WPP issues another profit warning. Its new CEO promises change, but not yet.

By Steve Goldstein

Advertising agency WPP issued its second profit warning in three months.

Ad agency WPP issued its second profit warning since July on Thursday - and its first under a new chief executive - sending its already-battered stock sharply lower.

WPP said it now expects 2025 like-for-like revenue, excluding pass-through costs, to fall between 5.5% and 6%, leading to an operating margin of 13%.

According to UBS, analysts were expecting revenue on that basis to fall 4.5% and for profit margins of 13.5%.

In July, it said revenue would fall 3% to 5%, a lowering of guidance between flat and a 2% drop.

WPP shares (UK:WPP) (WPP) tumbled 14%, and the stock has collapsed by 62% this year.

Cindy Rose, who took over as CEO from Mark Read in September, called the result "unacceptable."

"There is a lot to do, and it will take time to see the impact, but in my first 60 days we are already moving at pace with some initiatives already announced and more to come," she said, promising new details early next year.

Russ Mould, investment director at AJ Bell, said WPP is struggling with the rise of artificial intelligence and social-media networks that undercut its role.

"The firm's culture is rooted in traditional advertising and the world has gone digital, leaving the company scrambling to play catch-up. Cindy Rose has a big job on her hands, but it looks like investors aren't prepared to play wait and see any more," he said.

-Steve Goldstein

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10-30-25 0752ET