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Home > Finance > Sorrell's S4 lifts 2025 profit forecast, prompting near 42% share price jump

Sorrell's S4 lifts 2025 profit forecast, prompting near 42% share price jump

Published by Global Banking and Finance Review

Posted on January 26, 2026

2 min read

Last updated: January 26, 2026

Tags:Financial performance investment

Quick Summary

S4 Capital's 2025 revenue and profit exceed market expectations, showcasing strong financial performance under Martin Sorrell's leadership.

S4 Capital Boosts 2025 Profit Outlook, Shares Surge Nearly 42%

S4 Capital's Financial Outlook and Market Response

(Corrects headline to 'near 42%', not 32%)

Impact of Client Spending on Advertising

Jan 26 (Reuters) - Martin Sorrell's S4 Capital said on Monday its 2025 profit and revenue would be ahead of its previously lowered forecast, sending the advertising group's shares nearly 42% higher.

Future Growth and Technology Investments

S4 now expects its 2025 net revenue and operational core profit to exceed analysts' estimates of 664 million pounds ($907 million) and 75 million pounds, respectively.

Dividend Recommendations and Financial Health

The advertising market has been grappling with reduced client spending as they prioritise investments in areas such as artificial intelligence amid economic and geopolitical uncertainty, weighed on agencies across the sector.

S4, which has cut costs and streamlined operations to offset these pressures, also said its net debt would be below consensus forecasts and its previously guided range of 100 million-140 million pounds after improved working capital management.

Shares in S4, which fell nearly 38% in 2025, were on track for their best day's performance since May 2018.

'MUCH MORE TO BE DONE'

Although the results signalled stabilization, S4 said clients remain cautious on budgets while turning to new technologies including AI, blockchain and quantum computing.

"There is still much more to be done around net revenue and margin growth in 2026 and beyond," Sorrell said in a statement.

S4, which relies heavily on technology-focused companies for its income, said continued market softness is still expected to drive like-for-like net revenue about 8.5% lower.

Despite signalling in November it may consider an enhanced final dividend, S4 said it will recommend a 1 pence per share payout on Monday, the same as the year before.

$1 = 0.7320 pounds)

(Reporting by Raechel Thankam Job and Ankita Bora in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Alexander Smith)

Key Takeaways

•S4 Capital's 2025 revenue and profit exceed expectations.
•Martin Sorrell leads the advertising group.
•Financial results surpass market consensus.
•Strong operational core profit reported.
•Positive outlook for S4 Capital's future.

Frequently Asked Questions about Sorrell's S4 lifts 2025 profit forecast, prompting near 42% share price jump

1What is revenue?

Revenue is the total income generated from the sale of goods or services before any expenses are deducted. It is a key indicator of a company's financial performance.

2What is operational profit?

Operational profit, also known as operating income, is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.

3What is financial performance?

Financial performance is a measure of how well a company uses its assets to generate revenue and profit, often evaluated through financial statements and ratios.

S4 Capital's Financial Outlook and Market Response

(Corrects headline to 'near 42%', not 32%)

Impact of Client Spending on Advertising

Jan 26 (Reuters) - Martin Sorrell's S4 Capital said on Monday its 2025 profit and revenue would be ahead of its previously lowered forecast, sending the advertising group's shares nearly 42% higher.

Future Growth and Technology Investments

S4 now expects its 2025 net revenue and operational core profit to exceed analysts' estimates of 664 million pounds ($907 million) and 75 million pounds, respectively.

Dividend Recommendations and Financial Health

Shares in S4, which fell nearly 38% in 2025, were on track for their best day's performance since May 2018.

'MUCH MORE TO BE DONE'

Although the results signalled stabilization, S4 said clients remain cautious on budgets while turning to new technologies including AI, blockchain and quantum computing.

"There is still much more to be done around net revenue and margin growth in 2026 and beyond," Sorrell said in a statement.

S4, which relies heavily on technology-focused companies for its income, said continued market softness is still expected to drive like-for-like net revenue about 8.5% lower.

Despite signalling in November it may consider an enhanced final dividend, S4 said it will recommend a 1 pence per share payout on Monday, the same as the year before.

$1 = 0.7320 pounds)

(Reporting by Raechel Thankam Job and Ankita Bora in Bengaluru; Editing by Rashmi Aich, Janane Venkatraman and Alexander Smith)

Frequently Asked Questions

1What is revenue?

Revenue is the total income generated from the sale of goods or services before any expenses are deducted. It is a key indicator of a company's financial performance.

2What is operational profit?

Operational profit, also known as operating income, is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.

3What is financial performance?

Financial performance is a measure of how well a company uses its assets to generate revenue and profit, often evaluated through financial statements and ratios.