OMC

Omnicom OMC reported strong third-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate. OMC's earnings of $2.73 per share surpassed the Zacks Consensus Estimate by 1.9% and increased 21.9% from the year-ago quarter. Revenues of $6.42 billion topped the consensus estimate by 4.5% and rose 59.1% year over year. The increase primarily reflected the Interpublic Group acquisition. Core Operations delivered 7.2% organic revenue growth, led by Integrated Media and Experiential businesses. Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote Core Operations revenues increased 7.3% year over year to $6.01 billion. Organic growth contributed $400.8 million, while favorable foreign-currency translation added $3.4 million. Acquisitions contributed another $3.2 million. Core Operations exclude businesses already divested or classified as held for sale. Management attributed the performance to stronger competitive positioning, expanded client relationships and integrated service offerings. Omnicom secured assignments from Novo Nordisk, U.S. Bank, L'Oréal and CVS Health. The company extended its Mercedes contract through 2029 and secured an integrated assignment for the 2028 Los Angeles Olympics. Integrated Media generated $3.19 billion, representing 53% of Core Operations revenues. The discipline recorded organic growth exceeding 10%, supported by demand for media, commerce, data, customer relationship management, consulting and content automation services. Advertising revenues were $935.4 million, accounting for 15.6% of the total. The discipline declined organically by a mid-single-digit percentage, although its performance improved from the first half of 2026. Public Relations contributed $678.3 million, representing 11.3% of Core Operations revenues, and recorded low-single-digit organic growth. Experiential & Other generated $644.3 million, accounting for 10.7%, with double-digit organic growth supported by FIFA World Cup-related activities. Health revenues totaled $566.6 million, representing 9.4% of Core Operations revenues, and declined marginally organically. Management does not expect Experiential & Other to grow in the fourth quarter, indicating that the recent boost from major sporting events could moderate. The United States generated $3.62 billion, representing 60.2% of Core Operations revenues, and delivered 10% organic growth. Latin America contributed $226.8 million, expanding organically at a mid-single-digit rate. Euro Markets & Other Europe generated $721.1 million, while the United Kingdom contributed $555.7 million. Asia-Pacific revenues reached $573.1 million. Europe and Asia-Pacific recorded mid-single-digit organic growth, while the United Kingdom declined by a low-single-digit percentage. Middle East & Africa revenues totaled $145.7 million, with organic growth declining by a mid-single-digit percentage amid regional conflict. Adjusted EBITA from Core Operations increased 21.1% to $1.10 billion. The related margin expanded 200 basis points to 18.2%, primarily reflecting cost-reduction synergies and organic revenue growth, partially offset by investments in technology platforms and talent. On a consolidated basis, adjusted EBITA surged 73.6% to $1.13 billion, while the adjusted EBITA margin improved to 17.6% from 16.1%. Reported operating income rose to $991.7 million from $530.1 million, supported by revenue growth and the Interpublic acquisition. Operating expenses increased to $5.43 billion from $3.51 billion, primarily due to the Interpublic acquisition. The quarter included $40.4 million in integration and transaction costs and $84.7 million in severance and repositioning expenses. A $106.8 million gain from a subsidiary disposition partly offset these charges. Net interest expense rose to $104.2 million from $43.2 million, mainly reflecting acquired debt and refinancing activities. The adjusted effective tax rate declined to 25% from 26% a year earlier. Management expects approximately 5% organic revenue growth from Core Operations in 2026. Omnicom remains on track to deliver $900 million in cost-reduction synergies during the year, with 75-85% expected to flow through to the bottom line. Free cash flow totaled $2.35 billion during the first nine months of 2026. Cash and equivalents stood at $3.80 billion at quarter-end, while gross debt totaled $10.24 billion. The company repurchased approximately $3.21 billion in shares during the first nine months. Management expects to complete its $5 billion repurchase authorization by April 2027, while continuing investments in artificial intelligence, technology platforms and strategic growth initiatives. Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Equifax EFX reported better-than-expected third-quarter 2026 results. EFX's adjusted earnings per share of $2.26 outpaced the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. EFX's revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year. ManpowerGroup MAN posted mixed third-quarter 2026 results. MAN's adjusted earnings of $1.01 per share matched the consensus mark and rose 21.7% from the year-ago quarter. MAN's total revenues of $4.84 billion missed the consensus mark by 1.4% but increased 4.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC) : Free Stock Analysis Report ManpowerGroup Inc. (MAN) : Free Stock Analysis Report Equifax, Inc. (EFX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thu, Oct. 22, 2026 - Investor Relations - Greg Lundberg - Chairman and Chief Executive Officer - John Wren - Executive Vice President and Chief Financial Officer - Phil Angelastro Operator: I will now hand the conference over to Greg Lundberg, Investor Relations. Please go ahead. Greg Lundberg: Thank you for joining our third quarter 2026 earnings call. With me today are John Wren, Chairman and Chief Executive Officer, and Phil Angelastro, Executive Vice President and Chief Financial Officer. On our website, omc.com, you will find a press release and a presentation covering the information that we will review today. An archive webcast will be available when today's call concludes. Before we start, I would like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we have included at the end of our investor presentation. Certain of the statements made today may constitute forward-looking statements. These represent our present expectations, and relevant factors that could cause actual results to differ materially are listed in our earnings materials and in our SEC filings, including our 2025 Form 10-K. During the course of today's call, we will also discuss certain non-GAAP measures. You can find the reconciliation of these to the nearest comparable GAAP measures in the presentation materials. We will begin the call with an overview of our business from John, then Phil will review our financial results, and after our prepared remarks, we will open up the lines for your questions. I will now hand the call over to John. John Wren: Thank you, Greg. Good afternoon, everyone, and thank you for joining us today. I am pleased to share our third quarter results. As we approach the 1-year anniversary of the Interpublic acquisition, we continue to deliver on the benefits of the combination. We have strengthened our competitive market position and commercial offerings and are realizing the anticipated transaction synergies, which is reflected in our financial results. Revenue, excluding assets held for sale, grew organically 7.2% in the third quarter. Organic growth for the 9 months was 5.8%. Core adjusted EBITA margin was 18.2% in the quarter, an increase of 200 basis points versus the prior year, and our year-to-date margin of 17%, which is 210 basis points higher than the comparable level in 2025. Our margin expansion reflects strong business performance and cost synergy realization, offset by investments in our talent, operations, and platform. Adjusted EPS in the quarter was $2.73 per share, an increase of 22% versus the prior year. Our strong financial results reflect the competitive advantages of the new Omnicom. We bring together key differentiators that drive client growth. First, Acxiom's trusted identity solution helps clients better understand their consumers. Second, our position as the largest media buyer gives us strength and scale to help clients achieve better commercial outcomes. Third, our data-informed creative leadership engages consumers and drives measurable results. Fourth, our connected capabilities model brings together media, creativity, production, and CRM to create personalized experiences across multiple channels. Lastly, Omni, our AI-powered platform, underpins it all. Together, these advantages connect the entire marketing ecosystem to drive greater value for our clients. We are also helping clients modernize their operations, get more value from their technology investments, and build a more intelligent enterprise. Our capabilities in this area earned recognition in this quarter. Omnicom ranked first in every evaluated use case in Gartner's 2026 Critical Capabilities Report, including AI-driven marketing innovation, and was named a leader in its Magic Quadrant for global digital marketing agencies. We were also named a leader in the IDC MarketScape for worldwide AI-enabled Adobe Professional Services, recognizing our leadership in Adobe technology and AI-enabled services. Additionally, we announced a 5-year strategic collaboration agreement with Amazon Web Services that will help clients modernize their marketing infrastructure and deploy AI at scale. Beyond these recognitions and partnerships, our connected capabilities model is translating into new business, strong client retention, and expanded relationships across our portfolio. We won several new assignments, including Novo Nordisk, U.S. Bank, L'Oréal, and CVS Health. We extended our contract with Mercedes-Benz through the end of 2029, covering media, creative, social media, event and marketing activations, and PR. In sports marketing, where we manage $9.9 billion in sponsorships and talent and oversee one-third of global sports media investments, we secured a major integrated assignment for the 2028 Olympic Games in Los Angeles, spanning sponsorships, creative, and communications. Together, these wins, retentions, and expanded relationships show the growing demand for our services. We are extremely pleased with the progress in bringing Interpublic and Omnicom together. We are realizing the financial benefits of the combination and are on track to deliver $900 million in cost reduction synergies in 2026. At the same time, we are reinvesting in talent and technology to drive future growth. We have made significant platform investments that underpin our client solutions, connecting data, technology, and AI to enable smarter, faster, and more effective marketing. Our portfolio of companies and operations have been streamlined with our connected capabilities model to simplify how we go to market. Our leadership and teams are in place, and our planned people actions are mostly behind us. We are recruiting in high-growth areas and continue to reskill our talent through certified training programs in Omni and AI. We have substantially completed our integration and outsourcing efforts in real estate and back office operations, and we are also realizing the benefits from procurement. Major progress has been made in divesting the businesses we identified as not core to our future. We expect to complete the remaining handful of dispositions in the near term. We have returned significant capital to shareholders through our $5 billion share repurchase plan. We have completed $3.2 billion of repurchases to date, with the remainder to be completed by April 2027. None of this would've been possible without the continued focus and commitment of our people across the company. They have delivered outstanding results for clients while helping us build a stronger and more connected organization. We are pleased that these efforts are reflected in our strong third quarter and year-to-date performance and remain confident in the opportunities ahead. Phil will now provide more color on our financial performance and updated guidance. Phil? Phil Angelastro: Thanks, John. I will start on slide 13, which presents what we call our core operations, which consists of our ongoing operating businesses, excluding dispositions that we have completed and assets held for sale that have not yet been disposed. This slide also presents operating income and EBITDA on a non-GAAP adjusted basis, excluding severance and repositioning costs, acquisition integration costs, and a gain on the sale of businesses in Q3 2026. Looking at our core operations, total revenue increased $407 million or 7.3%, and adjusted EBITDA increased $191 million or 21.1%. The adjusted EBITDA margin increased 200 basis points to 18.2%. Growth in EBITDA was driven by the realization of cost reduction synergies and growth in organic revenue, partially offset by strategic reinvestments in our business and our people, including the investments we've made in integrating and evolving our technology platforms, as well as enhancements of our agentic AI capabilities. Slide 14 reflects the same presentation on a year-to-date basis, where notably adjusted EBITDA increased $553 million or 23%, and the related margin increased 210 basis points to 17.0%. Let's turn to slide 15, which presents our third quarter consolidated reported results and the related non-GAAP adjusted amounts. Please note that because these are reported results, the 2025 presentation reflects the prior year results of Omnicom only and does not include Interpublic. The center columns for each period show the applicable non-GAAP adjustments. In the third quarter of 2026, integration related costs were $40.4 million, which are recorded on the SG&A expense line. Severance and repositioning costs were $85 million and relate to real estate impairment charges recorded in Q3. Finally, a gain of $106.8 million on the sale of businesses in the third quarter of 2026. Below operating income, net interest expense increased to $104 million from $43 million in 2025, due primarily to the assumption of Interpublic's debt of approximately $3 billion. Interest expense increased by $72 million, primarily due to the Interpublic acquisition, as well as from refinancing activity we completed during the first quarter of 2026 and from commercial paper borrowings. Interest income increased by $11 million to $29 million, primarily due to higher average cash balances. Depreciation expense in the quarter was $47 million, and amortization expense was $120 million. Both increased year-over-year, primarily due to the Interpublic acquisition. Quarterly depreciation and amortization levels have been relatively consistent throughout the year, and we would expect Q4 amounts to be similar. Our adjusted tax rate of 25% for the quarter was down a bit from 26% in 2025. For Q4 2026, we estimate our rate to be approximately 26%. Our non-GAAP adjusted net income increased $315.8 million to $752.2 million. Non-GAAP adjusted diluted EPS grew 22% to $2.73 per share from $2.24 per share last year, driven by an increase in adjusted net income. Our fully diluted weighted average shares outstanding for the third quarter were 275.4 million, which increased from Q3 of last year due to shares issued for the Interpublic acquisition, but were down 12% from 313.1 million shares outstanding at year-end 12/31/2025 due to share repurchase activity. Now let's review revenue drivers in more detail, beginning with the components of our revenue change on slide 16. To assist in understanding the drivers of our underlying businesses, this analysis focuses on growth from our core operations exclusive of businesses that have been disposed of or are expected to be disposed of. Organic revenue growth in the quarter was 7.2%, and the impact from foreign exchange translations was positive 0.1%, along with a nominal impact from a small acquisition. In total, revenue from core operations was just over $6 billion. Year to date, organic revenue growth was 5.8%. Given the strong results year to date, we now estimate that full year 2026 organic core revenue growth will be approximately 5%. As you can see, there have been a couple small acquisitions this year contributing a nominal amount to growth. Despite our disposition efforts, we are always actively looking at strategic acquisitions that could enhance our service offerings and competitive profile. Foreign currency translation was also nominal in the quarter. Assuming recent FX rates stay the same, we estimate FX will be slightly negative for Q4 and bringing the full year to a positive of approximately half of 1%. Turning to slide 17, you can see our core operations revenue by discipline for the quarter. In the third quarter of 2026, revenue for integrated media was approximately 53% of our revenues, which included our media, commerce, data, CRM, consulting, and content automation businesses. Revenue for advertising was 15.6%. Health was 9%. PR was 11%, and experiential and other was 11%. Organic revenue growth rates for these core operations disciplines were as follows. Integrated media led the way with very strong growth over 10%. Experiential and other growth was strong double digit in the quarter, again driven by experiential growth related to the FIFA World Cup. However, we do not expect growth in this discipline in Q4. Health was marginally negative in the quarter. Advertising was down in the mid-single digits, an improvement from the first half of 2026, and PR growth was low single digits for the quarter. Slide 18 shows our core operations revenue by region for the quarter. In terms of the top markets, the U.S. represents 60% of revenue. Together, the U.K. and Europe were 21%, followed by Asia-Pacific at 10%, Latin America at 4%, other North America at 3%, and Middle East and Africa at 2%. During the quarter, organic revenue growth rates were as follows. U.S. grew 10%, the U.K. was negative low single digit, and the rest of Europe grew mid-single digit. Latin America and Asia Pacific growth was also mid-single digit, while Middle East and Africa declined mid-single digits as a result of the ongoing conflict. Slide 19 is our revenue weighted by the industry sectors of our clients. Year to date as of the third quarter, pharma and health was our largest category at 19% of revenue. Other double-digit categories include food and beverage, auto, and financial services. Slide 20 is a view of our free cash flow and our primary uses of cash for the first 9 months of the year. The increases in free cash flow and capital expenditures are primarily due to the addition of Interpublic's business. Dividends increased to $703.3 million, resulting from the additional shares issued for the IPG acquisition and the recent increase in the quarterly dividend amount. Capital expenditures, including investment initiatives, grew year-over-year but are at similar levels to the combined historical results of the company. Cash paid for acquisitions in the quarter primarily reflects the acquisition of non-controlling minority interests, as well as earn-out payments on previously completed acquisitions. In the third quarter, as part of our integration efforts, we acquired several minority interests in existing subsidiaries, including IPG's former Middle East affiliate. Additionally, proceeds from assets held for sale for the 9 months were $413.9 million, as seen on slide 26 in the appendix. The most notable change in this table is the change in stock repurchases, which were $3.2 billion during the 9 months of 2026, up from $3 billion as of June 30, 2026. We plan to repurchase additional shares during Q4 2026, and by April 2027, we plan to complete the $5 billion share repurchase program announced in February of 2026. Our definition of free cash flow excludes changes in operating capital, and those changes are set forth in the non-GAAP reconciliations in the appendix on slide 26. Changes in operating capital in the first 9 months of 2026 were negative $2.3 billion of cash, compared to negative $1.4 billion in the same period last year. This increase is primarily due to the addition of Interpublic's business and operations in 2026, which are not included in the prior year amounts, and incremental payments related to severance, repositioning, and integration costs, as well as lease and contractual termination payments. For the 3 months ended September 30, 2026, changes in operating capital were positive $119 million. Slide 21 is a summary of our credit, liquidity, and debt maturities. At the end of the third quarter of 2026, our gross long-term debt was $10.2 billion. Relative to 2025, changes reflect the retirement of our $1.4 billion, 3.6% senior notes that were due April 15, 2026, and the issuance of new senior notes totaling $2.3 billion including $1.7 billion of U.S. dollar-denominated notes at a weighted average coupon of 4.9% and EUR 600 million of euro-denominated notes at a 3.85% coupon. Our next maturity in July of 2027 is now classified as current, which we will address in due course, and we are comfortable with our maturity schedule. Net interest expense is expected to increase to just under $100 million in Q4 2026, from the Q4 2025 actual amount of $53.2 million. The majority of the increase is due to long-term debt assumed from Interpublic, as well as new debt issued and debt refinancing activities in 2026. Please note that the total and net leverage ratios on this slide, which compares the last 12 months ended September 30, 2026, and the prior year, reflect the full assumption of Interpublic's debt, but only EBITDA from Interpublic for the 10 months since the date of acquisition. At September 30, 2026, we were in compliance with the leverage ratio covenant in our credit facility, which makes pro forma adjustments for the impact of the acquisition. On this basis, our total leverage ratio was 2.3 times, which is lower than the 2.7 times at September 30, 2025. Our cash equivalents and short-term investments at the end of the quarter were $3.8 billion. Our liquidity also includes an undrawn $3.5 billion revolving credit facility, which backstops our $3 billion commercial paper program. Before we begin the Q&A session, I would like to provide some additional color on our results to assist you in understanding the prior year base for Q4 2025 in your models. In the tables we have shown you today, such as slide 13, the results for core operations are comparable on a year-over-year basis. Regarding the dispositions and held for sale columns, it's important to note that the 2025 dispositions and asset sale for sale results include all businesses designated as assets held for sale, regardless of when they were disposed of in 2026. The 2026 dispositions and assets held for sale results include all businesses designated as assets held for sale that were not disposed of as of September 30, 2026, or were disposed of during the third quarter ended September 30, 2026. The estimate of annualized revenue for all businesses identified as dispositions and held for sale is an annualized revenue of approximately $3.6 billion in prior year, adjusted EBITDA margin for the year of approximately 11%-12%. To assist investors, slide 32 summarizes revenue and adjusted EBITDA for Q4 2025, including the split between core and dispositions and held for sale. Regarding the businesses in held for sale at the end of the quarter, we expect to complete the remaining dispositions in the near future and by the end of Q4 2026, if possible. While our goal remains December 31, 2026, it is possible that the closing process for some of the transactions extends into the beginning of 2027. Currently, we estimate the revenue related to those businesses will approximate $325 million in Q4 2026. In closing, our third quarter results show continued improvement in our performance, including revenue growth, adjusted EBITDA margins, and earnings per share. We're achieving this while continuing to invest in our business to ensure our success in the future, and while nearing completion on the significant integration projects and our portfolio optimization projects. We believe we're in a strong position heading into the new year and beyond, and look forward to seeing many of you at investor events in the coming weeks. I will now ask the operator to please open the lines up for questions and answers. Thank you. Operator: We will now begin the question and answer session. Please limit yourself to 1 question. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by for a moment while we compile the Q&A roster. Your first call comes from the line of David Karnovsky with J.P. Morgan. Your line is open. Please go ahead. David Karnovsky: Hi. Thanks. John, just when we look at the organic growth to date, in particular for media, it is a strong improvement from where Omnicom was operating pre-IPG. Just given the changes in the portfolio, do you see room to sustain at these levels on a go-forward basis? For Phil, your core margin to date I think is 17%. Historically, IPG would post stronger margins in Q4, and you do have the benefit of more fully realizing synergies from here. Just wanted to see if there was any view you would be willing to provide on how to think about the full-year core margin. Thank you. John Wren: Our connected capabilities, which include media, CRM, advertising, continue to be a very strong offering in the marketplace, and we fully expect that to continue into 2027 as we finish this year. What our organic revenue growth will be for next year, we are not prepared to forecast just yet, but everything has come together pretty well, and our expectations are to stay at a marketing leader position in terms of organic growth going forward. Phil Angelastro: As far as margins go, David, I think we grew our margins about 200 basis points in Q3. For the 9-month period, margins were up 210 basis points. Although we always say we are focused on growing EBITA dollars, which we are, and the margins take care of themselves, I think you should expect something similar. We will certainly going to be striving to grow margins a little bit more in Q4, but I would expect something similar in Q4 and the full year will be an add them up, which given we are at 210 basis points through 9 months, it is going to be in that zone, is what I would say our current expectation is. There is certainly the usual situation in Q4 in terms of where we sit today. We don't have a lot of visibility into project spend at this point, but that certainly we would expect is going to be helpful. We just don't have full visibility to it today. David Karnovsky: Phil, just to that last point on visibility into project work, just how much does that kind of factor into your kind of implied organic for Q4, which is a bit of a detail, or are there kind of other factors that maybe helped in 2Q, 3Q that are a part of that as well? Phil Angelastro: We certainly think it's a conservative estimate, which is consistent with how we've always approached this process, especially for Q4. I think depending where we come out with project spend, while we're not we're certainly, the global macro seems to be fine at the moment, even though there's some headwinds, or a lot of press anyway and noise related to the Middle East. But certainly we expect it to benefit us in the fourth quarter. We just don't have enough visibility to kind of commit to by how much that benefit is going to help us. John Wren: David, you've been covering us a long time, and as long as I remember, as we come into the fourth quarter, there's always a couple of hundred million dollars worth of spend that as clients look to see what's left in their budgets, they either release it, or if they're looking to report more revenue or more net income themselves, sometimes they don't. We have confidence that we've been saying the same thing for the last 20 years, and probably of that, only 1 or 2 years that excess didn't come through. But as Phil just said, we prefer to be conservative in our estimates, because it helps keep everything else in line. Phil Angelastro: Yeah, in terms of how we manage the cost base. It isn't anything inconsistent with how we've approached it in the past. David Karnovsky: Thank you. Operator: Your next question comes from the line of Adam Berlin with Goldman Sachs. Your line is open. Please go ahead. Adam Berlin: Yeah. Hi, good evening. It's Adam Berlin from Goldman Sachs. A couple of questions. The first one is just during the call, I think Ad Age have reported that you've won the Coke North America account. Congratulations on that. Just any comments, particularly given that you also work with Pepsi on creative. Can you keep both? Any conflicts around that, or should we assume that you benefit from the Coke win and also continue to work with Pepsi as you are at the moment? That's the first question. Second question is, can you just give us an update for 2026 at 9 months, how much of the $900 million of the synergies is already in the numbers up to the 9 months? That would be very helpful. Thank you. John Wren: In terms of Coke, we're deferring any comments we want to make about Coke to the client for them to handle as they come to a decision after the process. Any business we win from Coke would be incremental to our existing revenue and our existing relationship because the decision that was made earlier in this third quarter. We're very bullish about where we are and how we're winning business as it comes available, and we feel really good about the company at the moment. Phil Angelastro: As far as the second question, Adam, we continue to track where we expected to be, which is where we're on track to achieve the $900 million in cost reduction synergies. We also, as we had indicated, expect to deliver 75%-85% of that to the bottom line as we go through the year, and we're certainly on pace with where we expected to be when we started out the year. There's a lot of moving parts in the business in terms of how that's going to play through or flow through with the rest of the growth and investments we're making. But we're certainly on track through the first 9 months, and we don't have any reason to believe anything other than we will achieve the goal when we get to the end of the year, and then we'll certainly start or continue to focus on what comes next in 2027. A number of those efforts with respect to additional synergies in 2027 have been put in place and it's just a matter of timing as to when those improvements come through. Adam Berlin: Okay. Thank you. Phil Angelastro: Thank you. Operator: Your next question comes from the line of Jason Bazinet with Citigroup. Your line is unmuting. Just a few seconds. Go ahead. Jason Bazinet: Thanks. Can I just ask 1 question about the revenues from the assets that you are holding for sale? I think on the last call, you expected about $300 million, and then in the fourth quarter, you anticipated about $225 million. If I am reading these slides right, I think it was over $400 million is still there in the third quarter. Can you just give us an updated number for the fourth quarter? Phil Angelastro: Sure. You are right, the number in Q3 coming from businesses that we had not disposed of, either as of 9/30 or we disposed of during the quarter, during the third quarter, came through at about $412 million, which is higher than our estimate. It is, as we have said before, quite difficult to estimate the timing of when these deals are going to close. We are certainly, we believe, on track for getting the vast majority, and we anticipate all of the transactions that we had anticipated disposing, the sales and dispositions done by the end of the year. It is possible, as I said in my prepared remarks, that could go into early 2027 when they actually officially close. Jason Bazinet: Sure. Phil Angelastro: We updated the estimate for the fourth quarter. At this point, we expect about $325 million of revenue from the deals that haven't been completed in Q4. Jason Bazinet: Great. Phil Angelastro: Again, it's difficult to know when to estimate when the deal's going to get signed. That is the update for Q4. John Wren: Probably the point we want to leave with you is that we submit substantially through that effort, and we're down to a handful of organizations that we're in the process of talking to potential buyers. Phil Angelastro: Yeah. We've got some bankers involved and certainly good progress at this point. But until they're done, they're not done. And we continue to push to get the deals done and we can't wait until they're completed. John Wren: Right. Phil Angelastro: We want to get back into acquisition mode. And we have been entertaining some discussions with potential targets that would help the future of the business and the future growth of the business. But the sooner we can get the dispositions behind us, the better. I think investors and analysts certainly would agree and that's what we endeavor to do. Jason Bazinet: No, that's great. Thank you. Phil Angelastro: Thank you. Operator: Your next question comes from the line of Steven Cahall from Wells Fargo. Your line is open. Please go ahead. Steven Cahall: Thank you. So kind of a two-parter. Was wondering if you could talk about the biggest sources of acceleration and growth. Just looking at percentage of revenue, it looks like it is probably in the integrated media division. I would love to know, is that driven by wins? Is that driven by expansion of businesses and just the complexity in the media world? Then, related, if we back some of the synergies out of the incremental EBITA you are seeing at core, it looks like the margin on revenue growth is pretty low. Is that because the media business is a little lower margin when you started off? Is that because you are reinvesting in more? Just help us kind of understand, ex synergies, what the margins are looking like on revenue growth. Thank you. John Wren: Okay. You want to take part of it? Phil Angelastro: Yeah. I will do the synergies part. I think similar to what I said previously, Steve, there is a bunch of factors that are contributing to the improvement in EBITA dollar growth and certainly, a key part of that is the revenue growth that we have achieved through the first 9 months. There is also, as I had said before, we are tracking to achieve the synergies that we expected to achieve to get the costs out of the business and we are certainly balancing the timing of when those synergies are being achieved and the timing of the investments that we are making in the underlying business, especially our technology platforms, including the Omni platform and our agentic AI capabilities that we have been investing in over the last, since the deal closed. We are very happy with all that progress. It's kind of accelerated in terms of us getting to where we need to get to sooner and quicker, and we believe we're in a much better place today than we were back in December when we closed the transaction. All that is in the impact of, or the drivers of what's impacting our increased EBITA growth, and we're certainly satisfied with 9 months of growth at 5.8% organic. EBITA dollar growth of $553 million, 210 basis points of EBIT on margin improvement, and 21% EPS growth. While I know everybody wants to do their mathematical calculations related to the $900 million, we're managing the business overall, and we're pleased with the overall results. John Wren: What I would add to that is we're very happy with the 200 basis point improvement in our EBIT, and we feel very encouraged to invest money over and above that improvement in our business and the ongoing efforts of what we're doing in platforms, and making us more attractive to potential clients. Not doing the math the same way you just might have suggested you're doing it, and I don't think that would help you get an accurate view going forward of what you can expect from us. We're going to hold those margins where they are now, or aspire to, and actually grow our business and our organic growth at the same time, while making some very significant investments, especially in our AI work and our platforms, which we think will contribute to our ongoing growth. I'm actually trying to explain what you can expect from us, which I think is all positive. It just doesn't follow that math. Steven Cahall: That's helpful. Is media the place that we're seeing that investment come through in growth? John Wren: Yes, I think so. The 2 areas that I point out for the quarter was the consistent growth in media, which has been true throughout the entire year, and we were benefited by the World Cup, and somewhat by the midterm elections in the third quarter, contributed to our overall reported organic growth. Next year, we won't have that, but next year, we'll be looking forward to the 2028 Olympics. It's a little hard to get too far in front of ourselves. Steven Cahall: Thank you. John Wren: You're welcome. Phil Angelastro: Thank you. Operator: Your next question comes from the line of Sean Diffley with Morgan Stanley. Your line is open. Please go ahead. Sean Diffley: Great. Thanks very much, team. I was hoping you could discuss pitch activity now, how aggressive the pitches are, any concessions on pricing we should be thinking about. Obviously, this Coke news would be helpful, but you've also spoken about some disappointment on the Pepsi loss. Just what is the pitch activity like? How aggressive are your competitors? Is the first question. Then the second, maybe this AWS deal, just talk about what exactly that looks like. Can that be incremental to numbers? What are you guys bringing to the table? Obviously, Amazon, a really good partner. Thanks so much. John Wren: Great. Phil Angelastro: Forgot your first question. John Wren: Oh, pitches. Sean Diffley: Price. John Wren: The pitch activity is about the same as it typically is, and it's pretty healthy, and we're winning more than our fair share. Not all the names are household names like Pepsi or Coke, but we're making real progress, and I think as we come to the end of the year and you see our results compared to our competitors, we're in a very positive place. I would say that there's more opportunity for business we're not defending as we look forward, where if winning it would be a net gain to our operating position. I think whatever accounts wanted to go into review, for the most part have in the first 9 months of this year. We've cleared that, and we're now looking to a brighter future in terms of pitch activity. Phil Angelastro: Certainly, the investments we spoke about earlier on the call are a big part of our actual win rate in pitches to date post this transaction, and we are quite comfortable that those are the right investments to make, that will only help us accelerate that good performance in pitches going forward. John Wren: If Paolo's with us, you might want to add to what investments we're making to the platform and what we're doing. Paolo Yuvienco: Sure. With respect to the AWS question, Sean, it absolutely is meant to drive joint growth for our partnership. As you know, we're a big AWS partner, and this is really leveraging our technology consulting capabilities and implementation skills to drive more cloud-based AI solutions that are AWS-centric. It is something that we've been doing already for many of our clients, but this is establishing a more dedicated unit that's going to focus on driving that growth. Sean Diffley: Thank you. Operator: Your next question comes from the line of Julien Roch with Barclays. Your line is open. Please go ahead. Julien Roch: Yes. Good evening, everybody. Thank you for taking my question, and congratulations on Coke North America. Phil, thank you very much, or Greg, for slide 33, which allows us to know core and disposition last year. On that slide, you are talking about $890 million of disposition revenue in Q4 last year, which gets you to $3.527 billion, but you just upgraded or increased the disposition to $3.6 billion. Will we get $73 million of disposition in 2027? That is my first question. The second question is, outside of the 2026 disposition running into 2027, can we expect no more disposition next year and the disappearance of core and disposition, and we get clean numbers? That is my second question. Then the third one is, using again slide 33, your core EBITA last year was $3.490 billion, so $3.5 billion. At the Barclays September Media and Telecom conference, Phil, you said that the way to think about 2026 EBITA should be 2025 plus the $75 million-$80 million of synergies, so about $4.2 billion. Is that still the right way to think about 2026 EBITA? Thank you. Phil Angelastro: All right. Stay on the line because I think I am going to need you to clarify a couple of things. There was an awful lot there, Julien. Julien Roch: Sure. Phil Angelastro: With respect to 2027 and 2027 in reporting when it comes to core and disposition, certainly the goal is for us not to need to continue to split the numbers in that way. We are confident we are going to get through the dispositions by the end of the year, as we said. Certainly, we are on track to do that, and we expect to do that by the end of the year or very early in January. We can put the core and dispositions and asset held for sale reporting behind us. That is certainly the goal. We will keep you updated if anything changes, but that is the expectation. As far as the reference to the $3.6 billion of annualized revenue. On the last call, the estimate we gave was 35-36, so we are at the higher end of that range. And I think if I understand you right, when you add up the dispositions and held for sale Q1 to Q4, which we now kind of laid out for 2025, that number is a little bit less than 3.6. That is just the timing of. Julien Roch: That is correct. Phil Angelastro: There were a couple of added dispositions in terms of the annual revenue so that people could get an idea of what the annual revenue was. The 36 and the 35 something does not mean there is going to be additional disposition revenue in 2027. It is just a timing issue. There were a couple businesses that we added in Q2 to the disposition list, which led to a difference in the annualized revenue from our first estimate. That really is not an important point. It is roughly a similar number and similar to the estimate we gave last time. We do not think anything changed in any material way. Then the third part of your question, I think you just need to walk me through again, so that I can respond to it. Julien Roch: Using page 33 again, the slide, we now calculate that core EBITA last year was $3,490. So let us call that $3.5 billion, right? So that is 2025 core EBITA of $3.5 billion. And at our September conference, you said that the way to think about 2026 EBITA would be to take 2025 EBITA plus 75%-80% of the synergies. So if I take 75% or 80% of the synergies added to that $3.5 billion, then you get about $4.2 billion of core EBITA for 2026. I wanted to know whether that was the right way to think about it still. Phil Angelastro: I think the answer is yes, but I will just add to that. When we look at the overall expectations for 2026 for the year, as we said earlier on the call, and as we have said previous to this, we have achieved about 200-210 basis points improvement over the prior year through 9 months. Pretty consistent through the quarters. And that is our expectation for the year, including the math on the synergies, including incremental contributions from the business itself and the growth, and including the investments we are making in our platforms and in our people and talent and everything else that is going on so that we can better prepare the company for sustained long-term growth. We are certainly satisfied with the progress to date. That is what we expect. I think if you just isolate the synergies in and of themselves, you get close to the number you just described. But the 210 basis points or so of margin improvement and EBITA growth in total is ultimately what we are focused on. That is going to be a number with a lot of different things in it. Timing impacts that. Investments impact that. Ultimately, I think the answer is yes to your question, but it is all in there. It is not just a simple static planning spreadsheet that we use. The operations have a lot of different moving parts, and that is what we ultimately expect the result to be. Julien Roch: That is very clear. 200-210 basis point of margin improvement. Thank you very much, Phil. Phil Angelastro: Thank you. John Wren: Thank you. Operator: Your next question comes from the line of Michael Nathanson with MoffettNathanson. Your line is open. Please go ahead. Michael Nathanson: Thanks. I just have a quick one for Phil Angelastro. Trying to understand the acquisition strategy year to date. Looks like you spent $303 million on page 20 on acquisitions. What type of acquisitions were those? In the revenue contribution line, you are showing a very small contribution from M&A. Help me understand, what are you buying and what is being reflected in the revenue contribution line, if that is possible? Phil Angelastro: Sure. I think I touched on this in the prepared remarks, but to expand on it a little bit. In the cash flow that is in the investor presentation, on that line, there are basically 3 things. One of them is traditional acquisitions. That number is very small, as I have said. It is just a small acquisition. Nothing really to speak of in terms of cash or even revenue and EBITA contribution. We do expect and have started to get back into acquisition mode, and we will get back into acquisition mode. The primary focus to date has been completing the dispositions. A very small traditional acquisition number. We have also got some earn-out payments that are in that number, as we always historically do. There are still a few outstanding earn-outs. Some of those payments that are on the acquisition line relate to earn-outs. In addition to that, probably the biggest component of the spend has been an increase in spend on acquiring minority interests, which is part of our integration plan from the beginning, because as we make some of the changes we have made globally, outside the U.S. especially, we have integrated operations. As part of that we bought out some minority interests so that we could merge and integrate the businesses and operate more efficiently market by market. Most of the spend in the acquisition category through 9 months relates to acquisitions of additional minority interests. That is certainly where the numbers are coming from. There really is not a lot of activity in terms of traditional M&A that is contributing to revenue and EBITA growth so far through the first 9 months. John Wren: Right. Probably the biggest number in there is we topped up our ownership of what was Interpublic's Middle East operations, where they owned 51%, we repurchased the other 49%. Phil Angelastro: Yeah. That was the single biggest spend number. Michael Nathanson: That's why the revenues don't change because you were consolidating it anyway, so it's just owning 100%. John Wren: Correct. Phil Angelastro: That's correct. John Wren: That's correct. Yeah. Phil Angelastro: Yeah. We would expect minority interest contribution to be reduced going forward, except to the extent that there are a few businesses that still have some minority ownership in them. If they grow, the minority interest expense will grow accordingly. Michael Nathanson: Okay. Thanks, guys. Phil Angelastro: Thank you. John Wren: You are welcome. Operator: Your next question comes from the line of Tim Nollen with SSR. Your line is open. Please go ahead. Tim Nollen: Hi. Thanks for taking the question. It's a question probably for you, John. Maybe Paolo could weigh in as well. It's a bigger picture question. Thinking of how clients have always leaned on the ad agency groups like Omnicom to manage complexity in the marketplace, and it's probably a more complex world than ever now. In this agentic AI era as the walled gardens and even some independent ad tech companies are building out end-to-end platforms, I'm just wondering how does a scaled hold co like Omnicom fit in? How is its role changing in this environment? You've referenced AI several times on this call. I'm just curious how you view your role in this much broader, more complex ad market is evolving. John Wren: Sure. I think we're central to it in terms of the platform that we're building out, in terms of the ease with both Omnicom employees and employees of the client can come together on a platform and execute certain statements of work and achievements. I will defer actually to Paolo, who is living those improvements every day. He's with us, so. Paolo Yuvienco: Yeah, so I think ultimately what we do is we orchestrate that complexity on behalf of our clients. What Omni are. Our platform, our marketing intelligence platform does, is perform that orchestration and helps facilitate the work that our people are actually delivering for our clients every day. When you think about agentic and why it becomes so important, because implementing these tasks through AI, through the lens of AI, and making sure that we're doing it in the most efficient and effective way, that is ultimately what we're doing to simplify the entire marketing life cycle. Tim Nollen: I guess it's fair to say, looking at your growth rates, you're seeing a lot of opportunity here. You're even seeing opportunities to gain share versus the opportunities that you used to have. Things are even changing to your benefit in the market. Is that fair? John Wren: That is fair. Our client base allows us to do that, and our resources and cash flow allow us to make those investments. Tim Nollen: Okay. Thank you. Operator: Your next question comes from the line of Craig Huber with Huber Research Partners. Your line is open. Please go ahead. Craig, your line is open. Please go ahead. Your next question. John Wren: Maybe we'll go to the next question operator. Operator: Yep. Your next question comes from the line of Adrien de Saint Hilaire from Bank of America. Your line is open. Please go ahead. Adrien de Saint Hilaire: Hello. Good evening, John, Phil, Greg. I've got a couple of questions, if you don't mind. First of all, John, can you perhaps talk about the recent changes that have taken place at some of your creative agencies? I think there were some changes at the Omnicom advertising group level, maybe also at the individual agency level. Would you expect that comes with any disruption perhaps? Then maybe secondly, just, sorry, Phil, to come back on that Q4 base that you gave us. I'm just a little confused because if we look at Q4 2024, it would seem like the base for the combined business was about $1.3 billion. I'm not quite sure how you get to 1161 as you indicate in that slide 33. Thank you. John Wren: Sure. In terms of the advertising agency changes in personnel, there has been some during the quarter for sure. One is Troy Ruhanen, who was running it, has elected for personal reasons to retire. We had in place Andrew Robertson, who had previously run BBDO and was currently the Chairman of BBDO, to take his place. It was a very well-executed handover, for an unexpected job opening. Yes, there was a little bit of change below that level in terms of people electing to leave. All of it's behind us. We digested it very easily. We're just moving forward at a very rapid pace with not losing a step of anything we had planned to do from the time we finished the planning for the combination of the companies. I say this everywhere, so I believe it to be true. There's no one key individual in this company that the company revolves solely around. Everybody is replaceable, and we anticipate and have succession plans for all of our key positions throughout the company. When something like that happens, we're able to react to it very smoothly, and that's what's occurred in the advertising group. Phil Angelastro: When we put together the I'll jump to the next, the second question. When we put together the combined numbers, at the time we didn't have combined numbers for Q4 to provide because the IPG transaction only closed on December 1, 2025. We didn't have a fourth quarter to present at that time. The next best thing was the fourth quarter of 2024, which at this point is kind of dated. It's 2 years ago. An awful lot has changed and did change, between Q4 of 2024 and now in Q4 of 2024 and Q4 of 2025. The numbers that are included in the back of the deck were to provide analysts and investors with some more appropriate set of numbers related to 2025. The 2025 numbers that are in there reflect the full year of Omnicom, which includes one month of IPG post closing date, so the month of December. It also includes the month of October and November from IPG's books and records, which at the time, they had closed the third quarter, and shortly thereafter we got approval to close the deal. That took us through the end of November, and it was kind of an uncertain time. Those are IPG's results. There was a lot of uncertainty and preparation for the transaction and the integration to begin on December 1. Year-on-year, they were a little bit different than the Q4 numbers. We think those Q4 2025 numbers that we included in the back of the deck, are more representative of the business performance for Q4. We wanted to get them out so that everybody had them in advance, rather than using them and providing them when we close the year in February of 2027. That is why we included them in the back. Adrien de Saint Hilaire: Yep. That is much appreciated, Phil. Thank you. Phil Angelastro: Sure. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Omnicom Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Omnicom Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Omnicom (OMC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Revenue: Core operations revenue just over $6 billion, up $407 million or 7.3%; organic revenue growth of 7.2% in Q3 2026. - Organic Growth (Year-to-Date): 5.8% for the nine months; full-year 2026 organic core revenue growth estimated at approximately 5%. - Adjusted EBITDA: Increased $191 million or 21.1% in Q3; year-to-date adjusted EBITDA up $553 million or 23%. - Adjusted EBITDA Margin: 18.2% in Q3, up 200 basis points year over year; year-to-date margin of 17.0%, up 210 basis points. - Adjusted Diluted EPS: $2.73 per share in Q3, up 22% from $2.24 per share last year. - Adjusted Net Income: Increased $315.8 million to $752.2 million. - Revenue by Discipline: Integrated media ~53% of revenue (growth over 10%); advertising 15.6% (down mid single-digits); health 9% (marginally negative); PR 11% (low single-digit growth); experiential and other 11% (strong double-digit growth, driven by FIFA World Cup). - Revenue by Region: US 60% of revenue (up 10%); UK and Europe 21% (UK negative low single-digit, rest of Europe mid single-digit growth); Asia Pacific 10% (mid single-digit growth); Latin America 4% (mid single-digit growth); other North America 3%; Middle East and Africa 2% (declined mid single-digits). - Net Interest Expense: Increased to $104 million from $43 million in 2025; expected just under $100 million in Q4 2026. - Depreciation & Amortization: Depreciation expense of $47 million and amortization expense of $120 million in the quarter. - Adjusted Tax Rate: 25% for the quarter, down from 26% in 2025; Q4 2026 estimated at approximately 26%. - Cost Reduction Synergies: On track to deliver $900 million in cost reduction synergies in 2026. - Share Repurchases: $3.2 billion completed under the $5 billion program; remainder to be completed by April 2027. - Dividends: Increased to $703.3 million for the first nine months. - Capital Expenditures: Grew year over year, at similar levels to combined historical results. - Proceeds from Assets Held for Sale: $413.9 million for the nine months. - Changes in Operating Capital: Negative $2.3 billion for the first nine months versus negative $1.4 billion prior year; positive $119 million in Q3. - Debt & Liquidity: Gross long-term debt of $10.2 billion; cash, equivalents, and short-term investments of $3.8 billion; undrawn $3.5 billion revolving credit facility; total leverage ratio of 2.3 times versus 2.7 times at September 30, 2025. - Dispositions and Held for Sale: Estimated annualized revenue of approximately $3.6 billion with prior-year adjusted EBITDA margin of approximately 11% to 12%; expected Q4 2026 revenue of approximately $325 million. - Warning! GuruFocus has detected 4 Warning Signs with OMC. - Is OMC fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Omnicom Group Inc (NYSE:OMC) achieved organic revenue growth of 7.2% in Q3 2026, with integrated media growing over 10%. - Core adjusted EBITDA margin expanded by 200 basis points to 18.2% in Q3, and year-to-date margin improved 210 basis points to 17.0%. - Adjusted EPS increased 22% to $2.73, driven by strong operational performance and synergy realization. - Omnicom Group Inc (NYSE:OMC) is on track to deliver $900 million in cost reduction synergies from the Interpublic acquisition in 2026. - The company won significant new business, including Novo Nordisk, US Bank, L'Oreal, CVS Health, and a major integrated assignment for the 2028 Olympic Games. - Advertising revenue declined in the mid-single digits in Q3 2026, reflecting ongoing challenges in the advertising discipline. - Health revenue was marginally negative in the quarter, indicating weakness in the healthcare segment. - The UK market experienced negative low-single-digit organic growth, and Middle East & Africa declined mid-single digits due to ongoing conflict. - Net interest expense increased to $104 million from $43 million, primarily due to debt assumed from Interpublic, impacting profitability. - Changes in operating capital were negative $2.3 billion for the first nine months, up from negative $1.4 billion, due to integration costs and Interpublic's operations. Q: With organic growth in media showing strong improvement versus pre-IPG levels, can Omnicom sustain these growth rates going forward? And how should we think about full-year core margins given Q4 seasonality and synergy realization? A: CEO John Wren stated that the connected capabilities offeringspanning media, CRM, and advertisingremains very strong in the marketplace and is expected to continue into 2027, though the company isn't forecasting specific organic growth for next year, it expects to remain a marketing leader in organic growth. CFO Phil Angelastro added that margins grew about 200 basis points in Q3 and 210 basis points year-to-date, and investors should expect something similar in Q4, with the full year landing in that zone. He noted limited visibility into Q4 project spend but expects it to be helpful. Q: How much of the $900 million in cost reduction synergies is already reflected in the nine-month 2026 numbers, and what is the progress on synergy realization? A: CFO Phil Angelastro said the company continues to track where expected and is on pace to achieve the $900 million in cost reduction synergies, with 75% to 85% expected to flow to the bottom line. He noted there are many moving parts in the business, but the company is on track through the first nine months with no reason to believe it won't achieve the goal by year-end. Additional synergy efforts for 2027 have been put in place, with timing being the key variable. Q: Can you provide an update on the revenue from assets held for sale in Q4 2026, given the Q3 number came in higher than expected at approximately $412 million? A: CFO Phil Angelastro confirmed Q3 revenue from held-for-sale businesses was about $412 million, higher than estimated, noting it's difficult to predict deal closing timing. He updated the Q4 estimate to approximately $325 million in revenue from deals not yet completed. CEO John Wren added that the company is substantially through the disposition effort and is down to a handful of organizations in discussions with potential buyers, with the goal of completing dispositions by end of 2026 or early 2027. Q: What are the biggest sources of acceleration and growth, particularly in integrated media, and how should we think about margins on revenue growth excluding synergies? A: CFO Phil Angelastro attributed EBITDA dollar growth to revenue growth achieved through the first nine months, synergy realization, and balancing the timing of investments in technology platforms including Omni and agentic AI capabilities. He emphasized the company is pleased with nine months of 5.8% organic growth, $553 million EBITDA dollar growth, 210 basis points of margin improvement, and 21% EPS growth. CEO John Wren added that the company is happy with the 200 basis point EBIT improvement and is investing above that level in platforms and AI to drive future growth, noting the simple synergy math doesn't capture the full picture. Q: Can you discuss current pitch activity, competitive aggressiveness, and any pricing concessions? Also, what does the AWS partnership entail and can it be incremental? A: CEO John Wren said pitch activity is about the same as typical and pretty healthy, with the company winning more than its fair share. He noted most accounts that wanted to go into review have done so in the first nine months, positioning for a brighter future in pitch activity. CFO Phil Angelastro added that investments in platforms and AI are a big part of the win rate in pitches post-transaction. CTO Paolo Yuvienco explained the AWS collaboration is meant to drive joint growth, leveraging Omnicom's technology consulting and implementation skills to drive cloud-based AI solutions that are AWS-centric through a dedicated unit. Q: Using the Q4 2025 core EBITDA base of approximately $3.5 billion, is the right way to think about 2026 core EBITDA to add 75% to 80% of synergies, getting to about $4.2 billion? A: CFO Phil Angelastro confirmed the answer is yes, but added context that the company has achieved about 200 to 210 basis points of margin improvement through nine months, which is the expectation for the full year. He noted this includes synergy math, incremental business contributions, growth, and investments in platforms, people, and talent. He emphasized the operations have many moving parts and timing impacts, but ultimately the 210 basis points of margin improvement and EBITDA growth is what the company is focused on. Q: What type of acquisitions were made year-to-date given the $303 million spent, and why is the M&A revenue contribution so small? A: CFO Phil Angelastro explained the acquisition spend consists of three components: very small traditional acquisitions, earn-out payments on previously completed acquisitions, and the largest componentacquiring minority interests as part of the integration plan. The biggest single item was buying out the remaining 49% of the former Interpublic Middle East operations. Since these businesses were already consolidated, revenues don't change. CEO John Wren confirmed the company expects to get back into acquisition mode once dispositions are complete. Q: How is Omnicom's role evolving in the agentic AI era as walled gardens and independent ad tech companies build end-to-end platforms? A: CEO John Wren said Omnicom is central to this evolution through the platform being built that brings Omnicom employees and client employees together to execute work. CTO Paolo Yuvienco elaborated that Omni, the marketing intelligence platform, orchestrates complexity on behalf of clients and simplifies the entire marketing lifecycle through AI. Wren confirmed the company is seeing opportunities to gain share versus competitors, supported by its client base, resources, and cash flow to make necessary investments. Q: Can you discuss the recent personnel changes at creative agencies and whether any disruption is expected? A: CEO John Wren acknowledged some personnel changes during the quarter, including Trevor Hannon's retirement for personal reasons, with Andrew Robinson (formerly of BBDO) taking his place in a well-executed handover. He noted some changes below that level with people electing to leave, but said all of it is behind the company and was digested easily. Wren emphasized there is no one key individual the company revolves around, and succession plans are in place for all key positions, allowing smooth transitions. Q: Regarding the Coke North America account win, can Omnicom keep both Coke and Pepsi creative work, or should we assume conflicts? A: CEO John Wren deferred comments on Coke to the client, stating For the complete transcript of the earnings call, please refer to the full earnings call transcript.

2026 Third Quarter - Core Operations: - Revenue of $6.0 billion, 7.2% organic growth - Non-GAAP Adjusted EBITA of $1.1 billion, 18.2% margin 2026 Third Quarter - Reported: - Revenue of $6.4 billion - Diluted earnings per share of $2.38; $2.73 Non-GAAP Adjusted, up 22% - Operating Income of $991.7 million; $1.1 billion Non-GAAP Adjusted EBITA, 17.6% margin NEW YORK, Oct. 22, 2026 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the quarter ended September 30, 2026. "As we approach the one-year anniversary of the Interpublic acquisition, we continue to deliver the expected benefits of the combination. We've strengthened our competitive position and are on track to deliver $900 million in cost-reduction synergies in 2026 resulting in stronger organic revenue growth, operating margins, and earnings per share," said John Wren, Chairman and Chief Executive Officer of Omnicom. "With our integration nearly complete and our portfolio of companies and operations streamlined, we're focused on high-demand services and are well positioned to pursue future growth. We'll continue investing in our people and agentic technology to drive measurable business outcomes for our clients." Third Quarter 2026 Results - Core Operations | | Three Months Ended September 30, $ in millions | | 2026 | | | 2025 | | Omnicom | | | Combined (OMC + IPG) | | 2026 Consolidated | Less: Dispositions & Held for Sale | Core Operations (Net of Dispositions & Held for Sale) | | | 2025Combined | Less: Dispositions & Held for Sale | Core Operations (Net of Dispositions & Held for Sale) | | | | | | | | | Revenue | | $ 6,422.8 | $ 412.1 | $ 6,010.7 | | | $ 6,531.1 | $ 927.8 | $ 5,603.3 Adjusted EBITA | | $ 1,130.1 | $ 33.9 | $ 1,096.2 | | | $ 1,046.1 | $ 141.0 | $ 905.1 Adj EBITA Margin | | 17.6 % | 8.2 % | 18.2 % | | | 16.0 % | 15.2 % | 16.2 % See notes on pages 2 and 12. Revenue from Core Operations Revenue from Core Operations in the third quarter of 2026 increased $407.4 million, or 7.3%, to $6.0 billion as compared to the third quarter of 2025, primarily due to organic growth of $400.8 million, or 7.2%, and an increase due to foreign currency translation of $3.4 million, or 0.1%. Revenue contribution by discipline as a percentage of revenue from Core Operations of $6.0 billion in the third quarter of 2026 was as follows: $3.2 billion, or 53.0%, for Integrated Media; $935.4 million, or 15.6%, for Advertising; $566.6 million, or 9.4%, for Health; $678.3 million, or 11.3%, for Public Relations; and $644.3 million, or 10.7%, for Experiential & Other. Revenue from dispositions and assets held for sale was $412.1 million. Revenue contribution by region as a percentage of revenue from Core Operations of $6.0 billion in the third quarter of 2026 was as follows: $3.6 billion, or 60.2%, for the United States; $721.1 million, or 12.0%, for Euro Markets & Other Europe; $555.7 million, or 9.2%, for the United Kingdom; $573.1 million, or 9.6%, for Asia Pacific; $226.8 million, or 3.8%, for Latin America; $145.7 million, or 2.4%, for the Middle East & Africa; and $168.6 million, or 2.8%, for Other North America. Adjusted EBITA from Core Operations Adjusted EBITA from Core Operations in the third quarter of 2026 increased $191.1 million, or 21.1%, to $1.1 billion as compared to the third quarter of 2025, and the related margin increased to 18.2% from 16.2%, primarily due to cost reduction synergies and organic revenue growth. For the third quarters of 2026 and 2025, Adjusted EBITA excluded repositioning costs, primarily related to real estate and other exit charges in connection with the acquisition of The Interpublic Group of Companies, Inc. ("IPG") and integration and acquisition-related costs of $125.1 million ($76.8 million after tax) and $99.4 million ($79.2 million after tax), respectively. For the third quarter of 2026, Adjusted EBITA from Core Operations excluded a $106.8 million gain on the disposition of a subsidiary. Core Operations Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding results of businesses that have been disposed of up to the date of disposition in 2026 and businesses classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG. Third Quarter 2026 Results - Reported $ in millions, except per share amounts | Three Months Ended September 30, | Reported 2026 | Non-GAAP Adjustments | Non-GAAP 2026 Adj. | | | Reported 2025 | Non-GAAP Adjustments | Non-GAAP 2025 Adj. Revenue | $ 6,422.8 | $ — | $ 6,422.8 | | | $ 4,037.1 | $ — | $ 4,037.1 Operating Income | 991.7 | 18.3 | 1,010.0 | | | 530.1 | 99.4 | 629.5 Operating Income Margin | 15.4 % | | 15.7 % | | | 13.1 % | | 15.6 % Net Income1 | 656.0 | 96.2 | 752.2 | | | 341.3 | 95.1 | 436.4 EPS - Diluted1 | $ 2.38 | | $ 2.73 | | | $ 1.75 | | $ 2.24 Non-GAAP Measures:1 | | | | | | | | EBITA | $ 1,111.8 | $ 18.3 | $ 1,130.1 | | | $ 551.6 | $ 99.4 | $ 651.0 EBITA Margin | 17.3 % | | 17.6 % | | | 13.7 % | | 16.1 % 1) See notes on page 12. Revenue Revenue in the third quarter of 2026 increased $2.4 billion to $6.4 billion as compared to the third quarter of 2025, primarily due to the acquisition of IPG, which closed on November 26, 2025, and constant currency revenue growth. Revenue in the third quarter of 2026 includes $412.1 million from dispositions and assets held for sale. Expenses Operating expenses increased $1.9 billion to $5.4 billion in the third quarter of 2026 compared to the third quarter of 2025, primarily due to the acquisition of IPG. Included in operating expenses in the third quarter of 2026 are $40.4 million of integration and transaction costs related to the acquisition of IPG, $84.7 million of repositioning costs, primarily related to real estate and other exit charges, and a $106.8 million gain on the disposition of a subsidiary. Salary and service costs increased $1.7 billion to $4.6 billion, primarily due to the IPG acquisition and constant currency revenue growth. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs, freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $1.1 billion to $2.9 billion, due to revenue growth and the acquisition of IPG. Third-party service costs increased $552.4 million to $1.5 billion, primarily due to growth in our Integrated Media discipline and the acquisition of IPG. Third-party incidental costs increased $24.3 million to $211.7 million, primarily due to revenue growth and the acquisition of IPG. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $176.6 million to $499.3 million, primarily due to the acquisition of IPG. SG&A expenses increased $37.4 million to $200.9 million, primarily due to the acquisition of IPG. Included in SG&A expenses in the third quarter of 2026 are $40.4 million of integration and transaction costs related to the acquisition of IPG, compared to $60.8 million in the third quarter of 2025. Operating Income Operating income increased $461.6 million to $991.7 million in the third quarter of 2026 compared to the third quarter of 2025, primarily as a result of revenue growth and the IPG acquisition, partially offset by costs primarily related to the integration of IPG. Interest Expense, net Net interest expense in the third quarter of 2026 increased $61.0 million to $104.2 million compared to the third quarter of 2025, primarily due to debt assumed as part of the IPG acquisition and the refinancing activities in the first quarter of 2026. Interest expense increased $72.4 million to $132.8 million. Interest income increased $11.4 million to $28.6 million. Income Taxes Our effective tax rate for the third quarter of 2026 was 24.3% compared to 27.2% for the third quarter of 2025. The 2026 effective tax rate included the impacts of favorable settlements of uncertain tax positions. The effective tax rates for 2025 reflect the impact of the lower tax benefit associated with integration costs, severance, and repositioning charges related to the acquisition of IPG. Excluding these items, our Non-GAAP adjusted effective tax rate for the third quarter of 2026 was 25.0% compared to 26.0% for the third quarter of 2025. Net Income – Omnicom Group Inc. and Diluted Net Income per Share Net Income - Omnicom Group Inc. for the third quarter of 2026 increased $314.7 million to $656.0 million compared to the third quarter of 2025. Weighted-average diluted shares outstanding for the third quarter of 2026 increased to 275.4 million from 194.9 million, primarily as a result of shares issued for the IPG acquisition, partially offset by net share repurchases, including shares purchased pursuant to the accelerated stock repurchase agreement. Diluted net income per share of $2.38 increased by $0.63 from $1.75 in the prior year period. Non-GAAP Adjusted Net Income per Share - Diluted for the third quarter of 2026 increased $0.49, or 21.9%, to $2.73 from $2.24. Non-GAAP Adjusted Net Income per Share - Diluted for the third quarters of 2026 and 2025 excluded $88.9 million and $15.9 million, respectively, of after-tax amortization expense. Non-GAAP Adjusted Net Income per Share - Diluted for the third quarter of 2026 also excluded $13.3 million of after-tax integration and transaction costs, $63.5 million of after-tax severance and repositioning costs, and a $69.5 million after-tax gain on the disposition of a subsidiary. In 2025, Non-GAAP Adjusted Net Income per Share - Diluted excluded $50.8 million of costs related to the acquisition of IPG and $28.4 million of after-tax severance and repositioning costs. We present Non-GAAP Adjusted Net Income per Share - Diluted to allow for comparability with the prior year period. EBITA EBITA increased $560.2 million to $1,111.8 million in the third quarter of 2026 compared to the third quarter of 2025. Adjusted EBITA increased $479.1 million, or 73.6%, to $1,130.1 million in the third quarter of 2026 compared to the third quarter of 2025, and the related margin increased to 17.6% from 16.1%. EBITA and Adjusted EBITA excluded amortization expense of $120.1 million and $21.5 million in the third quarters of 2026 and 2025, respectively. Adjusted EBITA in the third quarter of 2026 also excluded $40.4 million of costs related to the integration of IPG, severance and repositioning costs of $84.7 million, and a $106.8 million gain on the disposition of a subsidiary. Adjusted EBITA in the third quarter of 2025 also excluded $60.8 million of costs related to the acquisition of IPG and $38.6 million of severance and repositioning costs. Risks and Uncertainties Global economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions and disruptions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions and disruptions, reductions in client revenue, changes in client creditworthiness, and other developments. Definitions - Components of Revenue Change We use certain terms in describing the components of the change in revenue above. Core Operations: Revenue from Core Operations excludes businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG. Organic growth: calculated by subtracting the foreign exchange rate impact and the acquisition revenue from total revenue growth, which is equal to the current period revenue from Core Operations minus the prior period revenue from Core Operations. Foreign exchange rate impact on core operations: calculated by translating the current period's local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue. Percentage change: Calculated by dividing the individual component amount by the prior period Core Operations revenue base. Conference Call Omnicom will host a conference call to review its financial results on October 22, 2026 starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom's investor relations website, investor.omc.com, and a webcast replay will be made available after the call concludes. About Omnicom Omnicom (NYSE: OMC) is the world's leading marketing and sales company. Powered by Omni, its proprietary data and identity platform, Omnicom's Connected Capabilities unite the company's agency brands, talent, and domain expertise across media, commerce, consulting, precision marketing, advertising, production, health, public relations, branding, and experiential to address clients' most critical growth priorities. For more information, visit www.omc.com Non-GAAP Financial Measures We present financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP") and adjustments to the GAAP presentation ("Non-GAAP"), which we believe are meaningful for understanding our performance. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. We define EBITA as earnings before interest, taxes, and amortization, principally of acquired intangible assets and internally developed strategic platform assets, and EBITA margin is defined as EBITA divided by revenue. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc., Adjusted Net Income per share – Omnicom Group Inc. - Diluted, and organic growth as additional operating performance measures. For 2025, we also used Combined Adjusted EBITA, which was calculated using the combined adjusted EBITA of Omnicom and IPG. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies. Forward-Looking Statements Certain statements in this document contain forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In addition, from time to time, we or our representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of management as well as assumptions made by, and information currently available to management. Forward-looking statements may be accompanied by words such as "aim", "anticipate", "believe", "plan", "could", "should", "would", "estimate", "expect", "forecast", "future", "guidance", "intend", "may", "will", "possible", "potential", "predict", "project" or similar words, phrases, or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside of our control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include: - risks relating to the completed merger (the "Merger") between us and IPG, including risks related to the integration of IPG's business, such as, among others: uncertainties associated with retaining key management and other employees; potential disruptions to client, vendor, and business partner relationships; the risk that integration activities may be more time-consuming, complex, or costly than expected; the possibility that anticipated synergies, efficiencies, and other benefits of the Merger may not be realized, or may be realized more slowly than anticipated; and risks associated with managing a larger, more complex combined organization and effectively integrating systems, processes, operations, and cultures; - adverse economic conditions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets; - international, national, or local economic conditions that could adversely affect us or our clients; - reductions in client spending, a slowdown in client payments or a deterioration or disruption in the credit markets; - the ability to attract new clients and retain existing clients in the manner anticipated; - changes in client marketing and communications services requirements; - failure to manage potential conflicts of interest between or among clients; - unanticipated changes related to competitive factors in the marketing and communications services industries; - unanticipated changes to, or an inability to hire and retain, key personnel; - currency exchange rate fluctuations; - reliance on information technology systems and risks related to cybersecurity incidents; - effective management of the risks, challenges, and efficiencies presented by utilizing artificial intelligence, or AI, technologies and related partnerships in our business, and their use by our competitors; - failure to adapt to technological developments; - our liquidity, long-term financing needs, credit ratings, and access to capital markets; - changes in legislation or governmental regulations affecting us or our clients; - losses on media purchases and production costs incurred on behalf of clients; - risks associated with assumptions we make in connection with our acquisitions, critical accounting estimates, and legal proceedings; - our international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and an evolving regulatory environment in high-growth markets and developing countries; - risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives; - changes in tax rates, tax laws, regulations or interpretations, or adverse outcomes of tax audits or proceedings; and - other business, financial, operational and legal risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those described in Item 1A., "Risk Factors" and Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations", in our Annual Report on Form 10-K, in this document and in other documents filed from time to time with the SEC. Except as required under applicable law, we do not assume any obligation to update these forward-looking statements. OMNICOM GROUP INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In millions, except per share amounts) | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 Revenue | | $ 6,422.8 | | $ 4,037.1 | | $ 19,228.2 | | $ 11,743.1 Operating Expenses: | | | | | | | | Salary and service costs | | 4,586.4 | | 2,921.5 | | 13,939.3 | | 8,600.4 Occupancy and other costs | | 499.3 | | 322.7 | | 1,531.0 | | 963.2 Severance and repositioning costs1 | | 84.7 | | 38.6 | | 135.8 | | 127.4 Net (gain) loss on assets held for sale and dispositions1 | | (106.8) | | — | | (72.5) | | — Cost of services | | 5,063.6 | | 3,282.8 | | 15,533.6 | | 9,691.0 Selling, general and administrative expenses1 | | 200.9 | | 163.5 | | 634.4 | | 451.8 Depreciation and amortization | | 166.6 | | 60.7 | | 499.8 | | 178.4 Total Operating Expenses1 | | 5,431.1 | | 3,507.0 | | 16,667.8 | | 10,321.2 Operating Income | | 991.7 | | 530.1 | | 2,560.4 | | 1,421.9 Interest Expense | | 132.8 | | 60.4 | | 375.0 | | 182.1 Interest Income | | 28.6 | | 17.2 | | 105.5 | | 68.8 Income Before Income Taxes and Income (Loss) From Equity Method Investments | | 887.5 | | 486.9 | | 2,290.9 | | 1,308.6 Income Tax Expense1 | | 215.4 | | 132.3 | | 594.8 | | 373.5 Income (Loss) From Equity Method Investments | | 2.5 | | 5.8 | | 2.7 | | 6.5 Net Income1 | | 674.6 | | 360.4 | | 1,698.8 | | 941.6 Net Income Attributed To Noncontrolling Interests | | 18.6 | | 19.1 | | 52.8 | | 55.0 Net Income - Omnicom Group Inc.1 | | $ 656.0 | | $ 341.3 | | $ 1,646.0 | | $ 886.6 Net Income Per Share - Omnicom Group Inc.:1 | | | | | | | | Basic | | $ 2.39 | | $ 1.76 | | $ 5.80 | | $ 4.54 Diluted | | $ 2.38 | | $ 1.75 | | $ 5.77 | | $ 4.51 | | | | | | | | Dividends Declared Per Common Share | | $ 0.80 | | $ 0.70 | | $ 2.40 | | $ 2.10 | | | | | | | | | | | | | | | | Operating Income Margin | | 15.4 % | | 13.1 % | | 13.3 % | | 12.1 % | | | | | | | | Non-GAAP Measures:4 | | | | | | | | EBITA2 | | $ 1,111.8 | | $ 551.6 | | $ 2,915.6 | | $ 1,485.0 EBITA Margin2 | | 17.3 % | | 13.7 % | | 15.2 % | | 12.6 % EBITA - Adjusted1,2 | | $ 1,130.1 | | $ 651.0 | | $ 3,118.8 | | $ 1,773.0 EBITA Margin - Adjusted1,2 | | 17.6 % | | 16.1 % | | 16.2 % | | 15.1 % Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3 | | $ 2.73 | | $ 2.24 | | $ 7.25 | | $ 5.98 | 1) | See Note 3 on page 12. 2) | See Note 4 on page 12 for the definition of EBITA. 3) | Adjusted Net Income per Share - Diluted for the three and nine months ended September 30, 2026 and 2025 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax (gain) loss on disposition of subsidiaries and after-tax integration and acquisition costs related to the acquisition of IPG. We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods. 4) | See Non-GAAP reconciliations starting on page 9. OMNICOM GROUP INC. AND SUBSIDIARIESDETAIL OF OPERATING EXPENSES(Unaudited)(In millions) | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Revenue | $ 6,422.8 | | $ 4,037.1 | | $ 19,228.2 | | $ 11,743.1 Operating Expenses: | | | | | | | Salary and service costs: | | | | | | | Salary and related costs | 2,866.7 | | 1,778.5 | | 8,894.9 | | 5,386.8 Third-party service costs1 | 1,508.0 | | 955.6 | | 4,396.1 | | 2,670.8 Third-party incidental costs2 | 211.7 | | 187.4 | | 648.3 | | 542.8 Total salary and service costs | 4,586.4 | | 2,921.5 | | 13,939.3 | | 8,600.4 Occupancy and other costs | 499.3 | | 322.7 | | 1,531.0 | | 963.2 Severance and repositioning costs3 | 84.7 | | 38.6 | | 135.8 | | 127.4 Net (gain) loss on assets held for sale and dispositions3 | (106.8) | | — | | (72.5) | | — Cost of services | 5,063.6 | | 3,282.8 | | 15,533.6 | | 9,691.0 Selling, general and administrative expenses3 | 200.9 | | 163.5 | | 634.4 | | 451.8 Depreciation and amortization | 166.6 | | 60.7 | | 499.8 | | 178.4 Total operating expenses3 | 5,431.1 | | 3,507.0 | | 16,667.8 | | 10,321.2 Operating Income | $ 991.7 | | $ 530.1 | | $ 2,560.4 | | $ 1,421.9 | 1) | Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. 2) | Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs, which we bill back to the client directly at our cost and which we are required to include in revenue. 3) | See Note 3 on page 12. OMNICOM GROUP INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Unaudited)(In millions) | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Net Income - Omnicom Group Inc. | $ 656.0 | | $ 341.3 | | $ 1,646.0 | | $ 886.6 Net Income Attributed To Noncontrolling Interests | 18.6 | | 19.1 | | 52.8 | | 55.0 Net Income | 674.6 | | 360.4 | | 1,698.8 | | 941.6 Income (Loss) From Equity Method Investments | 2.5 | | 5.8 | | 2.7 | | 6.5 Income Tax Expense | 215.4 | | 132.3 | | 594.8 | | 373.5 Income Before Income Taxes and Income (Loss) From Equity Method Investments | 887.5 | | 486.9 | | 2,290.9 | | 1,308.6 Interest Expense | 132.8 | | 60.4 | | 375.0 | | 182.1 Interest Income | 28.6 | | 17.2 | | 105.5 | | 68.8 Operating Income | 991.7 | | 530.1 | | 2,560.4 | | 1,421.9 Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1 | 120.1 | | 21.5 | | 355.2 | | 63.1 Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 | $ 1,111.8 | | $ 551.6 | | $ 2,915.6 | | $ 1,485.0 | | | | | | | Depreciation and other | 46.5 | | 39.2 | | 144.6 | | 115.3 EBITDA | $ 1,158.3 | | $ 590.8 | | $ 3,060.2 | | $ 1,600.3 | | | | | | | EBITA1 | $ 1,111.8 | | $ 551.6 | | $ 2,915.6 | | $ 1,485.0 Severance and repositioning costs2 | 84.7 | | 38.6 | | 135.8 | | 127.4 Net (gain) loss on assets held for sale and dispositions2 | (106.8) | | — | | (72.5) | | — Integration and acquisition related costs2 | 40.4 | | 60.8 | | 139.9 | | 160.6 EBITA - Adjusted1,2 | $ 1,130.1 | | $ 651.0 | | $ 3,118.8 | | $ 1,773.0 | | | | | | | Revenue | $ 6,422.8 | | $ 4,037.1 | | $ 19,228.2 | | $ 11,743.1 | | | | | | | Non-GAAP Measures: | | | | | | | EBITA1 | $ 1,111.8 | | $ 551.6 | | $ 2,915.6 | | $ 1,485.0 EBITA Margin1 | 17.3 % | | 13.7 % | | 15.2 % | | 12.6 % EBITA - Adjusted1,2 | $ 1,130.1 | | $ 651.0 | | $ 3,118.8 | | $ 1,773.0 EBITA Margin - Adjusted1,2 | 17.6 % | | 16.1 % | | 16.2 % | | 15.1 % 1) See Note 4 on page 12. 2) See Note 3 on page 12. The above table reconciles the Non-GAAP financial measures of EBITDA, EBITA, EBITA - Adjusted, EBITA Margin and EBITA Margin-Adjusted to the GAAP financial measure of Net Income-Omnicom Group Inc. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITDA, EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year. OMNICOM GROUP INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES - Combined(Unaudited)(In millions) | Three Months Ended September 30, 2025 | | Nine Months Ended September 30, 2025 | OMC | | IPG | | COMBINED | | OMC | | IPG | | COMBINED Net Income - Omnicom Group Inc. | $ 341.3 | | $ 124.2 | | $ 465.5 | | $ 886.6 | | $ 201.3 | | $ 1,087.9 Net Income Attributed To Noncontrolling Interests | 19.1 | | 2.9 | | 22.0 | | 55.0 | | 4.1 | | 59.1 Net Income | 360.4 | | 127.1 | | 487.5 | | 941.6 | | 205.4 | | 1,147.0 Income (Loss) From Equity Method Investments | 5.8 | | (2.9) | | 2.9 | | 6.5 | | (2.8) | | 3.7 Income Tax Expense | 132.3 | | 58.7 | | 191.0 | | 373.5 | | 104.1 | | 477.6 Income Before Income Taxes and Income (Loss) From Equity Method Investments | 486.9 | | 188.7 | | 675.6 | | 1,308.6 | | 312.3 | | 1,620.9 Interest Expense | 60.4 | | 48.9 | | 109.3 | | 182.1 | | 149.5 | | 331.6 Interest Income | 17.2 | | 24.3 | | 41.5 | | 68.8 | | 85.1 | | 153.9 Other Expense, Net | — | | 5.7 | | 5.7 | | — | | 44.0 | | 44.0 Operating Income | 530.1 | | 219.0 | | 749.1 | | 1,421.9 | | 420.7 | | 1,842.6 Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1 | 21.5 | | 23.8 | | 45.3 | | 63.1 | | 65.3 | | 128.4 Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 | $ 551.6 | | $ 242.8 | | $ 794.4 | | $ 1,485.0 | | $ 486.0 | | $ 1,971.0 | | | | | | | | | | | EBITA1 | $ 551.6 | | $ 242.8 | | $ 794.4 | | $ 1,485.0 | | $ 486.0 | | $ 1,971.0 Severance and repositioning costs2 | 38.6 | | 129.5 | | 168.1 | | 127.4 | | 450.8 | | 578.2 Acquisition related costs2 | 60.8 | | 22.8 | | 83.6 | | 160.6 | | 38.5 | | 199.1 EBITA - Adjusted1,2 | $ 651.0 | | $ 395.1 | | $ 1,046.1 | | $ 1,773.0 | | $ 975.3 | | $ 2,748.3 | | | | | | | | | | | Revenue | $ 4,037.1 | | $ 2,494.0 | | $ 6,531.1 | | $ 11,743.1 | | $ 7,353.4 | | $ 19,096.5 | | | | | | | | | | | Non-GAAP Measures: | | | | | | | | | | | EBITA Margin - Adjusted1,2 | | | | | 16.0 % | | | | | | 14.4 % 1) See Note 4 on page 12. 2) See Note 3 on page 12. The above table reconciles the Non-GAAP financial measures of EBITA, EBITA - Adjusted, EBITA Margin and EBITA Margin-Adjusted to the GAAP financial measure of Net Income-Omnicom Group Inc. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense principally from acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year. OMNICOM GROUP INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Unaudited)(In millions) | Three Months Ended September 30, | Reported 2026 | | Non- GAAP Adj. (1) | | Non- GAAP 2026 Adj. | | | Reported 2025 | | Non- GAAP Adj. (1) | | Non- GAAP 2025 Adj. Revenue | $ 6,422.8 | | $ — | | $ 6,422.8 | | | $ 4,037.1 | | $ — | | $ 4,037.1 | | | | | | | | | | | | Operating Expenses1 | 5,431.1 | | (18.3) | | 5,412.8 | | | 3,507.0 | | (99.4) | | 3,407.6 Operating Income | 991.7 | | 18.3 | | 1,010.0 | | | 530.1 | | 99.4 | | 629.5 Operating Income Margin | 15.4 % | | | | 15.7 % | | | 13.1 % | | | | 15.6 % | Nine Months Ended September 30, | Reported 2026 | | Non- GAAP Adj. (1) | | Non- GAAP 2026 Adj. | | | Reported 2025 | | Non- GAAP Adj. (1) | | Non- GAAP 2025 Adj. Revenue | $ 19,228.2 | | $ — | | $ 19,228.2 | | | $ 11,743.1 | | $ — | | $ 11,743.1 | | | | | | | | | | | | Operating Expenses1 | 16,667.8 | | (203.2) | | 16,464.6 | | | 10,321.2 | | (288.0) | | 10,033.2 Operating Income | 2,560.4 | | 203.2 | | 2,763.6 | | | 1,421.9 | | 288.0 | | 1,709.9 Operating Income Margin | 13.3 % | | | | 14.4 % | | | 12.1 % | | | | 14.6 % | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 | Net Income | Net Income per Share- Diluted | | Net Income | Net Income per Share- Diluted | | Net Income | Net Income per Share- Diluted | | Net Income | Net Income per Share- Diluted Net Income - Omnicom Group Inc. - Reported | $ 656.0 | $ 2.38 | | $ 341.3 | $ 1.75 | | $ 1,646.0 | $ 5.77 | | $ 886.6 | $ 4.51 Severance and repositioning costs (after-tax)2 | 63.5 | 0.23 | | 28.4 | 0.15 | | 101.8 | 0.36 | | 95.7 | 0.49 Net (gain) loss on assets held for sale and dispositions1 | (69.5) | (0.25) | | — | — | | (41.7) | (0.15) | | — | — Integration and acquisition related costs (after-tax)1,2 | 13.3 | 0.05 | | 50.8 | 0.26 | | 98.1 | 0.34 | | 145.0 | 0.74 Amortization expense (after-tax)2 | 88.9 | 0.32 | | 15.9 | 0.08 | | 262.9 | 0.93 | | 46.7 | 0.24 Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3 | $ 752.2 | $ 2.73 | | $ 436.4 | $ 2.24 | | $ 2,067.1 | $ 7.25 | | $ 1,174.0 | $ 5.98 | 1) | See Note 3 on page 12. 2) | Adjusted Net Income per Share - Diluted for the three and nine months ended September 30, 2026 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax loss on disposition of subsidiaries and after-tax integration costs related to the acquisition of IPG. We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods. Adjusted Net Income per Share - Diluted for the three and nine months ended September 30, 2025 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, and after-tax integration costs related to the acquisition of IPG. 3) | Weighted-average diluted shares for the three months ended September 30, 2026 and 2025 were 275.4 million and 194.9 million, respectively. Weighted-average diluted shares for the nine months ended September 30, 2026 and 2025 were 285.2 million and 196.4 million, respectively. The above tables reconcile the Non-GAAP financial measures of Non-GAAP Operating Income - Adjusted, Non-GAAP Net Income-Omnicom Group Inc. - Adjusted and Non-GAAP Adjusted Net Income per Share - Diluted to the GAAP financial measures of Operating Income, Net Income - Omnicom Group Inc. and Net Income per Share - Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year. NOTES: | 1) | Net Income and Net Income per Share for Omnicom Group Inc. 2) | See Non-GAAP reconciliations starting on page 9. 3) | For the three months ended September 30, 2026, operating expenses included $84.7 million ($63.5 million after-tax) of repositioning costs, primarily related to real estate and other exit charges, in connection with the Merger. For the nine months ended September 30, 2026, operating expenses included $135.8 million ($101.8 million after-tax) of repositioning costs, primarily related to real estate and other exit charges, as well as severance charges, in connection with the Merger. For the three and nine months ended September 30, 2026, operating expenses included $106.8 million ($69.5 million after-tax) and $72.5 million ($41.7 million after-tax), respectively, of net gains on dispositions of certain businesses in connection with the Merger. In addition, included in selling, general and administrative expenses for the three and nine months ended September 30, 2026, are integration related costs of $40.4 million ($13.3 million after-tax) and $139.9 million ($98.1 million after-tax), respectively, related to the Merger. The net impact of these items reduced operating income for the three and nine months ended September 30, 2026, by $18.3 million ($7.3 million after-tax) and $203.2 million ($158.2 million after-tax), respectively, which reduced diluted net income per share - Omnicom Group Inc. by $0.03 and $0.55, respectively. | For the three and nine months ended September 30, 2025, operating expenses included $38.6 million ($28.4 million after-tax) of repositioning costs, primarily related to severance actions as we prepared to integrate IPG. For the nine months ended September 30, 2025, operating expenses included $127.4 million ($95.7 million after-tax) of repositioning costs, related to severance actions as we prepared for the acquisition of IPG, as well as efficiency initiatives in the second quarter of 2025, primarily within the Omnicom Advertising and Omnicom Production. In addition, included in selling, general and administrative expenses for the three and nine months ended September 30, 2025, are acquisition related costs of $60.8 million ($50.8 million after-tax) and $160.6 million ($145.0 million after-tax), respectively, related to the Merger. The net impact of these items reduced operating income for the three and nine months ended September 30, 2025 by $99.4 million ($79.2 million after-tax) and $288.0 million ($240.7 million after-tax), respectively, which reduced diluted net income per share - Omnicom Group Inc. by $0.41 and $1.23, respectively. 4) | We define EBITA as earnings before interest, taxes and amortization, principally of acquired intangible assets and internally developed strategic platform assets. 5) | Combined (OMC + IPG) represents combined results from Omnicom and IPG as previously reported on a separate company basis during the prior year period. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG. These amounts are the arithmetic sum of each company's historical reported results, sourced from either Omnicom's Form 8-K filed on October 21, 2025 or IPG's Form 10-Q filed on November 10, 2025, and have not been prepared in accordance with Article 11 of Regulation S-X, do not reflect any pro forma adjustments, and are not necessarily indicative of the results that would have been achieved had the Merger been completed at the beginning of the periods presented. Any pro forma adjustments in conformity with Article 11 would not be material to the combined amounts presented. 6) | Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding businesses that have been disposed of or are classified as held for sale. Dispositions and held for sale, includes 2025 pre acquisition results for all businesses designated as assets held for sale and includes 2026 results for all business designated as held for sale for which the dispositions have not yet been completed, and for completed dispositions for the portion of the period prior to their disposition date. View original content:https://www.prnewswire.com/news-releases/omnicom-reports-third-quarter-2026-results-302917375.html

Omnicom (OMC) came out with quarterly earnings of $2.73 per share, beating the Zacks Consensus Estimate of $2.68 per share. This compares to earnings of $2.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.87%. A quarter ago, it was expected that this advertising company would post earnings of $2.64 per share when it actually produced earnings of $2.65, delivering a surprise of +0.38%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Omnicom, which belongs to the Zacks Advertising and Marketing industry, posted revenues of $6.42 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 4.48%. This compares to year-ago revenues of $4.04 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Omnicom shares have lost about 0.3% since the beginning of the year versus the S&P 500's gain of 13.3%. While Omnicom has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Omnicom was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.31 on $6.82 billion in revenues for the coming quarter and $10.50 on $25.84 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Advertising and Marketing is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Stagwell (STGW), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29. This marketing communications company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +29.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stagwell's revenues are expected to be $817.7 million, up 10.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC) : Free Stock Analysis Report Stagwell Inc. (STGW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Omnicom Group Inc.? Here are five stocks we like better. - Strong third-quarter performance: Omnicom reported 7.2% organic core revenue growth, an 18.2% adjusted EBITA margin, and adjusted diluted EPS of $2.73, up 22% year over year. - Interpublic integration remains on track: The company expects to deliver $900 million in 2026 cost synergies, with most savings flowing to earnings while it continues investing in talent, technology, and AI platforms. - Growth outlook and capital returns: Omnicom now expects approximately 5% full-year organic core revenue growth and had repurchased $3.2 billion of stock through September, while elevated debt-related interest costs reflect the Interpublic acquisition. - High Yield Revival: 3 Cash-Rich Dividend Payers on Sale Omnicom Group (NYSE:OMC) reported third-quarter 2026 organic revenue growth of 7.2% from its core operations, excluding businesses sold or held for sale, as the advertising and marketing services company continued to integrate Interpublic and realize cost-reduction synergies. Chairman and Chief Executive Officer John Wren said Omnicom's core adjusted EBITA margin reached 18.2% during the quarter, up 200 basis points from a year earlier. For the first nine months of 2026, organic growth was 5.8% and the core adjusted EBITA margin was 17.0%, up 210 basis points from the comparable 2025 period. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over Adjusted diluted earnings per share rose 22% year over year to $2.73. Chief Financial Officer Phil Angelastro said adjusted net income increased $315.8 million to $752.2 million. Wren said the company was approaching the one-year anniversary of the Interpublic acquisition and was realizing the anticipated benefits of the combination. Omnicom remains on track to deliver $900 million in cost-reduction synergies during 2026, he said, while reinvesting in talent, technology, operations and its platforms. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? Angelastro said the company expects 75% to 85% of the targeted synergy savings to flow to the bottom line during the year. He said Omnicom is also investing in technology platforms, including its Omni marketing intelligence platform and agentic artificial intelligence capabilities. "We're managing the business overall, and we're pleased with the overall results," Angelastro said in response to questions about the relationship between synergies, investments and margin expansion. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price The company said its integration and outsourcing work in real estate and back-office operations is substantially complete, while planned personnel actions are mostly behind it. Omnicom is continuing to recruit in high-growth areas and train employees in Omni and AI, Wren said. Omnicom also said it has made major progress selling operations considered noncore to its future strategy. The company expects to complete the remaining dispositions in the near future, although some closing processes could extend into early 2027. Businesses held for sale are expected to generate approximately $325 million in fourth-quarter 2026 revenue. Core operations produced just over $6 billion in third-quarter revenue. Foreign exchange had a positive 0.1% impact on revenue growth, while small acquisitions contributed a nominal amount. Integrated media, which includes media, commerce, data, CRM, consulting and content automation, accounted for about 53% of quarterly revenue and posted organic growth of more than 10%. Wren said Omnicom's connected capabilities across media, CRM and advertising continued to be a strong offering in the marketplace. Experiential and other revenue also grew at a strong double-digit rate, driven by FIFA World Cup-related activity. However, Angelastro said the company does not expect growth in that discipline in the fourth quarter. Health revenue was marginally negative, advertising declined in the mid-single digits but improved from the first half, and public relations grew at a low-single-digit rate. By geography, the U.S. represented 60% of revenue and grew 10% organically in the quarter. The U.K. declined at a low-single-digit rate, while the rest of Europe, Asia-Pacific and Latin America each grew at mid-single-digit rates. Middle East and Africa revenue declined at a mid-single-digit rate, which Angelastro attributed to the ongoing conflict in the region. For the full year, Omnicom now expects approximately 5% organic core revenue growth. Angelastro characterized the outlook as conservative, noting that fourth-quarter project spending remains difficult to forecast. Wren said clients historically may release remaining marketing budgets late in the year, though the company does not include such potential spending in its estimates. Wren said Omnicom won new assignments from Novo Nordisk, U.S. Bank, L'Oréal and CVS Health. It also extended its Mercedes-Benz contract through the end of 2029, covering media, creative, social media, events and marketing activations, and public relations. In sports marketing, Omnicom said it secured an integrated assignment connected to the 2028 Olympic Games in Los Angeles, spanning sponsorships, creative and communications. The company said it manages $9.9 billion in sponsorships and talent and oversees one-third of global sports media investments. The company declined to comment on reports concerning a potential Coca-Cola North America account award, with Wren saying Omnicom would defer to the client. He said that any business from Coca-Cola would be incremental to Omnicom's existing revenue and relationships. Omnicom also announced a five-year strategic collaboration agreement with Amazon Web Services. Executive Vice President and Chief Technology Officer Paolo Yuvienco said the arrangement is intended to support joint growth by combining Omnicom's technology consulting and implementation capabilities with AWS-centric cloud and AI solutions. Wren said pitch activity remained healthy and Omnicom was winning more than its fair share of opportunities. He added that the company sees more opportunities involving business it is not defending, which could represent net new business. Omnicom repurchased $3.2 billion of stock during the first nine months of 2026 under its $5 billion share repurchase plan. The company expects to make additional repurchases during the fourth quarter and complete the program by April 2027. At Sept. 30, Omnicom had $10.2 billion of gross long-term debt and $3.8 billion of cash equivalents and short-term investments. The company also had an undrawn $3.5 billion revolving credit facility supporting a $3 billion commercial paper program. Net interest expense increased to $104 million in the third quarter from $43 million a year earlier, primarily reflecting approximately $3 billion of Interpublic debt assumed in the acquisition, as well as refinancing and commercial paper borrowings. Omnicom expects net interest expense of just under $100 million in the fourth quarter. Angelastro said the company's total leverage ratio, adjusted on a pro forma basis for the acquisition, was 2.3 times at the end of the quarter, compared with 2.7 times a year earlier. Omnicom said it was in compliance with the leverage covenant in its credit facility. Omnicom Group Inc is a global marketing and communications company that provides advertising, media, branding, public relations, customer relationship management, and digital marketing services. The company works with organizations across industries to develop brand strategies, create content, manage media campaigns, and engage customers through traditional and digital channels. Omnicom operates through a network of independently branded agencies, including BBDO Worldwide, DDB Worldwide, TBWA Worldwide, Omnicom Media Group, FleishmanHillard, Ketchum, Porter Novelli, RAPP, and several specialized healthcare, experiential, and data-driven marketing agencies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Omnicom Group Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

The market expects Omnicom (OMC) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This advertising company is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +19.6%. Revenues are expected to be $6.15 billion, up 52.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.58% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Omnicom, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.75%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Omnicom will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Omnicom would post earnings of $2.64 per share when it actually produced earnings of $2.65, delivering a surprise of +0.38%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Omnicom doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicom Group Inc. (OMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research