WPP (WPP) H1 2026 earnings summary

Executive summary

• H1 2026 results met expectations, with like-for-like net sales down 4.7% year-over-year and sequential improvement from Q1 to Q2, especially in WPP Media and Creative.

• Elevate28 transformation advanced, integrating operations into four units and launching WPP Enterprise Solutions.

• Strong new business momentum, topping net new business rankings, with significant client wins and recognition at Cannes Lions 2026.

• Cost savings and portfolio rationalisation on track, with £100m in-year savings and over £200m expected from asset disposals in FY 2026.

• Interim dividend maintained at 7.5p per share.

Financial highlights

• Like-for-like revenue less pass-through costs declined 4.7% in H1 2026, with headline operating profit at £398m (margin 8.4%, up 0.2pt YoY).

• Headline diluted EPS was 15.1p, down from 20.0p, mainly due to higher tax rate and lower profit.

• Adjusted net debt at 30 June 2026 was £2,935m, down £326m YoY, supported by strong operating cash flow and asset disposals.

• Adjusted operating cash flow before working capital was £309m, down from £363m.

• Interim dividend declared at 7.5p, flat year-on-year.

Outlook and guidance

• H2 2026 like-for-like revenue less pass-through costs expected to decline low to mid-single digits; FY headline operating margin guided at 12–13%.

• Adjusted operating cash flow before working capital projected at £800–900m for FY 2026.

• Return to growth anticipated in 2027, with margin expansion and improved financial leverage.

• Asset disposals expected to contribute at least £200m to cash flow in 2026, with further disposals possible in 2027.

• Capex forecast at £190m; headline effective tax rate guided at 33–34%.