WPP Cuts 2025 Profit Forecast After Slow Q2

WPP has downgraded its full-year financial guidance following a sharper-than-expected slowdown in Q2 trading and weaker net new business wins.

In a trading update released Tuesday July 8th, the holding company said it now expects underlying revenue from its main business, excluding major client-controlled costs like media buying, to fall between -3% and -5% for the full year. That’s a downgrade from its previous forecast of flat to a 2% decline.

The revision comes after WPP reported a deteriorating performance through the second quarter, with Q2 net revenue from core operations now anticipated to decline between -5.5% and -6.0%, worse than the first quarter and below company expectations. Overall, H1 net revenue from core operations is forecasted to decline by 4.2% to 4.5%.

The downturn, WPP noted, has been driven by a tougher macroeconomic backdrop and a shortfall in new business momentum. One-off factors in Q2 and severance actions, particularly within WPP Media, have also contributed to the dip.

The company has also seen some shifts in its client roster in recent months. Coca-Cola moved its North American media business to Publicis Groupe, while Mars appointed the same holding company to handle its $1.7 billion global media account. WPP has also seen work conclude with clients such as Paramount and Starbucks. 

The update also comes amid broader volatility in UK markets. The FTSE 100 fell sharply earlier this year following renewed tariff threats from president Trump, with investors growing more cautious around global growth and trade tensions. While markets later rebounded, the Bank of England has continued to warn that such geopolitical uncertainty could weigh on business confidence – a backdrop that may be contributing to slower marketing spend and more conservative client outlooks.

Despite the setbacks, there have been some bright spots on the win side. WPP secured Heineken’s commerce business, L’Oréal’s global influencer marketing account, and retained Electronic Arts’ media duties. Generali and Levi’s are two other recent wins. WPP remains a key creative partner to Coca-Cola.

The holding company was also named Creative Company of the Year at this year’s Cannes Lions. Speaking with LBB during the festival, chief creative officer Rob Reilly said that, despite the fact “our stock price could be better”, WPP is ready to fight back. “Maybe when you're in the front of the army, you get hit first and bloodied up. And I think in the end, we will be at the top,” he said.

WPP now expects headline operating profit for the first half of the year to land between £400 million and £425 million, with profit margins falling by 2.8 to 3.3 percentage points compared to last year – not counting the impact of currency fluctuations.

Chief executive officer Mark Read, who will leave the business in December after seven years at the helm, said, “Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying, and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.

“Our focus remains on ensuring the right balance between investing in the business for the long-term and continuing to reduce structural costs, while taking appropriate actions to respond to the current trading environment.”

As a result of the updated outlook, WPP now expects its full-year headline operating profit margin to decline between 50 and 175 basis points, compared to previous guidance of around flat.