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WPP Slashes 2025 Revenue Outlook as Shares Sink 30%

The firm is stepping up a £300 million annual AI investment in preparation for CEO Mark Read’s exit later this year.

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Overview

  • WPP cut full-year like-for-like revenue guidance to a 3%–5% decline and forecast a 50–175 basis-point drop in headline operating profit margin.
  • Its U.S.-listed shares plunged about 30%, hitting their lowest level since March 2020.
  • The company attributed the downgrade to a challenging economic backdrop, reduced client spending and weaker net new business.
  • Key account losses, including Pfizer and Coca-Cola’s North America media buying, have weighed on performance.
  • Management plans to boost AI and technology spending to £300 million annually as it prepares for Mark Read’s succession.