Key Takeaways
WPP Plc (NYSE: WPP) reported a broad growth slowdown in the first quarter of 2026, continuing a difficult period that has seen its stock fall 52.52% over the past 52 weeks as it navigates a major corporate restructuring.
"WPP shares fell to near their lowest level since 1998 as the company reported weak results driven by client assignment losses and reduced client spending," investment management company Hotchkis & Wiley stated in its first-quarter 2026 investor letter. The firm noted that after a weak 2025, WPP fired its CEO and the new chief executive started in September.
The advertising group confirmed a decline across all its main business units for the period ending March 31, according to a report on April 28. Specific revenue and earnings-per-share figures for the quarter were not disclosed in the provided information. The company’s stock closed at $17.77 on April 23, reflecting a market capitalization of $3.83 billion, according to data from a Hotchkis & Wiley letter.
The slowdown puts more pressure on the company's "Elevate28" turnaround plan, a strategy implemented by CEO Cindy Rose to unify WPP's sprawling network of agencies. The program is a direct response to a "disastrous 2025 performance," which was marked by declining revenues, significant client losses, and a reduced market valuation.
The Elevate28 initiative aims to move WPP from a fragmented collection of competing agency networks toward an integrated structure that provides a single, coherent offering to clients. This shift is supported by a new leadership team, including several women in top executive roles, and a focus on embedding AI and technology across the group's operations.
Despite the weak top-line results, some investors see potential in the turnaround. Hotchkis & Wiley, which holds the stock, pointed to net new business wins in the fourth quarter of 2025 that continued into early 2026. The firm believes the company can deliver positive returns as margins expand from a current 12.5% toward a normalized 16% level, noting the stock is "trading at a very low multiple of consensus earnings, which we believe are depressed.”
The results highlight the deep challenges facing WPP's new leadership. Investors will be watching for signs that the Elevate28 strategy can translate recent new business momentum into sustained revenue growth in the upcoming quarters.
This article is for informational purposes only and does not constitute investment advice.
