WPP shares plunge as it slashes 2025 outlook

Headline operating profit for the first half is forecast to fall within the range of £400m to £425m, reflecting a margin decline of 280 to 330 basis points year-on-year (excluding currency effects). The company attributed part of the profit erosion to severance costs at WPP Media.

WPP’s revised full-year outlook is even more downbeat. The group now expects LFL revenue less pass-through costs to fall by 3% to 5% in 2025, compared with its earlier forecast of flat to a 2% decline. Headline operating profit margin is also set to contract by 50 to 175 basis points, a marked shift from the previous expectation of a flat margin.

The market’s reaction was swift and severe. WPP shares plunged 14% to £4.52 in London following the announcement, making it the worst performer in the FTSE 100 index on the day, even as the broader index edged up 0.1%. The scale of the drop was unmatched by any other blue-chip stock, highlighting the market’s alarm at the sharp downgrade and the company’s deteriorating outlook.

This latest plunge compounds a difficult year for WPP shareholders. The company is already the worst-performing stock in the FTSE 100 so far in 2025, with its shares down by a third year-to-date.

Outgoing chief executive Mark Read did not mince words about the scale of the challenge. “Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business,” he said. “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.”

• WPP’s succession race is on: who are the front runners and wildcards?

With Read’s planned departure looming, the task for his successor will be substantial. The incoming leader will inherit a company facing intensified competition, ongoing margin pressure and the need to adapt rapidly to evolving client demands and technological disruption, including the rise of AI.

The profit warning and current trading challenges underscore the scale of the job ahead for WPP’s new CEO, who will need to build on the foundations laid by Read while addressing the immediate pressures revealed in this latest update.