WPP Plc said revenue declined in the first quarter after sales in its European business units dropped, while Chief Executive Officer Mark Read said the company hasn’t seen client reaction from tariffs yet.

Revenue, excluding pass-through costs for services from other vendors, fell 2.7% to £2.48 billion ($3.3 billion), the British advertising agency said in a statement on Friday. That compares to the £2.54 billion average analyst forecast compiled by Bloomberg.

WPP said it would maintain its guidance for the year and that it hasn’t seen any client reaction so far after US President Donald Trump levied global tariffs that upended markets. The company had already warned that sales this year would remain flat, at best, and Read said in February that he was worried about customers pulling back because of the uncertain political environment.

The tariffs — many of which are still uncertain but threaten to upend supply chains and disrupt sales into the US — are clouding outlooks for companies across industries this quarter. French rival Publicis Groupe SA said last week it would stick to its revenue forecast for 2025, betting recent client wins would help it weather the economic uncertainty.

WPP shares rose 1.3% to close at 559.80 pence in London trading on Thursday. The company’s stock has declined 32% this year.

WPP, once the largest ad agency globally, has been working on ways to reignite growth and streamline its operations. The British ad firm had previously restructured its stable of brands to save costs and announced a plan to spend hundreds of millions of pounds on new technologies including building out artificial intelligence capabilities.

Publicis became the biggest ad company by revenue for the first time in 2024 after years of growth from acquisitions and the expansion of its digital business. The French company will soon be overtaken when Omnicom Group completes its acquisition of Interpublic Group.

This story was originally featured on Fortune.com