WPP shares edge lower as weak client spending persists despite Q1 beat

WPP reported first-quarter results that were slightly ahead of expectations, but the company said weak client spending and broader uncertainty continue to weigh on the business.

In its April 28 trading update, WPP said revenue less pass-through costs fell 6.7% like-for-like to £2.26 billion in the quarter. The company said the quarter was in line with expectations and reiterated its full-year guidance.

WPP also pointed to stronger new-business momentum, but warned that near-term demand remains fragile, including pressure tied to the Middle East conflict. Market coverage said the shares edged lower after the update as investors focused on the softer spending backdrop.

The results suggest WPP is still working through a difficult ad-market environment: the company is stabilizing execution enough to keep performance close to expectations, but not yet seeing a broad-based recovery in client budgets.

For now, the main watchpoint is whether the new-business momentum turns into a more durable lift in spending later in the year, or whether the current caution from clients continues into the next quarter.