Omnicom Group’s third quarter results met Wall Street’s revenue expectations and slightly surpassed consensus for non-GAAP profit, with continued growth in media and advertising offsetting weaker segments such as public relations and healthcare. Management highlighted the resilience of Omnicom’s core U.S. business—up 4.6% organically—and pointed to disciplined expense management in the face of macroeconomic uncertainty. CEO John Wren emphasized that, despite a challenging environment for project-based creative and experiential services, recent new business wins in media and ongoing cost efficiencies sustained profitability. The company’s results were shaped by integration planning for the pending Interpublic acquisition, ongoing automation initiatives, and continued investment in its technology platform.
Is now the time to buy OMC? Find out in our full research report (it’s free for active Edge members).
Omnicom Group (OMC) Q3 CY2025 Highlights:
- Revenue: $4.04 billion vs analyst estimates of $4.03 billion (4% year-on-year growth, in line)
- Adjusted EPS: $2.24 vs analyst estimates of $2.17 (3.1% beat)
- Adjusted EBITDA: $649.7 million vs analyst estimates of $688 million (16.1% margin, 5.6% miss)
- Operating Margin: 13.1%, down from 15.5% in the same quarter last year
- Organic Revenue rose 2.6% year on year vs analyst estimates of 2.7% growth (9.8 basis point miss)
- Market Capitalization: $15.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Omnicom Group’s Q3 Earnings Call
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Adam Berlin (UBS) asked about the timeline for pro forma financials and guidance post-acquisition; CEO John Wren indicated updates would likely come around CES in January or soon after year-end, with synergy details forthcoming.
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Adam Berlin (UBS) also questioned the slowdown in precision marketing; Wren pointed to weakness in European government consulting and affirmed the broader business remains solid with a healthy pipeline.
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David Karnovsky (JPMorgan) sought clarification on organic revenue guidance and the impact of lumpy project work; CFO Phil Angelastro emphasized year-end outcomes depend on capturing available project work and noted positive underlying business trends when adjusting for last year’s election and Olympic effects.
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Steven Cahall (Wells Fargo) asked about creative performance, the impact of generative AI, and synergy upside; CTO Paulo Juveienko detailed AI’s integration across workflows, while Wren reiterated confidence in exceeding initial synergy targets.
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Craig Huber (Huber Research) inquired about the main sources of revenue synergies post-Interpublic merger; Wren identified media, healthcare, and precision marketing as top areas for initial growth and differentiation.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will focus on (1) the successful closing and integration of the Interpublic acquisition, (2) the formal launch and client adoption of the OmniPlus operating system, and (3) stabilization or recovery in underperforming business lines such as public relations, healthcare, and experiential marketing. Progress on synergy realization and new business wins will also be essential signposts.
Omnicom Group currently trades at $79.20, in line with $78.69 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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