WPP (WPP) Q3 2026 TU earnings summary

Executive summary

• Elevate28 phase one remains on track, with Q3 LFL growth improving sequentially; FY guidance was reiterated and a return to growth is targeted during 2027.

• Integrated client offerings and AI-enabled media, creative, production and enterprise solutions are gaining traction; major client renewals and wins supported commercial momentum.

Financial highlights

• Q3 revenue was £3,274m, up 0.5% reported and LFL; revenue less pass-through costs was £2,411m, down 2.0% reported and 2.1% LFL.

• YTD revenue of £9,647m fell 2.8% reported and 1.9% LFL; revenue less pass-through costs of £7,156m fell 4.4% reported and 3.9% LFL.

• Q3 revenue less pass-through costs improved from a 5.9% LFL decline a year earlier and a 2.8% decline in Q2.

Outlook and guidance

• FY 2026 LFL revenue less pass-through costs expected to decline low to mid-single digits in H2, with Q4 toward the better end of the range.

• FY headline operating margin guidance remains 12%–13%; H2 margin is expected to decrease by up to c.200 bps YoY, reflecting investment, new-business ramp-up and incentive rebuilding.

• Adjusted operating cash flow before working capital is expected at £800m–£900m; excluding anticipated restructuring costs, the expectation is £1.0bn–£1.1bn.

• Other FY assumptions include headline net finance costs of c.£290m, headline effective tax rate of 33%–34%, capex of c.£190m and headline earnings from associates of c.£30m.