WPP’s headline revenue inched up in the third quarter of fiscal 2026, but the group’s most closely watched like-for-like metric is still sliding. Revenue reached £3.27 billion, a 0.5% year-on-year increase, while revenue less pass-through costs fell 2.1% like-for-like to £2.41 billion, the company said in its October 29 trading update.
Stabilisation, not acceleration
The quarter matched WPP’s expectations and showed another sequential improvement in underlying revenue trends. The group kept its full-year 2026 guidance unchanged: revenue less pass-through costs is still forecast to decline low to mid-single digits in the second half, with the fourth quarter at the better end of that range. The headline operating margin expectation stays at 12% to 13%.
For the first nine months, revenue stood at £9.65 billion, down 1.9% like-for-like. Revenue less pass-through costs fell 3.9% to £7.16 billion.
Media stabilises; Creative slips
WPP Media, roughly 45% of the group’s revenue less pass-through costs, returned to growth. It rose 0.3% like-for-like in Q3, a marked swing from the 2.8% decline in Q2. Healthier existing client spending, earlier gains from new accounts, softer comparisons and some timing benefits contributed.
WPP Creative, including enterprise solutions, moved the other way, falling 5.1% compared with a 3.5% decline in Q2. Integrated creative agencies were the main drag, while PR returned to growth and brand and design agencies recorded mid-single-digit growth. Production improved to 2.5% growth from 1.3% in Q2.
Regional picture splits sharply
All four regions reported lower revenue less pass-through costs. North America slipped 1.8%, EMEA 1.7%, APAC 4.3% and LATAM 1.2%. Beneath those aggregates, the performance was uneven.
- India returned to growth, up 2.9% in Q3 after a 6% fall in Q2.
- China swung from 15.6% growth to an 8.7% decline, which WPP tied to timing.
- Germany grew 2.4%, while the UK fell 1.2%.
- Middle East & Africa dropped 12.4% amid geopolitical uncertainty.
Automotive and healthcare hold up
Client-sector results remained split. Automotive grew 6.7% and healthcare and pharma grew 4.3%. Consumer packaged goods, WPP’s largest sector at 27% of revenue less pass-through costs, declined 6.4%. Tech & digital services fell 3.9% and retail fell 6%. The top 25 clients improved to a 2.7% decline from 3.2% in Q2.
Wins included the renewal of Coca-Cola’s global media partnership outside North America, Japan and South Korea, an expanded DoorDash media remit, Waymo’s media account for North America and EMEA, Nestlé’s China content model, TurboTax digital video and social, Godrej Consumer Products in several markets, and the UK Electoral Commission. CEO Cindy Rose said the wins reflected client confidence in WPP’s global model, and that demand for AI-enabled solutions remains healthy.
AI and the path back to growth
WPP added 48 data partnerships to Open Intelligence, taking the total to almost 400, and expanded its Kyndryl partnership. In September, Burson acquired cognitive AI firm Limbik. The group also opened Devon’s Point, a 34,000 sq ft production facility in East London.
Elevate28 remains the roadmap. WPP is targeting £250 million in gross run-rate savings by the end of 2026 and a return to organic growth in 2027. For marketers, the update is a revealing read on agency health: media is stabilising and India has turned, but CPG, retail and tech spending are still cautious. The big question is whether new accounts and AI products convert into real acceleration before 2027.
Source: MediaNews4U
