Research
Research Alert: CFRA Keeps Hold Opinion On Adss Of Wpp - Soft Q1, Recovery Expected In 2h
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:WPP's Q1 2026 net like-for-like (LFL) revenue declined 7% Y/Y to GBP2B, broadly in line with expectations and representing 23% of full-year forecasts, consistent with historical seasonality. The decline reflects prior client losses and cautious client spending, with management guiding for a mid- to high-single-digit decline in 1H 2026 and recovery in 2H 2026 as new business ramps. Global Integrated Agencies remained the key drag, down 7% Y/Y, led by WPP Media (-9% Y/Y), although trends improved sequentially from Q4, indicating early stabilization. Public Relations (-3% Y/Y) and Specialist Agencies (-2% Y/Y) were more resilient, supported by stronger new business in North America and stable niche demand. We maintain 2026 revenue at GBP13.8B and 2027 at GBP14B, and EPADS at GBP3.20 and GBP3.25, reflecting near-term margin pressure from operating deleverage and incentives, with recovery dependent on new business conversion, cost actions, and stabilization in client spending. We keep our Hold rating.
$WPP