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OMNICOM GROUP INC. (OMC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered solid organic growth (+2.6%), Adjusted EBITA of $651.0M (16.1% margin), and Non-GAAP diluted EPS of $2.24, while reported operating margin fell to 13.1% due to $99.4M of acquisition-related and repositioning costs tied to the pending IPG merger .
  • Omnicom beat Wall Street consensus on EPS and revenue: $2.24 vs $2.17 EPS* and $4.04B vs $4.02B revenue*; adjusted EBITA margin expanded 10 bps YoY; media & advertising led with +9.1% organic growth, offset by declines in healthcare (-1.9%), PR (-7.5%), branding & retail (-16.9%), and experiential (-17.7%) .
  • Management reiterated confidence in full-year targets (“comfortable with guidance for EBIT and revenue”) and expects 2025 adjusted EBITDA/EBITA margin 10 bps above 2024; adjusted tax rate 26.5–27% for FY25; Q4 FX impact similar to Q3; net interest expense +$7M YoY in Q4 .
  • IPG acquisition: antitrust clearances obtained in all jurisdictions except EU; filing submitted Oct 20; closing expected late November; management “highly confident in exceeding” synergy targets and cited new business wins (e.g., American Express, Porsche, Bayer) as momentum catalysts .

Values with asterisk (*) are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Adjusted EPS grew 10.3% YoY to $2.24; Adjusted EBITA rose 4.6% to $651.0M; adjusted margin expanded to 16.1% (+10 bps YoY) .
  • Media & Advertising organic growth +9.1% with strength across geographies; U.S. organic +4.6% and U.K. +3.7% .
  • Strategic progress: “We remain highly confident in exceeding the synergies we expected when we first announced the acquisition,” and Omni+ (next-gen operating system with agentic AI) is set to launch at CES 2026 .

What Went Wrong

  • Reported operating margin compressed to 13.1% (vs 15.5% LY) due to $60.8M IPG acquisition costs and $38.6M repositioning costs; SG&A rose 64% YoY (to $163.5M) largely from IPG integration costs .
  • Discipline pressure: PR (-7.5%) with ~$25M decline from absent U.S. national election spending, healthcare (-1.9%) from products coming off patent, branding & retail commerce (-16.9%), experiential (-17.7%) on Olympics comp .
  • Precision marketing growth “just under 1%,” hurt by Europe; CFO noted rising third-party service costs (variable with media growth) and management flagged limited visibility around Q4 project revenue capture .

Financial Results

Quarterly Performance and Margins

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$3,882.6 $3,690.4 $4,015.6 $4,037.1
Diluted EPS (Reported) ($)$1.95 $1.45 $1.31 $1.75
Diluted EPS (Non-GAAP Adjusted) ($)$2.03 $1.70 $2.05 $2.24
Operating Income Margin (%)15.5% 12.3% 10.9% 13.1%
Adjusted EBITA Margin (%)16.0% 13.8% 15.3% 16.1%

Actuals vs S&P Global Consensus (QTD)

MetricQ1 2025Q2 2025Q3 2025
Revenue Actual ($USD Millions)$3,690.4 $4,015.6 $4,037.1
Revenue Consensus Mean ($USD Millions)$3,717.2*$3,980.5*$4,019.1*
EPS (Non-GAAP Adjusted) Actual ($)$1.70 $2.05 $2.24
Primary EPS Consensus Mean ($)$1.662*$2.033*$2.174*
Beat/Miss (Q3 2025)——Beat (EPS and Revenue)*

Values with asterisk (*) are retrieved from S&P Global.

Discipline and Geography Organic Growth (Q3 2025)

CategoryOrganic Growth YoY
Media & Advertising+9.1%
Precision Marketing+0.8%
Execution & Support+2.0%
Healthcare-1.9%
Public Relations-7.5%
Branding & Retail Commerce-16.9%
Experiential-17.7%
GeographyOrganic Growth YoY
United States+4.6%
United Kingdom+3.7%
Euro Markets & Other Europe-3.1%
Asia Pacific-3.7%
Other North America-0.2%
Latin America+27.3%
Middle East & Africa+5.9%

KPIs and Balance Sheet Snapshot (Q3 2025)

KPIValue
ROE (LTM)31%
ROIC (LTM)17%
Cash & Short-Term Investments$3.4B
Book Value of Debt$6.3B
Undrawn Revolver$2.5B (backs $2.0B CP)
Share Repurchases$89M in Q3; ~$600M expected FY25
Capex (YTD)$111M

Operating expense notes: Salary & related decreased 3.7% to $1,778.5M; third-party service costs +21.8% to $955.6M; SG&A +$64.0M to $163.5M, including $60.8M IPG costs .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent UpdateChange
Organic Growth (Company-level)FY 2025In-line with original guidance“Comfortable with guidance… both EBIT and revenue” Maintained (qualitative)
Adjusted EBITDA/EBITA MarginFY 20252024 actual 15.5% baseline~10 bps higher vs 2024 (≈15.6%) Raised (vs 2024 baseline)
FX Impact on RevenueQ4 2025—Q4 FX impact similar to Q3 (~+1.4%) Maintained trend
Net Interest ExpenseQ4 2025—~+$7M YoY increase (lower interest income) Raised (expense)
Tax Rate (Adjusted)FY 2025—26.5%–27% Set range
Share RepurchasesFY 2025—~ $600M expected Set target

Dividend declared per share in Q3 was $0.70 (historical) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2, Q1)Current Period (Q3)Trend
AI/Technology (Omni/Omni+)Continued investment in Omni; operating efficiency and client outcomes (Q2 PR) ; Omni referenced with balanced growth (Q1 PR) Omni+ unifies data via Acxiom Real ID; agentic AI layer; fastest-growing platform; CES 2026 launch Expanding scope and deployment
IPG Acquisition & SynergiesCleared FTC; progressing regulatory approvals; expected close later in year (Q2 PR) EU filing submitted; close expected late Nov; “exceeding” synergy expectations Acceleration toward close; synergy confidence up
Supply Chain/TariffsMacro/geopolitical uncertainties monitored (Q2/Q1 PRs) More supply chain than tariffs; auto pivots; budgets stable overall Stabilizing budgets; sector-specific pivots
Discipline MixQ1/Q2 showed media strength; PR/healthcare/branding pressured Media +9.1%; PR/healthcare/branding/experiential down; precision marketing weak in Europe Mix divergence persists
Regional TrendsQ1: US/APAC up; UK/MEA down; Q2: US/Euro/APAC growth Q3: US/UK/LatAm/MEA up; Euro/APAC down Mixed; Euro/APAC softness
Capital AllocationQ1–Q2 ongoing repurchases/dividends Q3 repurchases $89M; ~$600M FY repurchases expected Ongoing buyback support

Management Commentary

  • “We remain highly confident in exceeding the synergies we expected when we first announced the acquisition.” (John Wren, CEO)
  • “Adjusting for acquisition-related expenses and repositioning costs, our Q3 2025 non-GAAP adjusted EBITDA/EBITA grew 4.6% to $651 million with a margin of 16.1%… adjusted diluted EPS grew 10.3% to $2.24.” (Philip Angelastro, CFO) .
  • “Media and advertising led our growth in the quarter with revenues up 9%… creative remained stable, while media growth was strong across virtually all geographies.” (Management) .
  • “Public relations declined… approximately $25 million or 80% of the decline results from no U.S. national election-related revenue in 2025 versus 2024.” (CFO) .
  • “We’re excited to be nearing this important milestone so we can emerge as the most powerful team, platform, and portfolio in the industry.” (CFO) .

Note: CFO references “adjusted EBITDA” at $651M with 16.1% margin; company press materials label the $651M metric as Adjusted EBITA (16.1% margin) .

Q&A Highlights

  • Precision Marketing softness: weakness in Europe (consulting work, government projects) drove deceleration; pipeline elsewhere remains strong .
  • Guidance framing: comfortable operating within original guidance ranges for revenue and EBIT; Q4 outcome sensitive to capturing $200–$250M of typical project work .
  • AI enablement: agentic framework embedded across workflows (research, concepting, production, commerce, health launches); partnerships with Adobe and industry protocols underway .
  • Synergies: management identified synergy potential “in excess of” prior commitments; revenue synergies expected in media (50–60% bigger), health, precision marketing .
  • Macro and budgets: conversations shifted to supply chain; automotive pivots; overall budgets roughly stable with “green shoots” into Q4 .

Estimates Context

  • Q3 2025 results exceeded S&P Global consensus: adjusted diluted EPS $2.24 vs $2.17*; revenue $4,037.1M vs $4,019.1M*; adjusted margin expanded YoY .
  • Sequentially, Q1 and Q2 also modestly exceeded consensus EPS and revenue*; Q4 2025 EPS consensus at ~$2.62* and revenue at ~$4.51B* set expectations for a seasonally stronger quarter.

Values with asterisk (*) are retrieved from S&P Global.

Key Takeaways for Investors

  • Mix matters: media strength (+9.1% organic) offsets discipline headwinds; expect continued divergence until healthcare/branding normalize .
  • Margin quality: adjusted EBITA margin +10 bps YoY to 16.1% despite integration costs; FY25 margin targeted ~15.6% on adjusted basis .
  • IPG close is a major catalyst: EU filing submitted; late-November close expected; management confident in exceeding synergy targets and scaling media, health, precision marketing .
  • Q4 watch items: FX tailwind similar to Q3; net interest expense +~$7M YoY; adjusted tax rate 26.5–27%; project revenue capture will influence Q4 finish .
  • Capital deployment: ~$600M FY25 buybacks alongside consistent dividends should support EPS; balance sheet liquidity ($3.4B cash, $2.5B undrawn revolver) provides flexibility .
  • Narrative drivers for the stock: closing/IPG synergy disclosures (early January, CES week), Omni+ launch details, and sustained media outperformance are key positive catalysts; Europe/APAC discipline softness and integration costs are the main watch-outs .

Appendix: Source Documents

  • Q3 2025 earnings press release and 8-K Item 2.02: Omnicom Reports Third Quarter 2025 Results .
  • Q3 2025 earnings call transcript (full): – – – –.
  • Prior quarters’ earnings press releases: Q2 2025 –; Q1 2025 –.
  • Other relevant Q3 period press releases: EU/FTC/regulatory and exchange offer updates – –; scheduling ; technology/AI initiatives (Credera AWS GenAI) ; Flywheel ROC dashboard .

Values marked with asterisk (*) are retrieved from S&P Global.