WPP produced one of the most dramatic stock-market reactions of the day after evidence that its struggling advertising business may finally be stabilising.
Shares in the London-based group climbed by as much as 29% following the publication of its interim financial results. The increase was particularly remarkable because WPP’s revenue continued to fall, but the decline was considerably smaller than market forecasts.
Revenue excluding costs passed directly to clients dropped by 2.8% on a comparable basis during the second quarter. In the opening quarter of the year, the same measurement had fallen by 6.7%.
Analysts had expected another decline of more than 6%, meaning the reported result offered investors their clearest indication yet that the company’s deterioration may be slowing.
Across the first half of 2026, WPP generated total revenue of £6.37 billion, down from £6.66 billion a year earlier. Revenue excluding pass-through costs fell by 4.7% on a like-for-like basis to approximately £4.75 billion.
Headline operating profit declined from £412 million to £398 million. Nevertheless, that figure was well above market expectations, suggesting that cost reductions are beginning to protect the company’s margins.
Chief executive Cindy Rose is attempting to simplify a complicated organisation assembled through years of acquisitions. Creative agencies are being brought together under WPP Creative, while media operations are being consolidated through WPP Media.
The restructuring is intended to eliminate duplicated roles, reduce administrative costs and make it easier for clients to access creative, media, production and technology services through one organisation.
WPP has also sold 15 businesses considered non-essential to its future strategy. Further disposals are being examined, including a possible sale of the company’s 40% interest in market-research group Kantar.
Client performance has started to improve as well. WPP recently secured work from companies including Estée Lauder and Jaguar Land Rover while retaining important accounts associated with Huawei and L’Oréal.
Artificial intelligence occupies a central position in the recovery plan. WPP is investing in tools that can analyse audiences, personalise advertisements and create multiple campaign versions more quickly.
However, AI also represents a threat. If brands can produce marketing materials internally using automated systems, traditional advertising agencies may face pricing pressure and reduced demand for some creative services.
WPP must therefore demonstrate that its technology can strengthen human creativity and deliver measurable sales growth rather than simply produce advertising more cheaply.
The company expects its performance to continue improving during the second half of 2026, although it has not yet returned to overall revenue growth. The share-price surge reflects increased confidence, but a lasting recovery will depend on retaining major clients and converting recent contract wins into income.
