WPP Issues Second 2025 Profit Warning, Shares Plunge

WPP, the world's second-largest advertising group, has issued its second profit warning of the year, lowering its full-year 2025 revenue and profit outlook due to worsening macroeconomic conditions and weaker client spending. The company now forecasts a 3% to 5% decline in like-for-like revenue less pass-through costs for 2025, compared to its previous projection of flat to a 2% decline, and expects operating profit margins to fall. The announcement caused WPP's shares to plunge up to 18% in premarket trading, reaching a 16-year low and making it the worst performer on the FTSE 100. CEO Mark Read, who will depart by year-end, cited intensifying economic uncertainty, fewer and smaller new business opportunities, and disappointing June client activity as key reasons for the downgrade. WPP's efforts to streamline operations and focus on AI at its media division have not yet improved performance. The company warned that these challenging trends are expected to persist into the second half of the year.