OMC

A month has gone by since the last earnings report for Omnicom (OMC). Shares have added about 6.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Omnicom due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Omnicom Group Inc. before we dive into how investors and analysts have reacted as of late. Omnicom reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. OMC’s adjusted earnings of $2.65 per share topped the Zacks Consensus Estimate by 0.4% and increased 29.3% from the year-ago quarter. Revenues of $6.56 billion surpassed the consensus estimate by 0.8% and rose 63.3% year over year. The sharp rise in revenues reflects the contribution from the Interpublic Group acquisition. Core Operations delivered 6.1% organic growth, led by Integrated Media and Experiential businesses. Core Operations revenues increased 7.2% year over year to $6 billion. Organic growth contributed $339 million, while favorable foreign-currency translation added $61.7 million. Core Operations exclude businesses already divested or classified as held for sale. Management attributed the performance to expanding services for existing clients and winning new business. Omnicom added work in sports, media, production, commerce, social and influencer marketing for clients including American Express, General Mills and Uber. New integrated media wins included Adidas, IBM and Subway. Integrated Media generated $3.15 billion, representing 52.5% of Core Operations revenues. The discipline recorded organic growth of slightly more than 10%, supported by demand for media, commerce, data, customer relationship management and consulting services. Advertising revenues were $942.6 million, or 15.7% of the total and declined by high single digits organically. Management linked the weakness partly to internal restructuring, brand realignment and the disposal of smaller, slower-growing operations. Public Relations contributed $679.1 million, accounting for 11.3% of Core Operations revenues, with mid-single-digit organic growth. Experiential & Other produced $669.2 million, or 11.2%, and grew more than 10% organically, aided by activity related to the FIFA World Cup. Health revenues were $555.9 million, representing 9.3% of the total and remaining flat organically. The varied performance highlights Omnicom's reliance on Integrated Media and Experiential operations to offset softness in Advertising. The United States generated $3.54 billion, or 59% of Core Operations revenues, and recorded high-single-digit organic growth. Latin America contributed $227.9 million and expanded more than 10%, making it a notable regional growth driver. Euro Markets and Other Europe produced $826.4 million, while the United Kingdom generated $554.8 million. Asia-Pacific revenues were $537.6 million, down slightly. Middle East and Africa revenues fell at a double-digit rate amid ongoing regional conflict. Adjusted EBITA from Core Operations increased 20.4% to $1.07 billion. The related margin expanded 190 basis points to 17.8%, primarily reflecting cost-reduction synergies tied to the Interpublic combination. On a consolidated basis, adjusted EBITA rose 83.7% to $1.13 billion, while the adjusted EBITA margin improved to 17.2% from 15.3%. Reported operating income increased to $922.5 million, supported by revenue growth and the acquisition. Operating expenses climbed to $5.64 billion, largely because of the Interpublic acquisition. The quarter included $40.1 million of integration and transaction costs and $47 million of severance and repositioning expenses. Net interest expense increased to $93.3 million from $40.7 million, mainly due to debt assumed in the acquisition and refinancing activities. The adjusted effective tax rate declined to 26% from 26.5% a year earlier. Following the first-half performance, management raised its 2026 organic revenue growth outlook for ongoing operations to 4.5-5% from 4%. The company also expects adjusted earnings growth of more than 15% for the year. Omnicom remains on track to achieve $900 million of cost-reduction synergies in 2026 and $1.5 billion by mid-2028. Management said slightly more than half of the 2026 target had been delivered through the first half. Free cash flow totaled $1.50 billion during the first six months of 2026. Cash and cash equivalents were $3.34 billion at quarter-end, while gross long-term debt was $10.18 billion. The company repurchased roughly $3 billion of shares in the first half. Omnicom expects another $500 million of repurchases during 2026 and plans to complete its $5 billion authorization by the end of the first quarter of 2027. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.25% due to these changes. At this time, Omnicom has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Omnicom has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. 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

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Omnicom Group (OMC) is in focus after its second quarter 2026 results, as strong revenue and earnings per share figures met a cooler market response, with investors concentrating on margin pressure and adjusted EBITDA shortfalls. See our latest analysis for Omnicom Group. At a share price of $79.61 after the earnings release, Omnicom Group is giving back some of its recent momentum, with a 1 month share price return of 9.31% but a year to date share price return that is down 2.10%, while the 1 year total shareholder return of 14.93% points to more supportive longer term sentiment. If Omnicom Group’s latest move has you thinking about what else could be on your radar, this is a good moment to broaden the search and uncover 19 top founder-led companies Bulls point to Omnicom Group’s strong earnings progress, market share and buybacks. Bears focus on margin pressure and the adjusted EBITDA miss. As the dust from this earnings move settles, which case does the current valuation support? Against Omnicom Group’s last close at $79.61, the most followed narrative points to a higher fair value anchored on cash flow and integration upside. Read the complete narrative. Want to see what is baked into that valuation gap? The narrative leans heavily on earnings power, margin rebuild, and a richer multiple on future profits. According to the most widely followed narrative, analysts blend those revenue and margin assumptions into a fair value estimate of $102.83 for Omnicom Group, using a discount rate of 7.76% to bring those projected cash flows back to today. That sits above the current share price, which is why the narrative frames the stock as trading at a discount to its assessed worth. Result: Fair Value of $102.83 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Omnicom Group still faces meaningful risks if the Interpublic integration proves more costly or disruptive than expected, or if AI tools push more clients in house. Find out about the key risks to this Omnicom Group narrative. While the current narrative leans on discounted cash flows and a fair value of $102.83, the market’s own yardstick tells a different story. Omnicom Group trades on a P/E of 56x, compared with a peer average of 44.7x and a fair ratio of 29.6x. That implies a rich valuation and less margin for error. Which signal do you weigh more heavily before committing fresh capital? For a closer look at how this compares across peers and what the fair ratio suggests the market could move toward next, See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around Omnicom Group, it helps to check the underlying data and weigh both sides yourself before the market moves on. To see the full balance of potential upsides and areas of concern, start with these 2 key rewards and 5 important warning signs If Omnicom Group has sharpened your focus, do not stop here. Broadening your watchlist now can help you spot opportunities before the crowd catches on. Target resilient income by reviewing companies that qualify as 8 dividend fortresses and see which payouts might better suit your goals. Hunt for quality at a reasonable price by scanning our 56 high quality undervalued stocks and compare how their fundamentals stack up against Omnicom Group. Spot potential early movers with solid foundations by using the screener containing 20 high quality undiscovered gems before they sit firmly on everyone else's radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OMC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Omnicom Group Inc. OMC gives investors a difficult setup after its second-quarter beat. The stock looks inexpensive. The company's quarterly results improved and current fiscal-year earnings are expected to grow. The debate is whether that value is enough. Estimate cuts, higher debt, a below-market price target and a weak short-term ranking signal keep the risk-reward profile cautious. OMC recently traded at 6.71 times forward 12-month earnings. That was below 8.39 times for the advertising and marketing sub-industry, 17.98 times for the broader business services sector and 20.1 times for the S&P 500. The discount also stands out versus Omnicom’s own history. Its five-year median multiple is 10.95 times, which explains why value-oriented investors may view the stock as underpriced. Omnicom reported adjusted earnings of $2.65 per share for the second quarter of 2026, topping the consensus estimate. Revenues of $6.56 billion also came in above expectations. Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote Revenues rose sharply as the Interpublic acquisition reshaped the company’s scale. Core Operations delivered 6.1% organic revenue growth, showing that the quarter was not just a transaction-driven comparison. The current fiscal-year earnings estimate moved 5.6% lower over the past four weeks. That revision matters because the market often reacts more to future estimate direction than to one completed quarter. Debt is another offset. Net interest expense rose to $93.3 million from $40.7 million, while gross long-term debt stood at $10.18 billion. Those costs can absorb part of the benefit from projected sales growth of 49.2% and earnings growth of 19.6% for 2026. OMC’s $79.61 share price sits above the $68 price target. That target reflects 5.73 times price to forward 12-month earnings, below even the already-low current valuation multiple. The gap suggests valuation alone may not protect shareholders. Integration concerns, pricing pressure and any weakness in advertising budgets could keep the market from awarding Omnicom a higher multiple. Cash returns remain a major support. OMC offers a $3.20 annual dividend, equal to a 4.0% yield, and generated $1.50 billion of free cash flow in the first six months of 2026. The repurchase program is also aggressive. Omnicom repurchased roughly $3 billion of shares in the first half and expects another $500 million during 2026, but liquidity remains tight with a current ratio of 0.92. Funding needs matter after the merger. Integration and acquisition-related costs reached $99.5 million in the first half, so shareholder returns must compete with restructuring and merger integration spending. The bottom line is that OMC is a cheap stock with real earnings support, but it is not a clean value case. Investors have to weigh the discount against estimate pressure, leverage and execution risk. The stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. That weak short-term signal conflicts with its Value Score of A, Growth Score of A and VGM Score of A, while its Momentum Score of D points to less favorable timing. Style Scores are designed to complement the Zacks Rank, not replace it. A strong value or growth profile can highlight long-term appeal, but negative estimate revisions make the near-term setup more cautious. Peer comparisons reinforce that caution. WPP plc WPP and Publicis Groupe SA PUBGY give investors alternative exposure to global advertising and marketing services, so OMC’s discount needs to be judged against both industry competition and its own execution burden. 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 Publicis Groupe SA (PUBGY) : Free Stock Analysis Report WPP PLC (WPP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Omnicom OMC reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. OMC’s adjusted earnings of $2.65 per share topped the Zacks Consensus Estimate by 0.4% and increased 29.3% from the year-ago quarter. Revenues of $6.56 billion surpassed the consensus estimate by 0.8% and rose 63.3% year over year. Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote The sharp rise in revenues reflects the contribution from the Interpublic Group acquisition. Core Operations delivered 6.1% organic growth, led by Integrated Media and Experiential businesses. OMC’s shares have gained 16% over the past year compared with the industry’s 29.4% growth. The Zacks S&P 500 composite has risen 18.6% over the same time frame. Core Operations revenues increased 7.2% year over year to $6 billion. Organic growth contributed $339 million, while favorable foreign-currency translation added $61.7 million. Core Operations exclude businesses already divested or classified as held for sale. Management attributed the performance to expanding services for existing clients and winning new business. Omnicom added work in sports, media, production, commerce, social and influencer marketing for clients including American Express, General Mills and Uber. New integrated media wins included Adidas, IBM and Subway. Integrated Media generated $3.15 billion, representing 52.5% of Core Operations revenues. The discipline recorded organic growth of slightly more than 10%, supported by demand for media, commerce, data, customer relationship management and consulting services. Advertising revenues were $942.6 million, or 15.7% of the total and declined by high single digits organically. Management linked the weakness partly to internal restructuring, brand realignment and the disposal of smaller, slower-growing operations. Public Relations contributed $679.1 million, accounting for 11.3% of Core Operations revenues, with mid-single-digit organic growth. Experiential & Other produced $669.2 million, or 11.2%, and grew more than 10% organically, aided by activity related to the FIFA World Cup. Health revenues were $555.9 million, representing 9.3% of the total and remaining flat organically. The varied performance highlights Omnicom's reliance on Integrated Media and Experiential operations to offset softness in Advertising. The United States generated $3.54 billion, or 59% of Core Operations revenues, and recorded high-single-digit organic growth. Latin America contributed $227.9 million and expanded more than 10%, making it a notable regional growth driver. Euro Markets and Other Europe produced $826.4 million, while the United Kingdom generated $554.8 million. Asia-Pacific revenues were $537.6 million, down slightly. Middle East and Africa revenues fell at a double-digit rate amid ongoing regional conflict. Adjusted EBITA from Core Operations increased 20.4% to $1.07 billion. The related margin expanded 190 basis points to 17.8%, primarily reflecting cost-reduction synergies tied to the Interpublic combination. On a consolidated basis, adjusted EBITA rose 83.7% to $1.13 billion, while the adjusted EBITA margin improved to 17.2% from 15.3%. Reported operating income increased to $922.5 million, supported by revenue growth and the acquisition. Operating expenses climbed to $5.64 billion, largely because of the Interpublic acquisition. The quarter included $40.1 million of integration and transaction costs and $47 million of severance and repositioning expenses. Net interest expense increased to $93.3 million from $40.7 million, mainly due to debt assumed in the acquisition and refinancing activities. The adjusted effective tax rate declined to 26% from 26.5% a year earlier. Following the first-half performance, management raised its 2026 organic revenue growth outlook for ongoing operations to 4.5-5% from 4%. The company also expects adjusted earnings growth of more than 15% for the year. Omnicom remains on track to achieve $900 million of cost-reduction synergies in 2026 and $1.5 billion by mid-2028. Management said slightly more than half of the 2026 target had been delivered through the first half. Free cash flow totaled $1.50 billion during the first six months of 2026. Cash and cash equivalents were $3.34 billion at quarter-end, while gross long-term debt was $10.18 billion. The company repurchased roughly $3 billion of shares in the first half. Omnicom expects another $500 million of repurchases during 2026 and plans to complete its $5 billion authorization by the end of the first quarter of 2027. Omnicom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million surpassed the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% 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 Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 6.1% organic revenue growth in Core Operations, driven by strong performance in Integrated Media and Experiential disciplines. Transitioned from a holding company to an integrated operating company, leveraging combined talent and capabilities across creativity, media, and data. Performance was bolstered by expanding services to existing clients in high-demand areas like sports, commerce, and social media. Strategic portfolio pruning removed low-growth assets, which previously acted as a drag on overall organic growth metrics. Unified data and AI assets through the Omni platform to provide clients with faster execution and better business outcomes. Management attributes success to a more agile organization better equipped to help clients compete in a rapidly changing world. High post-acquisition client retention rates reinforce the value proposition of the new combined entity. Raised full-year 2026 organic revenue growth guidance for Core Operations to a range of 4.5% to 5%. Expects to achieve $900 million in cost reduction synergies in 2026, with 75% to 80% impacting EBITDA growth. Focusing on 'agentic marketing transformation' using Omni's agentic layer for automated creation and orchestration. Anticipates completing the $5 billion share repurchase program by the end of the first quarter of 2027. Assumes a cautious but optimistic macro environment, noting that clients have largely digested geopolitical and inflationary pressures. Completed more than half of planned dispositions, with remaining assets expected to generate $525 million in second-half revenue. Recorded $40.1 million in integration-related costs and $47 million in severance and repositioning costs during the quarter. Net interest expense increased to $93 million primarily due to the assumption of $3 billion in debt from the Interpublic acquisition. Operating capital changes were negative $2.4 billion, largely reflecting the addition of Interpublic's operations and one-time integration payments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that organic growth is now more sustainable because they have exited low-growth markets and non-core businesses. The shift to an operating company model allows for more proactive cross-selling of multiple capabilities to existing clients. Phil Angelastro indicated that full-year adjusted EPS growth is expected to be in the high teens, exceeding 15%. Growth will be driven by a combination of organic revenue increases, synergy delivery, and share repurchases. Florian Adamski noted that IPG's Acxiom and Real ID assets are being integrated into the Omni platform to create a 'flywheel' of measurable returns. Principal media buying is viewed as a standard part of the modern value equation that clients now expect for value extraction. AI is being used to drive efficiency in workflows and effectiveness in audience targeting, though management noted the high underlying cost of AI technology. Savings generated by AI are typically shared with clients and often reinvested by those clients back into the marketplace.

This article first appeared on GuruFocus. Organic Revenue Growth: 6.1% in Q2 2026. Adjusted EBITDA Growth: 20.4% in Q2 2026. EBITDA Margin: Increased by almost 200 basis points to 17.8% in Q2 2026. Non-GAAP Adjusted EPS: $2.65 per share, an increase of 29.3% versus the prior year. Share Repurchase Program: $3 billion completed, with $5 billion planned by Q1 2027. Core Operations Revenue Growth: 7.2% in Q2 2026. Core Operations Adjusted EBITDA Margin: Increased to 17.8% from 15.9% in Q2 2025. Net Interest Expense: Increased to $93 million from $41 million in 2025. Depreciation Expense: $49 million in Q2 2026. Amortization Expense: $118 million in Q2 2026. Adjusted Tax Rate: 26% in Q2 2026. Non-GAAP Adjusted Net Income: Increased to $745.2 million. Core Operations Revenue: $6 billion in Q2 2026. Free Cash Flow: Increased due to Interpublic's business addition. Gross Long-term Debt: $10.2 billion at the end of Q2 2026. Cash Equivalents and Short-term Investments: $3.3 billion at the end of Q2 2026. Warning! GuruFocus has detected 8 Warning Signs with OMC. Is OMC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Omnicom Group Inc (NYSE:OMC) achieved organic growth of 6.1% in the second quarter, driven by strong performance in Integrated Media and Experiential disciplines. The company reported a significant increase in adjusted EBITDA growth of 20.4% and an EBITDA margin improvement of nearly 200 basis points to 17.8%. Non-GAAP adjusted EPS increased by 29.3% to $2.65 per share, reflecting strong financial performance. Omnicom Group Inc (NYSE:OMC) is on track to achieve $900 million in cost reduction synergies for 2026 and $1.5 billion by mid-2028. The company has completed $3 billion in share repurchases and plans to complete an additional $500 million in 2026, with the remainder by the first quarter of 2027. Net interest expense increased significantly to $93 million from $41 million in 2025, primarily due to the assumption of Interpublic debt. The advertising segment experienced a decline in revenue, down in the high single digits, indicating challenges in this area. Revenue growth in Asia Pacific decreased slightly, and the Middle East and Africa saw a double-digit decline due to ongoing conflict. The company is still in the process of completing planned dispositions, with $525 million in revenue expected from remaining dispositions in the second half of 2026. Omnicom Group Inc (NYSE:OMC) faces skepticism from the market regarding the sustainability of its current growth rate post-Interpublic acquisition. Q: John, there was a sizable acceleration in organic growth this quarter. Can you discuss the drivers behind this performance, particularly in media? Was it due to new business wins or better market demand? A: Our organic growth was driven by expanding services to our existing client base and new business wins. We have a nascent organization of qualified people proactively seeking opportunities and a more sophisticated corporate approach to new business, which are contributing to our organic growth. - John Wren, Chairman and Chief Executive Officer Q: Phil, you reiterated the $900 million synergy target for this year. Is the expectation still that 75% to 80% of that will impact growth and margin? A: Yes, we are on track to deliver 75% to 80% of the $900 million synergy target for the year. This includes continued investment in the business and the Omni platform, which is reflected in our improved EBITDA and margin. - Philip Angelastro, Chief Financial Officer, Executive Vice President Q: John, how sustainable is the current growth rate of Omnicom, especially considering the divestitures and synergies? A: We are confident in sustaining growth due to our portfolio of assets and the shift from a holding company to an operating company. We have divested low-growth businesses, which previously dragged down our growth rate, and are now focusing on high-growth areas. - John Wren, Chairman and Chief Executive Officer Q: Can you provide guidance on the expected EPS growth for 2026? A: We expect EPS growth to be in the high teens, greater than 15%, driven by strong performance in the first half, synergy realization, and a new business portfolio. - Philip Angelastro, Chief Financial Officer, Executive Vice President Q: How are AI-related cost savings being realized and shared with clients? Are clients reinvesting these savings into marketing? A: AI is helping us achieve efficiency and effectiveness, driving better outcomes for clients. Savings are shared with clients, and many are reinvesting these savings into the marketplace, enhancing their marketing efforts. - John Wren, Chairman and Chief Executive Officer and Paolo Yuvienco, Chief Technology Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript.

2026 Second Quarter - Core Operations: Revenue of $6.0 billion, 6.1% organic growth Non-GAAP Adjusted EBITA of $1.1 billion, 17.8% margin 2026 Second Quarter - Reported: Revenue of $6.6 billion Diluted earnings per share of $2.08; $2.65 Non-GAAP Adjusted, up 29% Operating Income of $922.5 million; $1.1 billion Non-GAAP Adjusted EBITA, 17.2% margin NEW YORK, July 28, 2026 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the quarter ended June 30, 2026. "Our second quarter results reflect the momentum of the new Omnicom. Revenue in our Core Operations grew 6.1% organically and we had strong margin expansion," said John Wren, Chairman and Chief Executive Officer of Omnicom. "We are built for an era where speed, integration, and scale matter most. Our wins this quarter demonstrate that. Clients are consolidating more work with us because they see the competitive advantage our connected capabilities deliver. Looking ahead, we will strengthen our position as an integrated growth partner by focusing on three key areas: leading in agentic marketing transformation, expanding and deepening our partnerships with existing and new clients, and helping clients win across the new consumer engagement models in sports & entertainment, social & creator, connected commerce, and AI-driven discovery." Second Quarter 2026 Results - Core Operations Revenue from Core OperationsRevenue from Core Operations in the second quarter of 2026 increased $403.1 million, or 7.2%, to $6.0 billion as compared to the second quarter of 2025, primarily due to an increase in organic revenue of $339.0 million, or 6.1%, and an increase due to foreign currency translation of $61.7 million, or 1.1%. Revenue contribution by discipline as a percentage of revenue from Core Operations of $6.0 billion in the second quarter of 2026 was as follows: $3.1 billion, or 52.5%, for Integrated Media; $942.6 million, or 15.7%, for Advertising; $555.9 million, or 9.3%, for Health; $679.1 million, or 11.3%, for Public Relations; and $669.2 million, or 11.2%, for Experiential & Other. Revenue from dispositions and assets held for sale was $567.5 million. Revenue contribution by region as a percentage of revenue from Core Operations of $6.0 billion in the second quarter of 2026 was as follows: $3.5 billion, or 59.0%, for the United States; $826.4 million, or 13.8%, for Euro Markets & Other Europe; $554.8 million, or 9.3%, for the United Kingdom; $537.6 million, or 9.0%, for Asia Pacific; $227.9 million, or 3.8%, for Latin America; $127.6 million, or 2.1%, for the Middle East & Africa; and $180.9 million, or 3.0%, for Other North America. Adjusted EBITA from Core OperationsAdjusted EBITA from Core Operations in the second quarter of 2026 increased $181.4 million to $1.1 billion as compared to the second quarter of 2025, and the related margin increased to 17.8% from 15.9%, primarily due to cost reduction synergies. For the second quarters of 2026 and 2025, Adjusted EBITA excluded repositioning costs, primarily related to severance actions in connection with the acquisition of The Interpublic Group of Companies, Inc. ("IPG") and integration and acquisition-related costs of $87.1 million ($73.3 million after tax) and $154.8 million ($128.8 million after tax), respectively. Core OperationsCore 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. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG. Second Quarter 2026 Results - Reported RevenueRevenue in the second quarter of 2026 increased $2.5 billion to $6.6 billion as compared to the second quarter of 2025, primarily due to the acquisition of IPG, which closed on November 26, 2025, and constant currency revenue growth. The impact of foreign currency translation increased revenue by $69.0 million, or 1.7%. Revenue in the second quarter of 2026 includes $567.5 million from dispositions and assets held for sale. ExpensesOperating expenses increased $2.1 billion to $5.6 billion in the second quarter of 2026 compared to the second quarter of 2025, primarily due to the acquisition of IPG. Included in operating expenses in the second quarter of 2026 are $40.1 million of integration and transaction costs related to the acquisition of IPG, and $47.0 million of repositioning costs. Salary and service costs increased $1.8 billion to $4.7 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 $3.0 billion, due to the revenue growth and the acquisition of IPG. Third-party service costs increased $604.0 million to $1.5 billion, primarily due to growth in our Integrated Media discipline and the acquisition of IPG. Third-party incidental costs increased $37.9 million to $224.3 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 $178.5 million to $504.4 million, primarily due to the acquisition of IPG. SG&A expenses increased $38.6 million to $209.0 million, primarily due to the acquisition of IPG. Included in SG&A expenses in the second quarter of 2026 are $40.1 million of integration and transaction costs related to the acquisition of IPG, compared to $66.0 million in the second quarter of 2025. Operating IncomeOperating income increased $483.3 million to $922.5 million in the second quarter of 2026 compared to the second 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, netNet interest expense in the second quarter of 2026 increased $52.6 million to $93.3 million compared to the second 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 $60.6 million to $123.2 million. Interest income increased $8.0 million to $29.9 million. Income TaxesOur effective tax rate for the second quarter of 2026 was 27.1% compared to 30.2% for the second quarter of 2025. The effective tax rates for 2026 and 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 second quarter of 2026 was 26.0% compared to 26.5% for the second quarter of 2025. Net Income – Omnicom Group Inc. and Diluted Net Income per ShareNet Income - Omnicom Group Inc. for the second quarter of 2026 increased $327.2 million to $584.8 million compared to the second quarter of 2025. Weighted-average diluted shares outstanding for the second quarter of 2026 increased to 281.0 million from 196.0 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 $2.08 increased by $0.77 from $1.31 in the prior year period. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2026 increased $0.60, or 29.3%, to $2.65 from $2.05. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarters of 2026 and 2025 excluded $87.1 million and $14.7 million, respectively, of after-tax amortization expense. Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2026 also excluded $38.0 million of after-tax integration and transaction costs, and $35.3 million of after-tax severance and repositioning costs. In 2025, Non-GAAP Adjusted Net Income per Share - Diluted excluded $61.6 million of costs related to the acquisition of IPG and $67.2 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. EBITAEBITA increased $581.2 million to $1,040.2 million in the second quarter of 2026 compared to the second quarter of 2025. Adjusted EBITA increased $513.5 million, or 83.7%, to $1,127.3 million in the second quarter of 2026 compared to the second quarter of 2025, and the related margin increased to 17.2% from 15.3%. EBITA and Adjusted EBITA excluded amortization expense of $117.7 million and $19.8 million in the second quarters of 2026 and 2025, respectively. Adjusted EBITA also excluded $40.1 million of costs related to the integration of IPG, and severance and repositioning costs of $47.0 million. Adjusted EBITA in the second quarter of 2025 also excluded $66.0 million of costs related to the acquisition of IPG and $88.8 million of severance and repositioning costs. Risks and UncertaintiesGlobal 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 ChangeWe 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 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 CallOmnicom will host a conference call to review its financial results on July 28, 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 OmnicomOmnicom (NYSE: OMC) is the world's leading marketing and sales company, built for intelligent growth in the next era. Powered by Omni and its proprietary data and identity, Omnicom's Connected Capabilities unite the company's world‑class agency brands, exceptional talent, and deep 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 omc.com. Non-GAAP Financial MeasuresWe 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 StatementsCertain 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. View original content:https://www.prnewswire.com/news-releases/omnicom-reports-second-quarter-2026-results-302836837.html

Interested in Omnicom Group Inc.? Here are five stocks we like better. Omnicom reported strong Q2 performance, with core organic revenue growth of 6.1%, adjusted EBITDA up 20.4%, and adjusted EPS rising 29.3% to $2.65. Management raised its 2026 organic growth outlook to 5% and expects adjusted EPS growth above 15%. Integrated media and experiential services led growth, each expanding more than 10%, while the U.S. and Latin America delivered strong regional results. Advertising revenue declined amid restructuring and the integration of Interpublic assets. Omnicom remains focused on merger synergies and portfolio streamlining, targeting $900 million in 2026 cost savings and $1.5 billion by mid-2028. It has completed $3 billion of a planned $5 billion share-repurchase program and expects to finish remaining divestitures by year-end. High Yield Revival: 3 Cash-Rich Dividend Payers on Sale Omnicom Group (NYSE:OMC) reported accelerating organic revenue growth in the second quarter of 2026, raised its full-year growth outlook and said it remains on track to deliver planned cost-reduction synergies following its combination with Interpublic. Chairman and Chief Executive Officer John Wren said revenue from core operations, which excludes assets held for sale and planned dispositions, grew organically by 6.1% during the quarter. Total core revenue increased 7.2% to $6 billion, aided by a 1.1% foreign-exchange benefit and a nominal contribution from a small acquisition. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit “These strong results were driven by our integrated media and experiential disciplines,” Wren said. He added that the company’s performance in the quarter and first half demonstrated momentum from the Interpublic combination and its effort to operate as a more integrated marketing and sales company. Core operations adjusted EBITDA rose 20.4%, or $181.4 million, in the second quarter, while the adjusted EBITDA margin expanded to 17.8% from 15.9% in the comparable combined 2025 period. Chief Financial Officer Phil Angelastro attributed the margin improvement primarily to cost-reduction synergies. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Non-GAAP adjusted diluted earnings per share increased 29.3% to $2.65, from $2.05 a year earlier. Adjusted net income rose $344.1 million to $745.2 million. The company’s adjusted tax rate was 26%, compared with 26.5% in 2025, and management expects its annual 2026 tax rate to remain at 26%. Based on first-half results, Omnicom raised its forecast for 2026 organic revenue growth from ongoing operations to 5%, from its prior range of 4% to 4.5%. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Angelastro also said the company expects full-year adjusted diluted EPS growth in the “high teens,” adding that growth of more than 15% is expected. He identified $8.65, Omnicom’s 2025 non-GAAP EPS figure, as the comparison base. Management reiterated its target of $900 million in cost-reduction synergies during 2026 and $1.5 billion by mid-2028. Angelastro said Omnicom was “a little over halfway” toward the 2026 synergy target at the end of the first half and expects 75% to 80% of the annual target to benefit earnings before interest, taxes and amortization growth and margin. The company also plans to continue investing in Omni and other business platforms. Integrated media, which includes media, commerce, data, CRM, consulting and content automation, represented about 53% of core revenue and posted organic growth of more than 10%. Experiential and other revenue, representing 11% of core revenue, also grew more than 10%, largely because of FIFA World Cup-related activity. Public relations revenue grew at a mid-single-digit rate, health revenue was flat, and advertising revenue declined at a high-single-digit rate. Angelastro said the advertising business has undergone internal reorganization as Omnicom integrates Interpublic assets, including realigning and, in some cases, eliminating brands as well as disposing of smaller low-growth markets. By geography, the U.S., which accounted for 59% of core revenue, grew at a high-single-digit rate. Europe grew at a low-single-digit pace, while Latin America increased more than 10%. Asia-Pacific revenue declined slightly, and Middle East and Africa revenue fell by double digits because of ongoing conflict, Angelastro said. Wren said organic growth reflected both expanded services for existing clients and new-business activity. The company cited expanded work in sports, media, production, commerce, social and influencer services for American Express, General Mills and Uber, along with new integrated media wins from Adidas, IBM and Subway. Omnicom has completed more than half of its planned asset dispositions through the end of July, according to management. The annualized revenue associated with the dispositions and businesses held for sale is now estimated at $3.5 billion to $3.6 billion, up from a previously discussed $3.2 billion. About 60% of the increase relates to advertising businesses, Angelastro said. The company expects the remaining businesses being disposed of to contribute approximately $300 million in revenue during the third quarter and $225 million in the fourth quarter, with EBITDA margins of about 10%. Omnicom expects to complete the remaining transactions by year-end. Wren said the divestitures have removed businesses and markets that had been lower growth or no growth, while in some markets Omnicom has retained minority positions to continue serving global clients without carrying the full financial burden of those operations. Omnicom also continued its $5 billion share-repurchase program. It completed $3 billion in repurchases through the first half, including a $2.5 billion accelerated share-repurchase program. Management expects to repurchase roughly another $500 million during 2026 and complete the balance by the end of the first quarter of 2027. At June 30, gross long-term debt was $10.2 billion, while cash equivalents and short-term investments totaled $3.3 billion. The company had an undrawn $3.5 billion revolving credit facility. Angelastro said Omnicom’s total debt-to-pro-forma-adjusted EBITDA leverage ratio was 2.4 times, below 2.6 times a year earlier. Wren identified agentic marketing transformation, consumer engagement and expanded client relationships as Omnicom’s major growth opportunities. He said Omni’s agentic layer, data and identity capabilities supported by Acxiom are designed to help clients with audience strategy, activation and cross-channel measurement. Management said clients are seeking measurable returns and value from marketing investment. Florian Adamski, who participated in the discussion of the media business, said the combined company’s data, identity, commerce and retail-media capabilities are being unified in Omni. On artificial intelligence, Wren said AI and generative AI are tools that Omnicom has used for some time and that agentic capabilities remain in early stages. He said savings generated through these tools are being shared with clients. Another executive, Paolo, said agentic workflows can improve delivery efficiency and consistency while data and identity assets can improve client outcomes. Wren added that clients are, in large part, reinvesting savings back into the marketplace. Omnicom Group Inc (NYSE: OMC) is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries. The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management. 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 Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Omnicom (OMC) came out with quarterly earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $2.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.38%. A quarter ago, it was expected that this advertising company would post earnings of $1.91 per share when it actually produced earnings of $1.9, delivering a surprise of -0.52%. 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 $6.56 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $4.02 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 added about 2.1% since the beginning of the year versus the S&P 500's gain of 8.3%. 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 $2.88 on $6.31 billion in revenues for the coming quarter and $10.97 on $25.96 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 38% 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. National CineMedia (NCMI), another stock in the same industry, has yet to report results for the quarter ended June 2026. This theater advertising company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +18.2%. The consensus EPS estimate for the quarter has been revised 66.7% lower over the last 30 days to the current level. National CineMedia's revenues are expected to be $60.4 million, up 16.6% 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 National CineMedia, Inc. (NCMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research