WPP Q3 FY25 revenue down 8.4% YoY

WPP has reported a 5.9% like-for-like (LFL) decline in revenue less pass-through costs for the third quarter of 2025, as the company grapples with client losses, weak ad spending, and continued macro uncertainty in key markets.

Total Q3 revenue stood at £3.26 billion, down 8.4% year-on-year on a reported basis, while revenue less pass-through costs came in at £2.46 billion, down 11.1% reported and 5.9% LFL. Year to date, revenue less pass-through costs fell 4.8% LFL to £7.49 billion.

With performance “at the low end of expectations,” WPP cut its full-year outlook, now projecting FY organic growth between -5.5% and -6.0%, compared to its previous forecast of -3% to -5%. The company maintained its headline operating margin guidance at around 13%.

“Our recent performance is unacceptable, and we are taking action to address this,” said Cindy Rose, who took over as Chief Executive Officer on September 1. “We will simplify our offering, integrate data and AI more deeply, and dramatically improve execution. It will take time, but we’re moving at pace.”

Business Segment Breakdown

The Global Integrated Agencies segment, which houses media, creative, and production arms such as WPP Media, Ogilvy, and AKQA, saw Q3 revenue less pass-through costs fall 6.2% LFL.

WPP Media declined 5.7% LFL, reflecting client assignment losses in the US and UK and a “significant deterioration” in Germany.

Other integrated agencies were down 6.5%, with volatility in client spending.

Public Relations fell 5.9% LFL, while Specialist Agencies — including healthcare media player CMI Media Group and Landor & Partners — declined 2.2%, despite strong healthcare growth.

Regional Snapshot

By geography, North America was down 6.0% LFL, the UK fell 8.9%, and Western Continental Europe slipped 4.4%.
The Rest of the World segment fell 5.0%, with India up 6.7% offset by a 10.6% drop in China.

India continues to be a rare bright spot, driven by momentum at WPP Media and Hogarth.

Client and Sector Trends

WPP’s top 25 clients — representing the majority of its revenue — declined 2.0% YTD, performing better than the group average.
The strongest sector performance came from Healthcare & Pharma, which grew 6.7% in Q3, while Consumer Packaged Goods (CPG), Automotive, and Retail all saw declines of 6–8% LFL.

New business wins included Mastercard, Maersk, Nestlé, PwC, and Comic Relief, alongside creative mandates for Lipton Teas and the Abu Dhabi Grand Prix.

Strategic Reset Underway

Since assuming leadership, Rose has launched a strategic review centered on four priorities:

Simplifying and integrating WPP’s client offering.

Building a high-performance culture and improving execution.

Expanding the addressable market through enterprise and technology solutions.

Strengthening financial performance with disciplined capital allocation.

The CEO has also appointed Devika Bulchandani as COO of WPP and Laurent Ezekiel as Global CEO of Ogilvy Group, signaling renewed leadership focus on performance.

AI, Tech, and Partnerships

WPP continues to double down on AI-powered marketing, with over 76,000 employees (90% of client-facing staff) now using its proprietary platform WPP Open.

The company also announced the launch of WPP Open Pro, a next-generation edition designed to let brands plan, create, and activate campaigns directly — broadening WPP’s addressable market.

In October, WPP extended its partnership with Google for five years to advance cloud and AI technology, promising real-time marketing personalization and improved ROI.

The company is on track to invest £300 million in AI-driven technology in 2025, underscoring its ambition to lead in marketing innovation.

Outlook: Slowdown Before Stabilisation

WPP expects further deterioration in Q4 due to additional client assignment losses but remains focused on margin protection and long-term transformation.
Average adjusted net debt stood at £3.4 billion, flat year-on-year.

Rose emphasised that change will take time but expressed optimism:

“We’re building the right plan and culture to secure a bright future for WPP, our people, our clients, and our shareholders.”