Published by Global Banking & Finance Review®
Posted on June 4, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on Google
S4 Capital lowers its revenue forecast as tech clients remain cautious due to economic conditions and U.S. tariffs, with a focus on AI technologies.
(Reuters) -Martin Sorrell's ad group S4 Capital said on Wednesday it expects annual like-for-like net revenue to decline by low single digits, as tech clients remain cautious amid a weaker global economy and U.S. tariffs.
The company had previously expected 2025 revenue and operational core earnings to be broadly similar to 2024.
S4, which generates nearly half of its business from the technology sector, said tech clients continued to favour capital spending over marketing, while the unit continued to see a hit by reduced work from a major client.
The owner of the Monks ad agency maintained its full-year like-for-like core operating profit forecast.
Once there is more certainty regarding U.S. tariffs, S4 said it expects clients will become more selective about where they operate and will focus on technologies such as artificial intelligence to drive performance in a slower growth environment.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Mrigank Dhaniwala)
S4 Capital expects its annual like-for-like net revenue to decline by low single digits.
Tech clients are prioritizing capital spending over marketing due to a weaker global economy.
The company has maintained its full-year like-for-like core operating profit forecast.
S4 Capital believes that once there is more certainty regarding U.S. tariffs, clients will become more selective about their operations.
Clients are focusing on technologies such as artificial intelligence to drive their spending.
Explore more articles in the Finance category
