WPP's top-line performance remains under pressure with an 8.3% revenue decline in 2025Q4, while net margins have deteriorated to -3.8% due to rising operational costs.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 13.55B | 14.74B | 14.84B | 14.43B | 12.8B | 12B | 13.23B | 13.05B | 13.15B | 14.89B | 12.24B | 11.53B | 11.02B | 10.37B | 10.02B | 9.33B | 8.68B | 7.48B | 6.19B | 5.91B | 5.37B | 4.3B |
| Revenue Growth % | -8.08% | -0.7% | 2.88% | 12.71% | 6.65% | -9.3% | 1.44% | -0.76% | -11.69% | 21.68% | 6.13% | 4.62% | 6.23% | 3.51% | 7.4% | 7.45% | 16.15% | 20.87% | 4.71% | 9.94% | 24.98% | - |
| Cost of Goods Sold | 11.4B | 12.29B | 12.33B | 11.89B | 10.6B | 9.99B | 10.83B | 10.56B | 10.48B | 11.85B | 9.71B | 1.46B | 943.3M | 1.25B | 1.16B | 1.14B | 1.1B | 714.7M | 517.6M | 482.7M | 388.4M | 328.5M |
| COGS % of Revenue | 84.16% | 83.37% | 83.03% | 82.41% | 82.79% | 83.21% | 81.8% | 80.93% | 79.73% | 79.57% | 79.35% | 12.7% | 8.56% | 12.03% | 11.57% | 12.27% | 12.63% | 9.56% | 8.37% | 8.17% | 7.23% | 7.64% |
| Gross Profit | 2.15B | 2.45B | 2.52B | 2.54B | 2.2B | 2.01B | 2.41B | 2.49B | 2.66B | 3.04B | 2.53B | 10.06B | 10.08B | 9.13B | 8.86B | 8.19B | 7.59B | 6.76B | 5.67B | 5.43B | 4.99B | 3.97B |
| Gross Margin % | 15.84% | 16.63% | 16.97% | 17.59% | 17.21% | 16.79% | 18.2% | 19.07% | 20.27% | 20.43% | 20.65% | 87.3% | 91.44% | 87.97% | 88.43% | 87.73% | 87.37% | 90.44% | 91.63% | 91.83% | 92.77% | 92.36% |
| Gross Profit Growth % | -12.44% | -2.7% | -0.77% | 15.2% | 9.37% | -16.36% | -3.16% | -6.65% | -12.37% | 20.38% | -74.9% | -0.11% | 10.42% | 2.97% | 8.26% | 7.89% | 12.21% | 19.3% | 4.48% | 8.82% | 25.54% | - |
| Operating Expenses | 1.76B | 1.13B | 1.99B | 1.18B | 974.6M | -263.2M | 1.11B | 1.24B | 1.09B | 977.7M | 894.1M | 8.56B | 8.67B | 7.83B | 7.67B | 7.17B | 6.79B | 5.79B | 4.82B | 4.65B | 4.29B | 3.44B |
| OpEx % of Revenue | 13.02% | 7.64% | 13.39% | 8.18% | 7.61% | -2.19% | 8.41% | 9.52% | 8.27% | 6.57% | 7.31% | 74.23% | 78.64% | 75.48% | 76.52% | 76.89% | 78.24% | 77.44% | 77.9% | 78.63% | 79.79% | 79.93% |
| Selling, General & Admin | 1.76B | 1.14B | 2B | 1.18B | 974.6M | 4.29B | 1.12B | 1.25B | 1.1B | 987.1M | 903.9M | 7.16B | 7.22B | 7.83B | 7.67B | 7.17B | 6.79B | 5.79B | 4.82B | 4.65B | 4.29B | 3.44B |
| SG&A % of Revenue | 13.02% | 7.71% | 13.46% | 8.18% | 7.61% | 35.77% | 8.47% | 9.58% | 8.33% | 6.63% | 7.39% | 62.12% | 65.5% | 75.48% | 76.52% | 76.89% | 78.24% | 77.44% | 77.9% | 78.63% | 79.79% | 79.93% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -10M | 0 | 0 | 0 | -4.56B | -7.4M | -7.1M | -8.7M | -9.4M | -9.8M | 1.4B | 1.45B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 382M | 1.32B | 531M | 1.36B | 1.23B | 2.28B | 1.3B | 1.25B | 1.58B | 2.06B | 1.63B | 1.51B | 1.41B | 1.3B | 1.19B | 1.01B | 792.8M | 972.3M | 849.2M | 779.9M | 697.5M | 534.4M |
| Operating Margin % | 2.82% | 8.99% | 3.58% | 9.41% | 9.6% | 18.98% | 9.79% | 9.54% | 12% | 13.86% | 13.34% | 13.07% | 12.8% | 12.49% | 11.91% | 10.84% | 9.13% | 13% | 13.73% | 13.2% | 12.98% | 12.43% |
| Operating Income Growth % | -71.17% | 149.53% | -60.9% | 10.51% | -46.05% | 75.79% | 4.06% | -21.08% | -23.52% | 26.42% | 8.27% | 6.88% | 8.9% | 8.54% | 17.98% | 27.57% | -18.46% | 14.5% | 8.89% | 11.81% | 30.52% | - |
| EBITDA | 628M | 1.82B | 1.71B | 1.87B | 1.77B | 2.91B | 1.62B | 1.7B | 2.03B | 2.49B | 2B | 1.88B | 1.82B | 1.69B | 1.58B | 1.39B | 1.19B | 1.22B | 1.03B | 965.8M | 844.9M | 637.8M |
| EBITDA Margin % | 4.63% | 12.34% | 11.49% | 12.97% | 13.83% | 24.24% | 12.21% | 13.03% | 15.47% | 16.73% | 16.35% | 16.34% | 16.56% | 16.31% | 15.73% | 14.92% | 13.72% | 16.37% | 16.71% | 16.35% | 15.72% | 14.83% |
| EBITDA Growth % | -65.48% | 6.65% | -8.85% | 5.68% | -39.13% | 80.1% | -4.98% | -16.42% | -18.34% | 24.51% | 6.2% | 3.23% | 7.87% | 7.29% | 13.25% | 16.87% | -2.66% | 18.36% | 7.05% | 14.31% | 32.47% | - |
| D&A (Non-Cash Add-back) | 246M | 494M | 1.17B | 513.1M | 541.8M | 631M | 319.4M | 454.7M | 456.1M | 427.8M | 368.5M | 376.4M | 414.5M | 396.6M | 383.5M | 380.8M | 398.4M | 251.4M | 184.7M | 185.9M | 147.4M | 103.4M |
| EBIT | 382M | 1.4B | 735.3M | 1.52B | 1.23B | -2.48B | 1.29B | 1.24B | 1.57B | 2.05B | 1.62B | 1.64B | 1.43B | 1.28B | 1.19B | 1.03B | 913.6M | 979.7M | 894.3M | 812.2M | 699.5M | 522.4M |
| Net Interest Income | -349M | -414M | -274.6M | -238.5M | -232.1M | -238M | -252.7M | -173.1M | -164.2M | -164.7M | -141.9M | -158.1M | -190.5M | -202.1M | -187.5M | -187.2M | -196.5M | -150.3M | -114.2M | -91.2M | -83.6M | -61.1M |
| Interest Income | 3M | 3M | 114.4M | 120.9M | 51.5M | 74M | 99M | 98.9M | 95.4M | 80.4M | 72.4M | 94.7M | 64.3M | 54.7M | 64.1M | 41.8M | 111.5M | 128.6M | 102.1M | 80.1M | 57.8M | 56.4M |
| Interest Expense | 352M | 417M | 389M | 359.4M | 283.6M | 312M | 351.7M | 272M | 259.6M | 245.1M | 214.3M | 252.8M | 254.8M | 256.8M | 251.6M | 229M | 308M | 278.9M | 216.3M | 171.3M | 141.4M | 117.5M |
| Other Income/Expense | -251M | -294M | -184.7M | -198.4M | -278.2M | -5.07B | -81.6M | -226M | 316.1M | -172.6M | -139.4M | -55.4M | -114.5M | -272.6M | -250.9M | -215.3M | -187.2M | -271.5M | -171.2M | -139M | -139.4M | -129.5M |
| Pretax Income | 131M | 1.03B | 346.3M | 1.16B | 950.8M | -2.79B | 1.21B | 1.02B | 1.89B | 1.89B | 1.49B | 1.45B | 1.3B | 1.02B | 942.3M | 796.1M | 605.6M | 700.8M | 678M | 640.9M | 558.1M | 404.9M |
| Pretax Margin % | 0.97% | 6.99% | 2.33% | 8.04% | 7.43% | -23.25% | 9.18% | 7.81% | 14.41% | 12.7% | 12.2% | 12.59% | 11.76% | 9.86% | 9.4% | 8.53% | 6.97% | 9.37% | 10.96% | 10.85% | 10.39% | 9.42% |
| Income Tax | 303M | 402M | 149.1M | 384.4M | 230.1M | 127.1M | 287.2M | 256M | 83M | 388.9M | 247.5M | 300.4M | 283.7M | 197.2M | 91.9M | 190.3M | 155.7M | 232.9M | 204.3M | 199.4M | 194M | 135M |
| Effective Tax Rate % | 231.3% | 38.99% | 43.06% | 33.14% | 24.2% | -4.55% | 23.65% | 25.12% | 4.38% | 20.57% | 16.58% | 20.69% | 21.89% | 19.29% | 9.75% | 23.9% | 25.71% | 33.23% | 30.13% | 31.11% | 34.76% | 33.34% |
| Net Income | -215M | 542M | 110.4M | 682.7M | 637.7M | -2.97B | 844.1M | 824.6M | 1.96B | 1.4B | 1.16B | 1.08B | 936.5M | 822.7M | 840.1M | 586M | 437.7M | 439.1M | 465.9M | 435.8M | 363.9M | 273M |
| Net Margin % | -1.59% | 3.68% | 0.74% | 4.73% | 4.98% | -24.7% | 6.38% | 6.32% | 14.94% | 9.4% | 9.48% | 9.34% | 8.5% | 7.93% | 8.38% | 6.28% | 5.04% | 5.87% | 7.53% | 7.38% | 6.77% | 6.35% |
| Net Income Growth % | -139.67% | 390.94% | -83.83% | 7.06% | 121.51% | -451.27% | 2.36% | -58.01% | 40.25% | 20.68% | 7.71% | 15.02% | 13.83% | -2.07% | 43.36% | 33.88% | -0.32% | -5.75% | 6.91% | 19.76% | 33.3% | - |
| Net Income (Continuing) | -172M | 629M | 197.2M | 775.4M | 720.7M | -2.92B | 927.1M | 763.3M | 1.81B | 1.5B | 1.25B | 1.15B | 1.01B | 825.3M | 850.4M | 605.8M | 449.9M | 467.9M | 473.7M | 441.5M | 364.1M | 269.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 16.4M | -3.8M | 126.4M | 237.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 232M | 259M | 457.1M | 479.6M | 452.6M | 318.1M | 371.4M | 424.4M | 468.8M | 443.1M | 378.4M | 326.7M | 259.7M | 249.6M | 231M | 201.3M | 181.7M | 197.6M | 120.4M | 91.5M | 81.3M | 54.6M |
| EPS (Diluted) | -1.00 | 2.45 | 0.50 | 3.05 | 2.60 | -12.00 | 3.35 | 2.75 | 6.75 | 5.40 | 4.40 | 4.05 | 3.45 | 3.15 | 3.25 | 2.30 | 1.75 | 1.90 | 1.90 | 1.75 | 1.50 | 1.15 |
| EPS Growth % | -140.82% | 390% | -83.61% | 17.31% | 121.67% | -458.21% | 21.82% | -59.26% | 25% | 22.73% | 8.64% | 17.39% | 9.52% | -3.08% | 41.3% | 31.43% | -7.89% | 0% | 8.57% | 16.67% | 30.43% | - |
| EPS (Basic) | -1.00 | 2.50 | 0.50 | 3.10 | 2.65 | -12.10 | 3.40 | 2.35 | 6.85 | 5.50 | 4.50 | 4.10 | 3.60 | 3.40 | 3.50 | 2.50 | 1.80 | 1.90 | 2.00 | 1.80 | 1.50 | 1.25 |
| Diluted Shares Outstanding | 215.2M | 219.4M | 218.8M | 223.28M | 243.06M | 247.2M | 252.12M | 252.24M | 255.16M | 259.2M | 262.6M | 267.5M | 272.06M | 270.52M | 268.44M | 267.8M | 247.64M | 233.92M | 245.42M | 248.44M | 244.96M | 243.92M |
| Basic Shares Outstanding | 215M | 215.4M | 218.61M | 219.58M | 238.82M | 244.6M | 250.85M | 297.69M | 252.22M | 255.56M | 257.7M | 261.48M | 258.76M | 248.68M | 248.54M | 246.62M | 243.74M | 228.68M | 235.38M | 240.2M | 240.02M | 227.22M |
| Dividend Payout Ratio | - | 78.41% | 382.97% | 53.52% | 49.35% | - | 88.91% | 90.64% | 38.27% | 44.03% | 47.04% | 42.7% | 42.42% | 37.27% | 26% | 34.2% | 43.36% | 36.85% | 29.81% | 27.28% | 27.53% | 29.93% |
Cyclical Revenue Contraction
As reported in recent financial statements, WPP experienced a significant -8.3% year-over-year revenue decline in 2025Q4, marking a sustained period of top-line weakness that suggests a broader pullback in corporate marketing spend, particularly within the technology sector that historically serves as a critical growth engine.
The consistent negative growth trajectory indicates that the firm is struggling to offset the loss of project-based assignments with its newer digital transformation offerings. Investors should monitor whether this contraction represents a structural loss of market share or merely a cyclical sensitivity to global macroeconomic volatility.
Based on reported figures, WPP's net margin deteriorated to -3.8% in 2025Q4, reflecting a challenging environment where operating expenses and restructuring costs are currently outpacing the firm's ability to maintain profitability, despite a gross margin that remains relatively stable at 19.0% for the same period.
The disparity between gross and net margins suggests that the company is burdened by significant non-operating items or high fixed-cost overheads that are not scaling with revenue. This margin profile warrants further investigation into whether the ongoing agency consolidation efforts will eventually yield the intended operational efficiencies.
According to recent SEC filings, WPP's operating income fell to $161.0 million in 2025Q4, representing a sharp decline from previous periods and indicating that the firm is currently failing to achieve the necessary operating leverage to protect its bottom line during revenue downturns.
The inability to scale SG&A costs down in proportion to revenue declines suggests a rigid cost structure that may be difficult to adjust in the short term. This lack of operating flexibility appears to be a primary driver of the current volatility in earnings per share.
As indicated by the persistent negative net income of -$259.0 million in 2025Q4, the market may be increasingly skeptical of the long-term efficacy of WPP's agency consolidation strategy, which appears to be incurring substantial costs without yet delivering a clear path to sustainable bottom-line growth.
Short-sellers may focus on the recurring nature of these restructuring charges, which appear to be masking underlying operational weaknesses rather than serving as one-off events. The company's reliance on these transformations to drive future value remains an unproven hypothesis that requires careful monitoring of future cash flow generation.
Quick answers to the most common questions about buying WPP stock.
For fiscal year 2025, WPP plc (WPP) reported total revenue of $13.55B. This represents a 215.2% increase compared to $4.30B in 2004.
WPP plc (WPP) reported a net loss of $215.0M for the fiscal year ending 2025.
WPP plc (WPP) reported an operating income of $382.0M, resulting in an operating profit margin of 2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
WPP plc (WPP) generated $2.15B in gross profit for the year, representing a gross profit margin of 15.8%. This demonstrates the company's core pricing power and production efficiency.