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WPP
(LSE:WPP)
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Rating:59Neutral
Price Target:
417.00 p
▲(9.36% Upside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakened financial performance (2025 net loss, margin pressure, and higher leverage), partially offset by resilient—though declining—cash generation. Technically, the stock shows strong upward momentum and is trading well above key moving averages, but it appears extended (high RSI/Stoch). Valuation is mixed: an attractive dividend yield is tempered by a negative P/E. The latest earnings call supports a stabilization narrative and cash/debt progress, but near-term revenue and margin headwinds keep the outlook moderate.
Positive Factors
Cash Generation and Debt Reduction
Sustained operating cash generation gives WPP resources to fund transformation, service debt and protect liquidity. The year-on-year debt reduction improves financial flexibility, although leverage remains a consideration.
Negative Factors
Persistent Organic Revenue Decline
Ongoing organic contraction indicates that WPP is still losing scale in its core services and facing market pressure. Continued declines can weaken operating leverage, limit investment capacity and delay the targeted return to growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation and Debt Reduction
Sustained operating cash generation gives WPP resources to fund transformation, service debt and protect liquidity. The year-on-year debt reduction improves financial flexibility, although leverage remains a consideration.
Read all positive factors
WPP (WPP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.04B
Dividend Yield3.98%
Average Volume (3M)5.56M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-6.47%
EPS Growth-162.96%
CountryUK
Employees97,388
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-0.22
Shares Outstanding1,078,802,400
10 Day Avg. Volume3,605,742
30 Day Avg. Volume5,563,345
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
£364.29Price Target Upside-4.46% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.52
Revenue Forecast (FY)£9.71B
WPP Business Overview & Revenue Model
Company Description
WPP plc operates as a global creative transformation leader, offering a comprehensive suite of communications, experience, commerce, and technology solutions. The company's extensive international reach covers North America, the United Kingdom, We...
How the Company Makes Money
WPP primarily makes money by selling marketing and communications services to corporate and public-sector clients under ongoing retainers, project-based engagements, and performance- or outcome-linked arrangements. Its major revenue streams typica...
WPP Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presented a cautiously optimistic tone: management emphasized that the business is stabilizing with clear leading‑indicator progress (strong new business momentum, strategic reorganizations, AI/partner integrations, cost savings and portfolio monetization) and improved quarter‑over‑quarter revenue trends. However, material near‑term headwinds remain (ongoing net new business drag from prior losses, EPS decline, seasonal H1 cash outflow, elevated leverage and second‑half margin reinvestment). On balance, the positive operational and strategic momentum, combined with tangible financial progress (net debt reduction, cash generation over 12 months, disposals), outweigh the short‑term challenges and support a constructive outlook toward returning to growth in 2027.Positive Updates
Stabilizing Organic Revenue Trend with Sequential Improvement
Like-for-like net sales declined 4.7% in H1 2026 but showed quarter-by-quarter improvement (Q1: -6.7% to Q2: -2.8%), indicating an improving trajectory and stabilization in revenue trends.
Negative Updates
Continued Organic Revenue Decline
H1 like-for-like revenue less pass-through costs declined 4.7% and reported revenue less pass-through costs fell 5.6% year-on-year, reflecting continued legacy client losses and market pressures.
Read all updates
Q2-2026 Updates
Positive
Negative
Stabilizing Organic Revenue Trend with Sequential Improvement
Like-for-like net sales declined 4.7% in H1 2026 but showed quarter-by-quarter improvement (Q1: -6.7% to Q2: -2.8%), indicating an improving trajectory and stabilization in revenue trends.
Read all positive updates
Company Guidance
The company reiterated guidance that after H1 like‑for‑like net sales fell 4.7% (Q1 -6.7%, Q2 -2.8%), it now expects H2 like‑for‑like revenue less pass‑through costs to decline low‑ to mid‑single digits and a return to growth in 2027; headline operating margin is guided to 12–13% for the full year (H1 margin 8.4%, H1 headline operating profit £398m, headline EPS 15.1p), with H2 margins expected to be up to 200bps lower year‑on‑year as incentives and growth investments ramp; adjusted operating cash flow pre‑working capital is guided to £800–900m (excluding in‑year restructuring c.£100m, the underlying range would be c.£1.0–1.1bn), disposal‑related cash proceeds are expected to contribute at least £200m in 2026, Elevate28 targets £500m gross annualised savings over three years with ~£100m delivered in 2026 and a £250m run‑rate by year‑end, adjusted net debt was down £326m y/y to £2.9bn (average adjusted net debt £3.3bn, 12‑month leverage ~2.18x), available liquidity £4.1bn (incl. $2.5bn RCF undrawn), bond debt £5.1bn (WAM 5.7 years, avg coupon 3.7%), effective tax rate c.33–34%, interim dividend 7.5p (full year expected c.15p), and management reiterated gross client losses are at the top end of the 500–600bps range while gross wins are ahead of 2025, so net new business remains a drag but should ease through H2.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 | 13.26B | 13.55B | 14.74B | 14.84B | 14.43B | 12.80B |
| Gross Profit | 2.11B | 2.15B | 2.45B | 2.52B | 2.54B | 2.20B |
| EBITDA | 1.75B | 1.67B | 1.90B | 1.91B | 2.03B | 1.78B |
| Net Income | -240.00M | -215.00M | 542.00M | 110.40M | 682.70M | 637.70M |
Balance Sheet | ||||||
| Total Assets | 23.57B | 24.07B | 25.51B | 26.62B | 28.82B | 27.87B |
| Cash, Cash Equivalents and Short-Term Investments | 2.36B | 2.69B | 2.64B | 2.22B | 2.49B | 3.88B |
| Total Debt | 7.18B | 6.83B | 6.35B | 6.88B | 7.18B | 6.83B |
| Total Liabilities | 20.79B | 21.30B | 21.77B | 22.79B | 24.66B | 23.80B |
| Stockholders Equity | 2.60B | 2.54B | 3.48B | 3.38B | 3.68B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 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 | -278.00M | -355.00M | 278.00M | -380.40M | -408.90M | -638.40M |
| Financing Cash Flow | -22.00M | -311.00M | -989.00M | -904.70M | -1.91B | -2.06B |
WPP Technical Analysis
Positive
381.30
Price Trends
323.95
Positive
294.42
Positive
286.42
Positive
Market Momentum
12.94
Positive
54.27
Neutral
36.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WPP, the sentiment is Positive. The current price of 381.3 is below the 20-day moving average (MA) of 388.69, above the 50-day MA of 323.95, and above the 200-day MA of 286.42, indicating a neutral trend. The MACD of 12.94 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
88 Outperform | £1.25B | 16.77 | 62.38% | 4.04% | -4.03% | -16.79% | |
77 Outperform | £327.01M | 26.70 | 6.46% | 3.40% | 2.11% | 818.58% | |
72 Outperform | £328.85M | -107.83 | -0.61% | 2.25% | -6.07% | 99.09% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | £4.04B | -16.86 | -9.33% | 3.93% | -6.47% | -162.96% | |
58 Neutral | £318.75M | -10.58 | -20.40% | 4.92% | -15.42% | -176.16% | |
53 Neutral | £176.08M | -82.68 | -6.04% | 1.23% | -12.14% | -117.78% |
* Communication Services Sector Average
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WPP Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
WPP Director Peter Agnefjäll Named Chair of JD Sports Fashion
Positive
Aug 7, 2026
WPP has disclosed that non-executive director Peter Agnefjäll will take on an additional role as chair of the board at JD Sports Fashion plc, effective 1 September 2026. The appointment, reported under Financial Conduct Authority listing rule...
Business Operations and StrategyDividendsFinancial Disclosures
WPP Margins Improve as Elevate28 Turnaround Gains Traction Despite H1 Revenue Decline
Neutral
Aug 6, 2026
WPP reported first-half 2026 revenue of £6.37 billion, down 4.4% reported and 3.2% like-for-like, with revenue less pass-through costs falling 4.7% like-for-like, but margins improving and operating profit rising on lower impairments and cost...
Regulatory Filings and Compliance
WPP Updates Market on Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
WPP has confirmed that as of 31 July 2026 its issued share capital comprised 1,091,394,251 ordinary shares of 10 pence each, of which 12,591,893 are held in treasury. As a result, the total number of voting rights in WPP stands at 1,078,802,358, a...
Business Operations and StrategyFinancial Disclosures
WPP sets August date to present 2026 interim results and Elevate28 progress
Neutral
Jul 8, 2026
WPP will release its interim results for the six months ended 30 June 2026 on 6 August 2026, providing investors with an updated view on the company’s financial performance and operational progress. The announcement continues the group’...
Regulatory Filings and Compliance
WPP Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
WPP has disclosed that as of 30 June 2026 its issued share capital comprised 1,091,394,251 ordinary shares of 10 pence each, with 12,591,893 of those shares held in treasury. After accounting for treasury shares, the company confirmed that the tot...
Executive/Board ChangesRegulatory Filings and Compliance
WPP CEO Cindy Rose Receives Vested Share Award Under 2022 Performance Plan
Neutral
Jun 16, 2026
WPP has disclosed that Chief Executive Officer Cindy Rose has received 187,341 ordinary shares following the vesting of a conditional share award granted under its 2022 Executive Performance Share Plan. As part of this transaction, 88,227 of those...
Regulatory Filings and Compliance
WPP Updates Share Capital and Voting Rights Ahead of FCA Disclosure Thresholds
Neutral
Jun 1, 2026
WPP has reported that, as of 29 May 2026, its issued share capital amounted to 1,091,394,251 ordinary shares of 10 pence each, of which 12,591,893 shares are held in treasury, leaving 1,078,802,358 voting shares outstanding. The updated voting rig...
Regulatory Filings and Compliance
WPP Director Peter Agnefjäll Buys 75,000 Shares on LSE
Positive
May 21, 2026
WPP plc has disclosed that non-executive director Peter Agnefjäll purchased 75,000 ordinary shares in the company at a price of £2.8117 per share. The transaction, conducted on 21 May 2026 on the London Stock Exchange, was reported in ac...
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.