OMNICOM REPORTS THIRD QUARTER 2026 RESULTS

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

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

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.

 

 

 

 

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SOURCE Omnicom Group Inc.