Shares of WPP reached their highest level in nearly a year after the advertising giant reported a smaller-than-expected drop in sales and continued progress on cost cuts and artificial intelligence investment.
The FTSE 250 company’s revenue fell 2.8% to £2.5 billion in the second quarter, an improvement from the 7% decline in the first three months of the year. The update sent its stock up 28.6%, or 87.9p, to 395p.
Turnaround efforts show early signs of progress
Under new CEO Cindy Rose, who took over last September, WPP has focused on reducing expenses and streamlining operations. The company said 1,267 employees—about 1.3% of its workforce—left in the first half of the year, helping cut staff costs by 5.9% to £3.47 billion.
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Rose, a former Microsoft executive, has pledged to save £500 million by 2028. In a statement, she called the latest results “a further sequential improvement” and evidence of “the momentum we are building.”
Still, the company acknowledged that “legacy account losses” continued to weigh on performance. Despite the challenges, WPP secured new clients, including Estée Lauder and Jaguar Land Rover, offering a rare bright spot in an otherwise difficult period.
Investors have been skeptical of WPP’s ability to compete with global rivals after years of declining profits. The stock has fallen nearly 60% over the past five years and was removed from the FTSE 100 last year after nearly three decades in the index.
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Analysts noted that even modest improvements could shift market sentiment. Russ Mould, investment director at AJ Bell, said WPP’s struggles meant “it doesn’t take much more than some glimmers of hope to shift the market narrative.” He added that while it was still early, investors appeared encouraged by the latest signs of progress.
Rose added: “While the turnaround of our financial performance will take time to fully flow through, our strong new business wins and improved client retention, as well as progress on cost savings and portfolio actions, demonstrate that we are building a simpler, more competitive and higher-performing WPP.”
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