WPP PLC has reported a decrease in its key revenue metric for the first quarter, attributed to declining revenue across all of its primary business divisions. The company is currently focused on reversing its operational downturn after experiencing a series of client losses and management changes.

On Tuesday, WPP disclosed that its first-quarter like-for-like revenue, which excludes pass-through costs, fell by 6.7% year-over-year.

This core metric, which eliminates the impact of costs passed to clients, currency fluctuations, mergers, acquisitions, and asset disposals, is a closely watched measure of underlying revenue. The actual performance surpassed the 8% decline anticipated by analysts surveyed by research firm Vuma.

Chief Executive Officer Cindy Rose stated, "It will take time to reverse the trend of past business losses, but the first-quarter performance was in line with expectations and showed improvement compared to the fourth quarter of 2025."

A breakdown by business division shows: - The global integrated agencies division saw a 7.4% decline in like-for-like revenue excluding pass-through costs, primarily dragged down by client losses from the previous year. - The public relations business segment decreased by 2.6% year-over-year. - The specialist agencies segment declined by 2.3%.

WPP stated that, despite ongoing short-term uncertainty caused by the Middle East conflict, the company is maintaining its full-year performance guidance.

The group had previously cautioned that, due to recent client losses, like-for-like revenue excluding pass-through costs would experience a mid-to-high single-digit percentage decline in the first half of the year. An improvement in operating conditions is anticipated in the second half.

The company continues to expect its full-year overall operating profit margin to remain between 12% and 13%. Adjusted operating cash flow before working capital adjustments is projected to be in the range of £800 million to £900 million.

As the parent company of well-known agencies such as Ogilvy and VML, WPP has faced significant client losses in recent years, putting pressure on its performance and stock price, ultimately leading to a management overhaul.

Currently, the entire advertising industry is confronting dual pressures: on one hand, investors are concerned about the long-term impact of artificial intelligence on the industry's business model; on the other hand, geopolitical conflicts in the Middle East are creating short-term operational uncertainty.

In February of this year, WPP CEO Cindy Rose unveiled a three-year recovery plan. This involves a comprehensive restructuring of the company's organization, consideration of divesting non-core businesses, and aims to return to organic growth by 2027.

The company indicated that initial signs of recovery have already emerged and it expects a gradual improvement in full-year performance.

According to data from J.P. Morgan, WPP ranked first among the world's leading advertising groups for net new business wins in the first quarter, supported by new contracts with major clients such as Estée Lauder.