Shares in marketing and advertising group WPP surged nearly 30 percent following an update showing a slower-than-expected decline in second-quarter revenues and ongoing progress in its turnaround strategy. The FTSE 250 company reported underlying revenues of £2.5 billion for the quarter, representing a 2.8 percent fall compared to a 7 percent drop in the first quarter of 2026. This easing in revenue decline provided a boost to investor confidence amid efforts by new CEO Cindy Rose to stabilize the business.

WPP’s shares rose sharply to 395p, marking their highest level in almost a year. The company’s performance was supported by new client wins, including significant accounts with beauty company Estée Lauder, Jaguar Land Rover, and European media work for Henkel Consumer Brands. Despite ongoing losses of some legacy clients, WPP emphasized improvements in client retention and a more streamlined business model.

Since taking over in September 2025, former Microsoft executive Rose has initiated a broad restructuring program focused on simplifying WPP’s operations. This includes consolidating hundreds of operating units into four main divisions—creative, production, media, and enterprise solutions—and unifying bonus structures to reduce internal silos. The plan targets £500 million in cost savings by 2028, with £100 million expected this year alone.

WPP has also undertaken significant workforce reductions, cutting nearly 8,500 jobs, or roughly 8 percent of its staff, over the past year. This is part of a broader strategy to reduce costs, invest in artificial intelligence, and enhance partnerships with technology companies such as Google and Meta. Staff costs fell by nearly 6 percent to £3.47 billion in the first half of 2026.

Financially, statutory revenue for the first half of the year declined by 4.4 percent to £6.4 billion, while pre-tax profits increased 8 percent to £106 million, driven by lower staff and restructuring expenses. Adjusted net debt decreased to £2.9 billion from £3.3 billion a year earlier. The group also anticipates generating about £200 million in proceeds from the sale of non-core businesses this year to strengthen its balance sheet.

WPP has faced challenges from a broader macroeconomic downturn impacting advertising spending and a history of client losses. However, Rose indicated there has been no significant pullback in marketing investment from clients despite economic headwinds. She is aiming to return the company to organic growth possibly as early as 2027.

Market analysts noted that while it is still early in the turnaround, the latest results offer a more positive outlook after years of share price decline and a recent exclusion from the FTSE 100 index. The company’s renewed focus on cost discipline, portfolio reshaping, and technological innovation signals a strategic shift aimed at restoring competitiveness in an evolving global advertising landscape.