Omnicom Group Inc. (OMC) Earnings & Analysis

Latest quarter

Omnicom reported third-quarter revenue of $6.4 billion, above the $6.1 billion consensus. Adjusted earnings per share were $2.73, compared with the consensus of $2.68.

Revenue rose from $4.0 billion a year earlier, while diluted EPS increased to $2.38 from $1.75. CFO Phil Angelastro noted that the prior-year reported results included Omnicom alone, not Interpublic, which was acquired in 2025.

Angelastro said core operations grew organically by 7.20%, excluding completed dispositions and businesses held for sale. He said integrated media grew by over 10.0%, while advertising revenue fell by a mid-single-digit rate. Experiential growth benefited from the FIFA World Cup, he said, while health revenue was marginally lower.

Omnicom reported an operating margin of 15.4%, up from 13.1% a year earlier. Free cash flow increased to $912.5 million from $438.4 million; Angelastro said the increase was primarily due to the addition of Interpublic’s business and that Omnicom’s definition excludes changes in operating capital.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO John Wren said Omnicom’s connected capabilities were bringing in new assignments and helping it retain and expand client relationships. He cited an extension of the Mercedes-Benz contract and an integrated assignment for the Los Angeles Olympic Games. Wren also said Omnicom had agreed to collaborate with Amazon Web Services to help clients modernize marketing infrastructure and deploy AI.

On the call, Angelastro said integrated media accounted for 53.0% of revenue and that experiential growth was helped by the FIFA World Cup. He said advertising had declined organically, although it improved from the first half, while Middle East and Africa revenue fell amid the ongoing conflict.

Wren attributed the 18.2% core adjusted EBITA margin to business performance and merger cost savings, partly offset by investment in people, operations and the platform. Angelastro said the company was balancing the timing of savings against spending on technology platforms and agentic AI. Asked how merger synergies would flow through to earnings, he said Omnicom remained on track to deliver 75.0% to 85.0% of the expected savings to the bottom line, alongside other business growth and investments.

Asked about the quarter ahead, Angelastro said he expected a similar margin improvement to that achieved so far this year, but added: “we don’t have a lot of visibility into project spend at this point”. Wren said Omnicom was not yet prepared to forecast organic growth for next year. On competition for new business, he said pitch activity was typical and that more opportunities were for accounts Omnicom was not defending.

Wren said real estate and back-office integration and outsourcing were substantially complete, and that “our planned people actions are mostly behind us”. Angelastro said most acquisition spending through the first nine months went toward buying additional minority interests as part of integration.

Guidance

Angelastro now estimates $325.0 million in fourth-quarter revenue from businesses awaiting disposition, compared with the prior estimate of $225.0 million for dispositions and held-for-sale businesses. He said Omnicom plans to complete its $5.0 billion share repurchase program by April 2027; its previous plan was to finish by the end of the first quarter of 2027.