WPP's (WPP) recovery timing remains uncertain as pressure on the company's operating performance could continue through 2026, Moody's said in a Friday note.

According to Moody's, the pressure stems from cautious client spending, net account losses, and challenges in deploying its technology and data capabilities across the group. WPP management has also acknowledged a potentially challenging 2026, with client losses holding back revenue, the financial services company said.

Meaningful revenue growth is unlikely before 2027, Moody's said, noting that it expects "gradual improvement" from 2027 onwards. This will be driven by market share stabilization, increased WPP Open adoption, WPP Media revenue growth, and the company's Elevate28 strategy, the firm added.

Moody's downgraded WPP's long-term issuer ratings to Baa3 from Baa2, and revised its outlook to stable from negative.