Global advertising giant Omnicom Group (NYSE: OMC) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 4% year on year to $4.04 billion. Its non-GAAP profit of $2.24 per share was 3.1% above analysts’ consensus estimates.

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StockStory’s Take

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.

Looking forward, Omnicom’s guidance is anchored by expectations of closing the Interpublic acquisition and launching the OmniPlus platform, which will integrate data, AI, and automation across the combined organization. Management believes the company is well-positioned to accelerate growth by leveraging enhanced media scale, expanded healthcare capabilities, and an agent-based AI framework that underpins OmniPlus. CFO Phil Angelastro cautioned that visibility into year-end project activity remains limited, but management remains focused on capturing incremental revenue opportunities and delivering synergy targets. CEO John Wren stated, “We remain highly confident in exceeding the synergies we expected when we first announced the acquisition.”

Key Insights from Management’s Remarks

Omnicom’s Q3 performance was underpinned by robust media growth, targeted cost controls, and integration planning for its Interpublic acquisition, while select segments faced headwinds from project declines and industry-specific trends.

• Media and advertising momentum: Management credited media and advertising as the primary drivers of growth, with media revenues up 9% and broad-based strength across geographies. Creative offerings remained stable but did not contribute meaningfully to growth.

• Precision marketing deceleration: Precision marketing growth slowed, particularly in Europe, due to reduced government consulting work in Omnicom’s Cordero business. Management noted that the broader pipeline remains healthy and expects stabilization as new business ramps up.

• Public relations and event headwinds: Public relations declined 8%, mainly due to the absence of U.S. national election-related work, and experiential business also contracted by 18% owing to difficult comparisons with last year’s Olympics and related events.

• Integration and acquisition updates: Omnicom is nearing completion of its Interpublic acquisition, having secured all major antitrust clearances except from the European Union. Integration teams are finalizing plans, with management confident in exceeding previously communicated synergy targets.

• OmniPlus and AI adoption: The company is preparing to launch OmniPlus, a new marketing operating system that uses generative AI and integrates data across the organization. CTO Paulo Juveienko described AI as deeply embedded in workflows, improving execution in consumer research, creative concepting, and pricing analytics.

Drivers of Future Performance

Omnicom’s outlook is shaped by the anticipated Interpublic integration, the launch of OmniPlus, and ongoing pressures in certain project-driven segments.

• Interpublic integration and synergy realization: Management expects the combination with Interpublic to drive material revenue and cost synergies, particularly in media, healthcare, and precision marketing. CEO John Wren stated that integration planning is complete and the combined media business could grow by 50-60%, setting the stage for expanded offerings and operational efficiencies.

• OmniPlus platform and AI initiatives: The rollout of OmniPlus is expected to unify Omnicom’s and Interpublic’s data assets and AI capabilities, empowering both client solutions and internal teams. Management sees Omnicom’s agent-based AI approach as a differentiator, with applications spanning client campaign development, pricing, and healthcare product launches.

• Segment-specific risks and market conditions: Management highlighted ongoing softness in project-based creative, public relations, and experiential marketing. They also noted limited visibility into year-end project flows and macroeconomic uncertainties, such as shifting automotive industry strategies and evolving tariff landscapes, which could affect client budgets and segment performance.

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 $77.70, down from $78.69 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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