WPP plc (WPP): Financial results for Q3 2026
WPP plc (WPP) furnished an SEC Form 6-K — earnings release. Forward-Looking Statements The Company may include forward-looking statements (including as defined in the U.S. Private Securities Litigation Reform Act of 1995) in oral or written public statements issued by or on behalf of the Company. These forward-looking statements may inclu
How this was made
The 30-second read
Why it matters
The reaffirmed guidance suggests the company is on track but not accelerating, keeping the stock near current levels.
Market read
WPP's earnings update provides fresh data for investors but does not alter the broader market outlook.
What to watch
Potential upside from AI‑enabled media services not fully reflected in guidance.
Disciplined execution of the Elevate28 plan delivers continued progress and momentum in Q3; FY guidance reiterated
Q3 revenue increased 0.5% on both a reported and LFL basis, but revenue less pass-through costs declined 2.1% LFL. WPP Media and WPP Production returned to growth while WPP Creative, all regions and most client sectors remained in decline. The company reiterated its 2026 outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Revenueother | £3.27B | – | 0.5% |
| Q3 2026 Revenue less pass-through costsother | £2.41B | – | (2.0%) reported; (2.1%) LFL |
| YTD 2026 Revenueother | £9.65B | – | (2.8%) reported; (1.9%) LFL |
| YTD 2026 Revenue less pass-through costsother | £7.16B | – | (4.4%) reported; (3.9%) LFL |
| Q3 2026 Revenue M&A impactother | 0.0% | – | – |
| Q3 2026 Revenue FX impactother | 0.0% | – | – |
| Q3 2026 Revenue less pass-through costs M&A impactother | (0.1%) | – | – |
| Q3 2026 Revenue less pass-through costs FX impactother | 0.2% | – | – |
| YTD 2026 Revenue M&A impactother | (0.1%) | – | – |
| YTD 2026 Revenue FX impactother | (0.8%) | – | – |
| YTD 2026 Revenue less pass-through costs M&A impactother | 0.0% | – | – |
| YTD 2026 Revenue less pass-through costs FX impactother | (0.5%) | – | – |
| Global Integrated Agencies Q3 2026 LFL revenue less pass-through costs growthother | (2.1%) | – | – |
| Global Integrated Agencies YTD 2026 LFL revenue less pass-through costs growthother | (3.9%) | – | – |
| WPP Media Q3 2026 LFL revenue less pass-through costs growthother | 0.3% | – | – |
| WPP Media Q3 2026 share of revenue less pass-through costsother | 45% | – | – |
| WPP Media YTD 2026 LFL revenue less pass-through costs growthother | (3.6%) | – | – |
| WPP Media YTD 2026 share of revenue less pass-through costsother | 45% | – | – |
| WPP Creative Q3 2026 LFL revenue less pass-through costs growthother | (5.1%) | – | – |
| WPP Creative Q3 2026 share of revenue less pass-through costsother | 48% | – | – |
| WPP Creative YTD 2026 LFL revenue less pass-through costs growthother | (5.0%) | – | – |
| WPP Creative YTD 2026 share of revenue less pass-through costsother | 49% | – | – |
| WPP Production Q3 2026 LFL revenue less pass-through costs growthother | 2.5% | – | – |
| WPP Production Q3 2026 share of revenue less pass-through costsother | 7% | – | – |
| WPP Production YTD 2026 LFL revenue less pass-through costs growthother | 1.9% | – | – |
| WPP Production YTD 2026 share of revenue less pass-through costsother | 6% | – | – |
| Average adjusted net debt at 30 September 2026other | £3.2B | – | – |
| Adjusted net debt at 30 September 2026other | £3B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America Q3 2026 revenue less pass-through costsReflecting a sequential improvement with some benefit from easier comparables, but also encouraging trends at WPP Media partially offset by LFL performance in WPP Creative. | £919M | – | (1.2%) reported; (1.8%) LFL |
| EMEA Q3 2026 revenue less pass-through costsA continuation of the sequential improvement from the second quarter. | £974M | – | (3.0%) reported; (1.7%) LFL |
| APAC Q3 2026 revenue less pass-through costsDriven primarily by a step down in China which contracted by 8.7% in Q3, in line with expectations and reflecting timing factors. | £365M | – | (3.7%) reported; (4.3%) LFL |
| LATAM Q3 2026 revenue less pass-through costsA sequential slowdown from Q2 with declines in Mexico on prior year client losses. | £153M | – | 4.8% reported; (1.2%) LFL |
| North America YTD 2026 revenue less pass-through costsNorth America declined 1.8% LFL in Q3. | £2.71B | – | (6.4%) reported; (4.6%) LFL |
| EMEA YTD 2026 revenue less pass-through costsEMEA declined 1.7% LFL in Q3. | £2.94B | – | (3.4%) reported; (3.5%) LFL |
| APAC YTD 2026 revenue less pass-through costsAPAC declined 4.3% LFL in Q3. | £1.07B | – | (5.1%) reported; (4.0%) LFL |
| LATAM YTD 2026 revenue less pass-through costsLATAM declined 1.2% LFL in Q3. | £440M | – | 3.5% reported; (1.2%) LFL |
2026 outlook
- RevenueFollowing first half down 4.7%, like-for-like revenue less pass-through costs to decline low to mid-single digits in the second half of 2026
- Tax rateHeadline effective tax rate between 33% to 34%
- NoteHeadline operating profit margin expected to be 12% to 13%
- NoteAdjusted operating cash flow before working capital of £800m to £900m
- NoteMergers and acquisitions will not significantly impact revenue less pass-through costs
- NoteFX impact: current rates (at 15 October 2026, with USD/GBP rate of 1.33) imply a c.0.5% drag on FY 2026 revenue less pass-through costs
- NoteHeadline earnings from associates of around £30m
- NoteNon-controlling interests of around £45m
- NoteHeadline net finance costs of around £290m
- NoteCapex of around £190m
- NoteTotal cash restructuring costs of around £250m, consisting of c.£190m from Elevate28 and c.£60m from historical programmes
- NoteWe continue to expect disposal-related activity to generate cash proceeds of at least £200m
- NoteExcluding anticipated restructuring costs associated with historical plans and the Elevate28 strategy, adjusted operating cash flow before working capital of £1.0bn to £1.1bn
What drove it
- WPP Media returned to growth, benefiting from an improving quarterly trend in spend from existing customers, a growing contribution from new account wins, an easing comparison and some timing benefits.
- WPP Production grew 2.5%, supported by new business wins and strong performance across APAC and LATAM.
- WPP secured new assignments and significant retentions including The Coca-Cola Company, DoorDash, Nestlé, Uber and Waymo.
- Healthcare & Pharma grew 4.3% LFL and Automotive grew 6.7% LFL in Q3.
- India returned to growth at +2.9% in Q3 and Germany returned to growth at +2.4%.
- WPP maintained progress on targeted cost savings and potential asset disposals.
Concerns
- Revenue less pass-through costs declined 2.1% LFL in Q3 and 3.9% LFL year to date.
- WPP Creative declined 5.1% LFL in Q3, with lower client spending partially offset by the ramp up of new business wins.
- All regions declined on an LFL revenue less pass-through costs basis in Q3.
- APAC declined 4.3% LFL, primarily because China contracted by 8.7% in Q3.
- CPG, Tech & Digital Services, Retail, Telecom, Media & Entertainment, Financial Services, Travel & Leisure, Government, Public Sector & Non-profit and Other all recorded Q3 LFL declines.
- Second half margins are expected to decrease by up to c.200 bps year-on-year, reflecting investment phasing, the ramp up of new business wins and the rebuilding of incentives.
- WPP expects LFL revenue less pass-through costs to decline low to mid-single digits in the second half of 2026.
What to watch
- Q4 performance, which WPP expects to be towards the better end of the low to mid-single-digit second-half LFL decline range.
- The conversion of new business wins and client retentions into revenue growth.
- WPP Creative's trajectory after its 5.1% Q3 LFL decline.
- China performance following its 8.7% Q3 contraction and stated timing factors.
- Delivery of the £250m gross run-rate savings target by year-end.
- Progress on portfolio actions and anticipated disposal-related cash proceeds of at least £200m.
- Appointment of a successor to Chief Financial Officer Joanne Wilson.
Balance sheet and cash flow
- Average adjusted net debt (for the last 12-month rolling period) at 30 September 2026 was £3.2bn, compared to £3.4bn at 30 September 2025, and £3.4bn at 31 December 2025.
- Adjusted net debt at 30 September 2026 was £3.0bn, against £3.6bn as at 30 September 2025.
- The Group adopted the IFRS 9 amendments effective 1 January 2026. This increased cash and cash equivalents and reduced adjusted net debt by £180m as at 1 January 2026.
- As at 30 September 2026, the impact of the amendments was that cash and cash equivalents were higher and adjusted net debt was lower by £214m.
- The 12-month rolling average adjusted net debt as at 30 September 2026 was £167m lower, calculated by applying the amendments for the period 1 October 2025 to 30 September 2026.
- Adjusted operating cash flow before working capital guidance is £800m to £900m.
Analysis
WPP reported Q3 revenue of £3,274m, up 0.5% reported and LFL from £3,259m in Q3 2025. Revenue less pass-through costs was £2,411m, down 2.0% reported and 2.1% LFL from £2,459m. Year-to-date revenue less pass-through costs was £7,156m, down 4.4% reported and 3.9% LFL. The company described the quarter as in line with expectations and cited further sequential improvement in LFL growth.
The business mix showed a split performance. WPP Media returned to 0.3% LFL growth and WPP Production grew 2.5%, while WPP Creative declined 5.1%. Media benefited from improving spend from existing customers, new account wins, an easing comparison and timing benefits. Production was supported by new business wins and strong APAC and LATAM performance. Creative faced lower client spending, although new business wins continued to ramp. The top 25 clients declined 2.7% LFL, compared with -3.2% in Q2, and WPP said the quarter reflected prior-year client assignment losses.
Regional LFL revenue less pass-through costs remained negative across the group. North America declined 1.8%, EMEA 1.7%, APAC 4.3% and LATAM 1.2%. APAC was affected by China, which contracted 8.7% following +15.6% in Q2, while India returned to growth. At the sector level, Automotive and Healthcare & Pharma grew 6.7% and 4.3%, respectively, but CPG, Tech & Digital Services, Retail, Telecom, Media & Entertainment, Financial Services, Travel & Leisure, Government, Public Sector & Non-profit and Other declined.
WPP reiterated its 2026 expectations. It expects second-half LFL revenue less pass-through costs to decline low to mid-single digits, with Q4 towards the better end of that range, and reiterated a 12% to 13% headline operating profit margin. It expects second-half margins to decrease by up to c.200 bps year-on-year due to investment phasing, the ramp up of new business wins and rebuilding incentives. Adjusted operating cash flow before working capital is expected at £800m to £900m, or £1.0bn to £1.1bn excluding anticipated restructuring costs.
Balance-sheet measures improved versus the prior year. Average adjusted net debt was £3.2bn at 30 September 2026 versus £3.4bn at 30 September 2025, and adjusted net debt was £3.0bn versus £3.6bn. The company noted that IFRS 9 amendments reduced adjusted net debt by £214m as at 30 September 2026. Operationally, management highlighted client renewals and wins, continuing cost-savings work, and portfolio actions as it pursues the first stabilisation phase of Elevate28.
Management, verbatim
We are on track to deliver phase one of Elevate28: stabilising our business performance and laying the foundations for a simpler, more unified WPP. Our integrated client proposition and modern data solutions are gaining traction with both new and existing clients.
Cindy Rose OBE, Chief Executive Officer of WPP
Client demand remains healthy for our AI-enabled media, creative, production and enterprise solutions, powered by our agentic marketing platform WPP Open. Winning competitive pitches to renew long-standing partnerships with clients like The Coca-Cola Company and DoorDash provides further evidence of commercial momentum and client confidence in WPP’s ability to drive brand differentiation and business growth at a global scale.
Cindy Rose OBE, Chief Executive Officer of WPP
Our third quarter results show further sequential improvement in LFL growth, in line with our expectations. This reinforces my confidence in our strategy and our ability to deliver our plan. We remain focused on disciplined execution as we prepare for the ‘Build’ phase of Elevate28 and position WPP for a return to growth during 2027.
Cindy Rose OBE, Chief Executive Officer of WPP
Not in the filing
stated, not guessed- Period-end date explicitly stated as the reporting-period end beyond the balance-sheet reference to 30 September 2026
- Gross profit and gross margin
- Operating income or operating profit for Q3 and year to date
- Net income or earnings for Q3 and year to date
- GAAP or IFRS EPS
- Adjusted or non-GAAP EPS
- Cash and cash equivalents balance
- Free cash flow
- Quarterly operating cash flow
- Share repurchases
- Dividends
- Absolute revenue less pass-through costs for WPP Media, WPP Creative and WPP Production
- Prior-year absolute revenue less pass-through costs by business segment
- Prior outlook section for comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
WPP's Elevate28 plan aims to stabilise performance and drive growth through AI‑enabled solutions.
Ticker impact
WPP reported Q3 2026 revenue of £3.274bn, up 0.5% YoY, and reaffirmed FY operating margin guidance of 12-13%.
likely slight pressure as market prices in flat guidance
The numbers are new and the guidance is reaffirmed, offering limited upside; investors may react conservatively.
Market effects
Advertising and marketing sector sees modest growth, no major shift.
UK‑listed advertising firms may face similar modest performance.
Limited, as WPP is a single‑company earnings update.
Counterpoint
If investors expect stronger growth, the flat guidance could trigger a sell‑off.
Key entities
- ExecutiveCindy Rose
Chief Executive Officer of WPP
