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Omnicom Group Inc.
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$16.3B
Market Cap
11.5
P/E
0.88
PEG
3.1%
ROCE
0.5%
ROE
0.86
D/E
14.7%
OPM
-11.2%
% from 52W High
55
α RS
🔍 OMC is showing a sector-leadership setup because Sector RRG has Communication Services in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, and an ECS of 78.2 last quarter. The main caution: margin_expansion's Backtest win rate is only 45.4%. Net: Mixed signal stack, not a recommendation. ? RRG Conviction ECS Backtest
Sources
Communication Services in Leading quadrant · Conviction 2/39 · ECS 78.2 · Backtest win rate 45.4%
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🌏 Global Investor Returns
Currency-adjusted total returns for OMC including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of media and advertising, precision marketing, public relations, healthcare, branding and retail commerce, experiential, execution, and support. The company’s services include advertising, branding, content marketing, crisis communications, customer data analytics and data-driven decision making, customer relationship management, decision sciences, digital experience design, digital transformation, e-commerce optimization, entertainment marketing, experiential marketing, field marketing, healthcare marketing and communications, in-store design, investor relations, and marketing research.Its services also comprise media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, organizational communications, package design, performance marketing, product placement, promotional marketing, public affairs, public relations, retail media and e-commerce, shopper marketing, structured innovation, studio production, social media and influencer marketing, and sports and event marketing. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.

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📈 Growth Pattern
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.6B
+63% YoY
Operating Income
$922.5M
+110% YoY
Operating Margin
14.1%
+3.2pp YoY
Net Income
$584.8M
+127% YoY
What Went Right
  • Core operations organic revenue grew 6.1% in Q2, led by integrated media (+10%) and experiential (+10%)
  • Adjusted EBITA margin expanded ~200bps to 17.8%, driven by cost synergies
  • Adjusted EPS rose 29.3% to $2.65, with $3B of buybacks completed
What to Watch
  • Advertising revenue declined high single digits due to internal reorganization and disposals
  • MEA revenue fell double digits due to ongoing conflict
  • H1 operating capital outflow was $2.4B, inflated by IPG integration and severance payments
Management Guidance
  • FY 2026 organic revenue growth raised to ~5% from 4-4.5%
  • Adjusted EPS growth expected high teens (>15%) for full year
  • Remaining dispositions: Q3 ~$300M revenue, Q4 ~$225M revenue, ~10% EBITDA margin
  • $900M cost reduction synergies on track for 2026; $1.5B by mid-2028
Investor Lens
The thesis is stronger after this call. Core organic growth of 6.1% validates the integrated Omnicom-IPG model, and the 200bps margin expansion shows synergies are being realized. Management raised the full-year organic guide to 5% and expects high-teens EPS growth, both positive signals. However, reported revenue growth is inflated by the IPG acquisition, and advertising weakness plus MEA disruption remain pockets of concern.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2: core revenue up 7.2%, EPS up 29%
Revenue
Core operations revenue was $6.0B, up 7.2% total and 6.1% organic. Integrated Media represented 52.5% of revenue and grew over 10%; Advertising was down high single digits.
Profitability
Reported net income was $584.8M; adjusted net income was $745.2M. Adjusted EPS rose 29.3% to $2.65, driven by higher income and a lower share count.
Margins
Adjusted EBITA margin expanded 190bps to 17.8% from 15.9%, primarily from cost reduction synergies. Reported operating margin was 14.1% vs 10.9% in the prior year.
Balance Sheet
Cash and short-term investments were $3.3B, with gross debt of $10.2B. $3B of share repurchases completed; $500M more expected in 2026 and the remainder by Q1 2027.
Key Risks
Advertising revenue weakness and MEA conflict are drags. H1 operating capital outflow was $2.4B, partly from integration costs; FX is expected to reduce Q3 reported revenue by ~1%.
Outlook
FY 2026 organic revenue growth raised to ~5%; adjusted EPS growth expected high teens. Synergy targets for 2026 remain on track.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-28
Q2 2026 saw 6.1% organic revenue growth and 20.4% adjusted EBITDA growth, with margin up 200 bps. Over half of planned asset dispositions are complete, synergy targets are on track, and full-year organic revenue growth guidance is raised to 5%.
Q1 2026 Q1 2026 2026-04-28
Core operations delivered 3.9% organic revenue growth and a 240 bps increase in adjusted EBITDA margin, driven by integration synergies and strong performance in integrated media. Share repurchases and asset dispositions are progressing, with double-digit EPS growth expected for the year.
Q4 2025 Q4 2025 2026-02-18
Closed the IPG acquisition, rapidly integrated operations, and began portfolio realignment, targeting $1.5 billion in synergies. Q4 adjusted EBITDA margin was 16.8%, with strong Media performance and a $5 billion share repurchase program underway.
Q3 2025 Q3 2025 2025-10-21
Organic revenue grew 2.6% in Q3, with strong media and advertising performance and stable creative. The Interpublic acquisition is on track to close in late November, with integration and AI-driven initiatives expected to drive future growth and synergies.
Q2 2025 Q2 2025 2025-07-15
Q2 2025 saw 3% organic growth and a stable 15.3% adjusted EBITDA margin, with Media and Advertising leading segment gains. The IPG acquisition is on track, synergy targets are reaffirmed, and AI-driven platforms are enhancing efficiency and client value.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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