into 2026 with Jaguar Land Rover (Global Media and Integrated Services). Management stated that the impact of 2026 new business already exceeds the impact of all 2025 wins as of February 2026.
Negative Updates
Revenue Decline and Deteriorating Trends
Like-for-like revenue less pass-through costs fell 5.4% for FY2025 (Q4 like-for-like decline of 6.9%, worsening from Q3 decline of 5.9%). Reported revenue less pass-through costs was GBP 10.2 billion, down 10.4% year-on-year on a reported basis.
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 (first time since 2020) with major wins across media, creative and integrated offers including the U.K. government lead media, Reckitt, Henkel, Kenvue, Haleon, TruGreen, Norwegian Cruise Line and Suncor; momentum continued into 2026 with Jaguar Land Rover (Global Media and Integrated Services). Management stated that the impact of 2026 new business already exceeds the impact of all 2025 wins as of February 2026.
Read all positive updates
Company Guidance
Guidance for 2026: WPP expects like‑for‑like net revenue less pass‑through costs to be down mid‑ to high‑single digits in H1 with a progressively improving trajectory in H2 (Q1 the weakest), with gross client losses dragging ~500–600bp (up from 300–400bp in 2025) even as gross client wins already exceed full‑year 2025; headline operating margin is guided to 12–13%. Cash guidance is adjusted operating cash flow before working capital of GBP 800–900m (including total anticipated cash restructuring charges of ~GBP 250m, ~GBP 190m of which relate to Elevate28) — excluding those charges AOCF would be c. GBP 1.0–1.1bn. Management targets at least GBP 100m of in‑year P&L savings in 2026, GBP 250m of annualized savings in 2026, and GBP 500m of gross annual cost savings by 2028 (restructuring cash costs c. GBP 400m across 2026–27); they expect average net debt to remain broadly stable but average leverage to rise in 2026 from 2025’s 2.2x average adjusted net debt/EBITDA (average adjusted net debt £3.4bn; year‑end net debt £2.2bn), with £4.4bn liquidity and a Fitch BBB (stable) rating.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 | 628.00M | 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 | 6.83B | 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 | -347.00M | 278.00M | -380.40M | -408.90M | -638.40M |
| Financing Cash Flow | -319.00M | -989.00M | -904.70M | -1.91B | -2.06B |
WPP Technical Analysis
Positive
22.10
Price Trends
17.69
Positive
17.12
Positive
18.98
Negative
Market Momentum
-0.09
Negative
58.20
Neutral
74.63
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 22.1 is above the 20-day moving average (MA) of 17.44, above the 50-day MA of 17.69, and above the 200-day MA of 18.98, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 58.20 is Neutral, neither overbought nor oversold. The STOCH value of 74.63 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.04B | 18.41 | 18.57% | ― | 7.10% | 404.29% | |
66 Neutral | $23.04B | 74.27 | 0.82% | 3.68% | 25.88% | -94.29% | |
63 Neutral | $1.95B | 45.71 | 2.55% | ― | -1.81% | -35.73% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $1.92B | 104.36 | 2.52% | ― | 4.48% | 868.83% | |
49 Neutral | $3.74B | ― | -7.54% | 9.15% | -5.19% | -141.67% |
* Communication Services Sector Average
WPP
WPP
18.49
-7.95
-30.07%
ZD
Ziff Davis
52.18
19.61
60.21%
STGW
Stagwell
7.81
3.13
66.88%
OMC
Omnicom Group
81.93
12.09
17.30%
MGNI
Magnite
20.34
-2.77
-11.97%
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.