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Omnicom Reports Fourth Quarter and Full Year 2025 Results

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Omnicom (NYSE: OMC) reported 4Q25 revenue of $5.53B and full-year 2025 revenue of $17.27B. Fourth-quarter GAAP results included a $977.2M operating loss and $941.1M net loss driven by IPG acquisition costs, repositioning charges and dispositions. The company authorized a $5.0B share buyback and doubled cost synergy targets to $1.5B.

Non-GAAP adjusted metrics improved: 4Q25 adjusted EBITA of $928.9M (16.8% margin) and full-year adjusted EBITA of $2.70B (15.6% margin).

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Positive

  • Revenue +27.9% in Q4 2025 to $5.53B
  • Full-year revenue +10.1% in 2025 to $17.27B
  • Adjusted EBITA Q4 2025 of $928.9M (16.8% margin)
  • Board-authorized $5.0B share buyback, incl. $2.5B ASR
  • Doubled cost synergy target to $1.5B, $900M in 2026

Negative

  • Q4 2025 operating loss of $977.2M
  • Q4 2025 net loss of $941.1M
  • Full-year 2025 net loss of $54.5M and diluted loss $0.27
  • Operating expenses up $3.4B (25.4%) in 2025
  • Effective tax rate rose to 87.1% for 2025

News Market Reaction

+3.21% 2.7x vol
96 alerts
+3.21% News Effect
+11.1% Peak in 23 hr 55 min
+$794M Valuation Impact
$25.51B Market Cap
2.7x Rel. Volume

On the day this news was published, OMC gained 3.21%, reflecting a moderate positive market reaction. Argus tracked a peak move of +11.1% during that session. Our momentum scanner triggered 96 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $794M to the company's valuation, bringing the market cap to $25.51B at that time. Trading volume was elevated at 2.7x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 Revenue: $5.5 billion Q4 2025 Adjusted EPS: $2.59 FY 2025 Revenue: $17.3 billion +5 more
8 metrics
Q4 2025 Revenue $5.5 billion Fourth quarter 2025 revenue
Q4 2025 Adjusted EPS $2.59 Non-GAAP adjusted diluted EPS, Q4 2025
FY 2025 Revenue $17.3 billion Full year 2025 revenue
FY 2025 Adjusted EPS $8.65 Non-GAAP adjusted diluted EPS, full year 2025
IPG Acquisition Costs 2025 $347.3 million IPG acquisition-related costs included in 2025 operating expenses
Repositioning Costs 2025 $1.2 billion Repositioning costs recorded in 2025
Cost Synergy Target $1.5 billion Total cost synergy target, including $900 million in 2026
Share Buyback Authorization $5.0 billion Board-authorized repurchase, including $2.5 billion ASR

Market Reality Check

Price: $80.94 Vol: Volume 4,291,834 vs 20-da...
normal vol
$80.94 Last Close
Volume Volume 4,291,834 vs 20-day average 4,548,747, indicating slightly lighter-than-typical trading. normal
Technical Price 67.98 is trading below the 200-day MA at 75.39, reflecting a weaker intermediate trend.

Peers on Argus

OMC declined 1.48% with several key peers also lower today (e.g., TTD -2.43%, AP...
1 Up

OMC declined 1.48% with several key peers also lower today (e.g., TTD -2.43%, APP -1.98%, WPP -1.87%, IPG -0.36%), while QMMM was a notable outlier to the upside at +19.44%.

Previous Earnings Reports

5 past events · Latest: Oct 21 (Positive)
Same Type Pattern 5 events
Date Event Sentiment Move Catalyst
Oct 21 Q3 2025 earnings Positive +0.7% Q3 2025 revenue and adjusted EPS growth despite acquisition costs.
Jul 15 Q2 2025 earnings Positive +4.6% Q2 revenue and organic growth with higher non-GAAP EPS and strong media.
Apr 15 Q1 2025 earnings Positive -7.3% Q1 revenue and organic growth offset by higher expenses and tax rate.
Feb 04 Q4/FY 2024 earnings Positive -2.3% Strong Q4 and 2024 growth with proposed Interpublic acquisition plans.
Dec 03 New business wins Positive -1.1% Record new business billings and high retention at Omnicom Media Group.
Pattern Detected

Earnings and other fundamentally positive updates have often been met with modest downside moves, indicating a tendency for the stock to sell off or lag after good news.

Recent Company History

Over the past year, Omnicom’s earnings releases have generally shown revenue growth and solid Adjusted EBITA margins, but market reactions have been mixed. Q1–Q3 2025 results highlighted steady organic growth and rising non-GAAP EPS alongside acquisition and repositioning costs tied to Interpublic. The strong Q4 and full-year 2024 report also saw a negative reaction. This new 2025 Q4/full-year update extends that narrative, combining higher revenue and adjusted metrics with sizable integration and repositioning charges.

Historical Comparison

-1.1% avg move · Past earnings-related headlines saw an average move of -1.08%. Today’s -1.48% reaction to Q4/FY 2025...
earnings
-1.1%
Average Historical Move earnings

Past earnings-related headlines saw an average move of -1.08%. Today’s -1.48% reaction to Q4/FY 2025 results is directionally consistent and only slightly more negative than typical.

Earnings updates over 2025 show steady revenue and adjusted EPS growth across Q1–Q3, followed by Q4 and full-year 2025 results that incorporate the completed Interpublic acquisition, larger repositioning charges, and initial integration effects on margins.

Market Pulse Summary

This announcement details Omnicom’s Q4 and full-year 2025 performance, showing revenue growth to $5....
Analysis

This announcement details Omnicom’s Q4 and full-year 2025 performance, showing revenue growth to $5.5 billion in the quarter and $17.3 billion for the year, alongside higher non-GAAP adjusted EPS. At the same time, IPG acquisition costs, significant repositioning charges, and losses on planned dispositions weighed on GAAP results. Historically, earnings updates have produced mixed price reactions, so investors may watch integration progress, synergy realization toward the $1.5 billion target, and Adjusted EBITA margins as key markers.

Key Terms

non-gaap, ebita, adjusted ebitA, accelerated share repurchase, +4 more
8 terms
non-gaap financial
"net income of $607.7 million Non-GAAP adjustedDiluted loss per share"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
ebita financial
"EBITA | $ (924.5) | | $ 707.6"
EBITA stands for Earnings Before Interest, Taxes and Amortization and measures a company’s profit from operations after removing the effects of financing, tax rules and amortization charges. Investors use it to compare underlying business performance across firms by focusing on the company’s core ability to generate cash, like judging a car’s engine power before accounting for fuel costs, loan payments and bookkeeping adjustments.
adjusted ebitA financial
"Adjusted EBITA | 928.9 | | 722.2"
Adjusted EBITA is a measure of a company’s operating profit before interest, taxes and amortization, further modified to remove one-time or unusual items so it reflects ongoing business earnings. It matters to investors because it aims to show the company’s core cash-making ability — like listening to an engine without road noise — making comparisons across periods or peers easier, though companies may differ in what they exclude.
accelerated share repurchase financial
"a $5.0 billion share buyback, including a $2.5 billion Accelerated Share Repurchase."
An accelerated share repurchase is a deal where a company hires a bank to buy back a large block of its own stock immediately on the open market, with the bank later settling the exact number of shares over time. For investors it matters because the immediate reduction in shares outstanding can raise per‑share earnings and often supports the stock price, but it also uses company cash or borrowing and can change liquidity and future growth funding.
foreign currency translation financial
"The impact of foreign currency translation increased revenue by $89.0 million"
Foreign currency translation is the process of converting financial statements prepared in one currency into another currency so they can be combined or compared. Investors care because exchange rate swings can change reported revenue, profit and asset values even when a company’s underlying business hasn’t changed — like converting vacation spending back to your home money and seeing the total rise or fall depending on the day’s exchange rate.
constant currency growth financial
"primarily due to constant currency revenue growth and to the inclusion"
Constant currency growth measures how a company’s sales or revenue would have changed if exchange rates had stayed the same as in a prior period, removing the ups and downs caused by currency swings. Investors use it to see the underlying business trend—like comparing two baking recipes using the same-sized cups—so performance comparisons across periods and markets aren’t distorted by changing exchange rates.
effective tax rate financial
"Our effective tax rate on the operating loss for the fourth quarter of 2025 was 12.7%"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
net interest expense financial
"Net interest expense in the fourth quarter of 2025 increased $15.1 million to $53.2 million"
Net interest expense is the amount a company pays in interest on its borrowings after subtracting the interest it earns on cash and investments; it’s effectively the company’s net cost of borrowing. Investors watch it because it reduces profits and cash available for dividends or growth, and it can rise or fall with interest rates and how much debt a company carries—think of it like your household mortgage payments minus any interest you get from savings.

AI-generated analysis. Not financial advice.

2025 Fourth Quarter:

  • Revenue of $5.5 billion
  • Net loss of $0.9 billion; net income of $607.7 million Non-GAAP adjusted
  • Diluted loss per share of $4.02; earnings per share of $2.59 Non-GAAP adjusted
  • Operating loss of $1.0 billion; Non-GAAP Adj. EBITA of $928.9 million with a 16.8% margin

2025 Full Year:

  • Revenue of $17.3 billion
  • Net loss of $54.5 million; net income of $1.8 billion Non-GAAP adjusted
  • Diluted loss per share of $0.27; earnings per share of $8.65 Non-GAAP adjusted
  • Operating income of $444.7 million; Non-GAAP Adj. EBITA of $2.7 billion with a 15.6% margin

NEW YORK, Feb. 18, 2026 /PRNewswire/ -- Omnicom (NYSE: OMC) today announced results for the full year and quarter ended December 31, 2025.

"Since the successful closing of the Interpublic acquisition on November 26, we made key leadership and brand announcements, refreshed our enterprise growth strategy, and launched the next generation of our Omni data and technology platform," said John Wren, Chairman and Chief Executive Officer of Omnicom. "We have also executed on three key priorities. First, we are simplifying and aligning our portfolio of businesses to prioritize Connected Capability delivery, growth, and profitability. Second, we are doubling our total cost synergy target to $1.5 billion, including $900 million in 2026. And third, our Board has authorized a $5.0 billion share buyback, including a $2.5 billion Accelerated Share Repurchase. We expect these catalysts to positively transform our business performance this year and beyond."

Fourth Quarter 2025 Results

$ in millions, except per share amounts

Three Months Ended December 31,


2025



2024



Revenue

$         5,528.8



$         4,322.2



Operating Income (Loss)

(977.2)



685.3



Operating Income Margin

(17.7) %



15.9 %



Net Income (Loss)1

(941.1)



448.0



Net Income (Loss) per Share - Diluted1

$             (4.02)



$               2.26



Non-GAAP Measures:1







EBITA

$           (924.5)



$            707.6



EBITA Margin

(16.7) %



16.4 %



Adjusted EBITA

928.9



722.2



Adjusted EBITA Margin

16.8 %



16.7 %



Non-GAAP Adjusted Net Income per Share - Diluted

$               2.59



$               2.41










1) See notes on page 13.

Revenue
Revenue in the fourth quarter of 2025 increased $1.2 billion, or 27.9%, to $5.5 billion as compared to the fourth quarter of 2024, primarily due to constant currency revenue growth and to the inclusion of one month of revenue attributable to The Interpublic Group of Companies, Inc. ("IPG") acquisition which closed on November 26, 2025. The impact of foreign currency translation increased revenue by $89.0 million, or 2.1%.

Revenue contribution by discipline in the fourth quarter of 2025 was as follows: 60.1% for Media & Advertising, 10.3% for Precision Marketing, 9.1% for Public Relations, 7.3% for Healthcare, 6.5% for Experiential, 3.7% for Execution & Support, and 3.0% for Branding & Retail Commerce.

Revenue contribution by region in the fourth quarter of 2025 was as follows: 51.9% for the United States, 17.6% for Euro Markets & Other Europe, 9.6% for the United Kingdom, 10.7% for Asia Pacific, 3.7% for Latin America, 3.7% for the Middle East & Africa, and 2.8% for Other North America.

Expenses
Operating expenses increased $2.9 billion to $6.5 billion in the fourth quarter of 2025 compared to the fourth quarter of 2024. Included in operating expenses in the fourth quarter of 2025 are $186.7 million of transaction costs related to the acquisition of IPG, $1.1 billion of repositioning costs, and $543.4 million of loss on planned dispositions following closing of the IPG acquisition. In addition, operating expenses include one month of operating expenses of IPG.

Salary and service costs increased $899.8 million, or 28.6%, to $4.0 billion primarily due to the IPG acquisition and constant currency revenue growth. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs and freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $480.8 million, or 25.2%, to $2.4 billion. As a percentage of revenue, salary and related costs decreased as compared to the prior period. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party service costs increased $388.1 million, or 36.8%, to $1.4 billion, primarily due to growth in our Media & Advertising and Experiential disciplines and the effects of including one month of IPG costs. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party incidental costs increased $30.9 million, or 17.3%, to $209.6 million, primarily due to revenue growth and the effects of including one month of IPG costs.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $83.0 million, or 25.9%, to $403.5 million, primarily due to the inclusion of one month of IPG occupancy costs in the quarter.

SG&A expenses increased $181.6 million, or 161.7%, to $293.9 million. Included in SG&A expenses in the fourth quarter of 2025 are $186.7 million of transaction costs related to the acquisition of IPG.

Operating Income (Loss)
Operating income decreased $1.7 billion, or 242.6%, to a loss of $977.2 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily as a result of IPG acquisition related costs and repositioning costs.

Interest Expense, net
Net interest expense in the fourth quarter of 2025 increased $15.1 million to $53.2 million compared to the fourth quarter of 2024, primarily due to the IPG acquisition and the related exchange of IPG debt into Omnicom debt. Interest expense increased $16.3 million to $81.3 million. Interest income increased $1.2 million to $28.1 million.

Income Taxes
Our effective tax rate on the operating loss for the fourth quarter of 2025 was 12.7% compared to 26.4% for the fourth quarter of 2024. The effective tax rate for 2025 reflects the impacts of the lower tax benefit associated with severance and repositioning charges and IPG acquisition related costs, which are not deductible in certain jurisdictions.

Net Income (Loss) – Omnicom Group Inc. and Diluted Net Income per Share
Net income - Omnicom Group Inc. for the fourth quarter of 2025 decreased $1.4 billion to a loss of $941.1 million compared to the fourth quarter of 2024. Weighted-average diluted shares outstanding for the fourth quarter of 2025 increased 17.8% to 233.8 million from 198.4 million primarily as a result of shares issued for the IPG acquisition, partially offset by net share repurchases. Diluted net loss per share of $4.02 decreased $6.28 from income per share $2.26

Non-GAAP Adjusted Net Income per Share - Diluted for the fourth quarter of 2025 increased $0.18, or 7.5%, to $2.59 from $2.41. Non-GAAP Adjusted Net Income per Share - Diluted for the fourth quarters of 2025 and 2024 excluded $39.0 million and $16.5 million, respectively, of after-tax amortization of acquired intangible assets and internally developed strategic platform assets. Non-GAAP Adjusted Net Income per Share - Diluted for the fourth quarter of 2025 also excluded $173.4 million of after-tax acquisition related costs, $892.6 million of after-tax repositioning costs and $443.8 million of loss on dispositions. In 2024, Non-GAAP Adjusted Net Income per Share - Diluted excluded $13.1 million of costs related to the acquisition of IPG. We present Non-GAAP Adjusted Net Income per Share - Diluted to allow for comparability with the prior year period.

EBITA
EBITA decreased $1.6 billion to a loss of $924.5 million in the fourth quarter of 2025 compared to the fourth quarter of 2024. Adjusted EBITA increased $206.7 million, or 28.6%, to $928.9 million in the fourth quarter of 2025 compared to the fourth quarter of 2024, and the related margin increased to 16.8% from 16.7%. EBITA and Adjusted EBITA excluded amortization of acquired intangible assets and internally developed strategic platform assets of $52.7 million and $22.3 million in the fourth quarters of 2025 and 2024, respectively. Adjusted EBITA also excluded $186.7 million of costs related to the acquisition of IPG, repositioning costs of $1.1 billion, and a loss on dispositions of $543.4 million in the fourth quarter of 2025. Adjusted EBITA in 2024 also excluded $14.6 million of costs related to the acquisition of IPG.

Full Year 2025 Results

$ in millions, except per share amounts

Year Ended December 31,


2025



2024



Revenue

$       17,271.9



$       15,689.1



Operating Income

444.7



2,274.6



Operating Income Margin

2.6 %



14.5 %



Net Income (Loss)1

(54.5)



1,480.6



Net Income (Loss) per Share - Diluted1

$             (0.27)



$               7.46



Non-GAAP Measures:1







EBITA

$            560.5



$         2,362.1



EBITA Margin

3.2 %



15.1 %



Adjusted EBITA

2,701.9



2,434.5



Adjusted EBITA Margin

15.6 %



15.5 %



Non-GAAP Adjusted Net Income per Share - Diluted

$               8.65



$               8.06










1) See notes on page 13

Revenue
Revenue in 2025 increased $1.6 billion, or 10.1%, to $17.3 billion as compared to 2024, primarily due to constant currency revenue growth. Our performance also benefited from one month of operations of IPG. The impact of foreign currency translation increased revenue by $124.6 million, or 0.8%.

Revenue contribution by discipline in 2025 was as follows: 58.0% for Media & Advertising, 11.2% for Precision Marketing, 9.3% for Public Relations, 8.0% for Healthcare, 5.0% for Experiential, 4.9% for Execution & Support, and 3.6% for Branding & Retail Commerce.

Revenue contribution by region in 2025 was as follows: 52.7% for the United States, 17.4% for Euro Markets & Other Europe, 11.1% for Asia Pacific, 10.5% for the United Kingdom, 3.1% for Latin America, 2.4% for the Middle East & Africa, and 2.8% for Other North America.

Expenses
Operating expenses increased $3.4 billion, or 25.4%, to $16.8 billion in 2025 compared to 2024. Included in operating expenses in 2025 are $347.3 million of IPG acquisition-related costs, $1.2 billion of repositioning costs related to the actions we took in the second and fourth quarters of 2025 and $547.1 million of loss on planned dispositions following closing of the IPG acquisition.

Salary and service costs increased $1.2 billion, or 10.6%, to $12.6 billion, primarily due to revenue growth and the inclusion of one month of operations of IPG. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs and freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $336.5 million, or 4.5%, to $7.8 billion. As a percentage of revenue, salary and related costs decreased as compared to the prior year. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party service costs increased $765.1 million, or 22.8%, to $4.1 billion, primarily due to growth in our Media & Advertising and Experiential disciplines and the effects of including one month of operations of IPG. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party incidental costs increased $109.9 million, or 17.1%, to $752.4 million, primarily due to revenue growth and the effects of including one month of IPG costs.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $92.3 million, or 7.2%, to $1.4 billion, primarily due to the effects of including one month of IPG costs.

SG&A expenses increased $337.6 million, to $745.7 million. Included in SG&A expenses in 2025 are $347.3 million of transaction costs related to the acquisition of IPG.

Operating Income
Operating income decreased $1.8 billion, to $444.7 million in 2025 compared to 2024 due to IPG acquisition related costs and repositioning costs.

Interest Expense, net
Net interest expense in 2025 increased $19.5 million to $166.5 million compared to 2024 primarily due to the IPG acquisition and the related exchange of IPG debt into Omnicom debt. Interest expense increased $15.5 million to $263.4 million. Interest income decreased $4.0 million to $96.9 million, primarily due to lower interest rates.

Income Taxes
Our effective tax rate for 2025 increased to 87.1% compared to 26.3% for 2024. The effective tax rate for 2025 increased primarily due to the lower tax benefit associated with severance and repositioning charges and IPG acquisition related costs, which are not deductible in certain jurisdictions.

Net Income (Loss) – Omnicom Group Inc. and Diluted Net Income per Share
Net income - Omnicom Group Inc. for 2025 decreased $1.5 billion to a net loss of $54.5 million compared to 2024. Weighted-average diluted shares outstanding for 2025 increased 3.2% to 204.9 million from 198.6 million, primarily as a result of shares issued for the IPG acquisition, partially offset by net share repurchases. Diluted net loss per share of $0.27 decreased from net income per share of $7.46

Non-GAAP Adjusted Net Income per Share - Diluted for 2025 increased $0.59, or 7.3%, to $8.65 from $8.06. Non-GAAP Adjusted Net Income per Share - Diluted for 2025 and 2024 excluded $85.7 million and $64.7 million, respectively, of after-tax amortization of acquired intangible assets and internally developed strategic platform assets. Non-GAAP Adjusted Net Income per Share - Diluted for 2025 excluded $318.5 million of after-tax acquisition related costs, $984.5 million of after-tax repositioning costs and $447.5 million of loss on dispositions. Non-GAAP Adjusted Net Income per Share - Diluted for 2024 excluded $13.1 million of after-tax acquisition related costs and $42.9 million of after-tax repositioning costs. We present Non-GAAP Adjusted Net Income per Share - Diluted to allow for comparability with the prior year period.

EBITA
EBITA decreased $1.8 billion, or 76.3%, to $560.5 million in 2025 compared to 2024, and the related margin decreased to 3.2% from 15.1%. Adjusted EBITA increased $267.4 million, or 11.0%, to $2.7 billion in 2025 compared to 2024, and the related margin increased to 15.6% from 15.5%. EBITA and Adjusted EBITA excluded amortization of acquired intangible assets and internally developed strategic platform assets of $115.8 million and $87.5 million in 2025 and 2024, respectively. Adjusted EBITA excluded $347.3 million of costs related to the acquisition of IPG, repositioning costs of $1.2 billion, and a loss on dispositions of $547.1 million in 2025. Adjusted EBITA in 2024 excluded $14.6 million of costs related to the acquisition of IPG and repositioning costs of $57.8 million.

Risks and Uncertainties
Global economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions and disruptions closely, as well as client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions and disruptions, reductions in client revenue, changes in client creditworthiness and other developments.

Definitions - Components of Revenue Change
We use certain terms in describing the components of the change in revenue above. 

Foreign exchange rate impact: calculated by translating the current period's local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue.

Constant currency growth: represents the change in revenue from the prior year, excluding the effects of foreign currency exchange rate fluctuations. This measure is calculated by adjusting current-period revenue to eliminate the impact of changes in foreign exchange rates and comparing the resulting amount to prior-year revenue.

Conference Call
Omnicom will host a conference call to review its financial results on February 18, 2026 starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom's investor relations website, investor.omc.com, and a webcast replay will be made available after the call concludes.

About Omnicom
Omnicom (NYSE: OMC) is the world's leading marketing and sales company, built for intelligent growth in the next era. Powered by Omni, Omnicom's Connected Capabilities unite the company's world-class agency brands, exceptional talent, and deep domain expertise across media, commerce, consulting, precision marketing, advertising, production, health, public relations, branding, and experiential to address clients' most critical growth priorities. For more information, visit omc.com.

Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in the United States ("GAAP") and adjustments to the GAAP presentation ("Non-GAAP"), which we believe are meaningful for understanding our performance. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. We define EBITA as earnings before interest, taxes, and amortization of acquired intangible assets and internally developed strategic platform assets, and EBITA margin is defined as EBITA divided by revenue. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense of acquired intangible assets and internally developed strategic platform assets. We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per share – Omnicom Group Inc. - Diluted as additional operating performance measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements 
Certain statements in this document contain forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In addition, from time to time, we or our representatives have made, or may make, forward-looking statements, orally or in writing. These statements, other than statements of historical fact, may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of our management as well as assumptions made by, and information currently available to, our management. Forward-looking statements may be accompanied by words such as "aim," "anticipate," "believe," "plan," "could," "should," "would," "estimate," "expect," "forecast," "future," "guidance," "intend," "may," "will," "possible," "potential," "predict," "project" or similar words, phrases or expressions. These forward-looking statements are subject to various risks and uncertainties, many of which are outside our control. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include:

  • risks relating to the completed merger (the "Merger") between us and The Interpublic Group of Companies, Inc. (IPG), including risks related to the integration of IPG's business, such as, among others: uncertainties associated with retaining key management and other employees; potential disruptions to client, vendor, and business partner relationships; the risk that integration activities may be more time-consuming, complex, or costly than expected; the possibility that anticipated synergies, efficiencies, and other benefits of the Merger may not be realized, or may be realized more slowly than anticipated; and risks associated with managing a larger, more complex combined organization and effectively integrating systems, processes, operations, and cultures;
  • adverse economic conditions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets, labor and supply chain issues affecting the distribution of our clients' products, or a disruption in the credit markets;
  • international, national or local economic conditions that could adversely affect us or our clients;
  • reductions in client spending, a slowdown in client payments or a deterioration or disruption in the credit markets;
  • the ability to attract new clients and retain existing clients in the manner anticipated;
  • changes in client marketing and communications services requirements;
  • failure to manage potential conflicts of interest between or among clients;
  • unanticipated changes related to competitive factors in the marketing and communications services industries;
  • unanticipated changes to, or an inability to hire and retain, key personnel;
  • currency exchange rate fluctuations;
  • reliance on information technology systems and risks related to cybersecurity incidents;
  • effective management of the risks, challenges and efficiencies presented by utilizing artificial intelligence, or AI, technologies and related partnerships in our business, and their use by our competitors;
  • failure to adapt to technological developments;
  • our liquidity, long-term financing needs, credit ratings and access to capital markets;
  • changes in legislation or governmental regulations affecting us or our clients;
  • losses on media purchases and production costs incurred on behalf of clients;
  • risks associated with assumptions we make in connection with our acquisitions, critical accounting estimates and legal proceedings;
  • our international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and an evolving regulatory environment in high-growth markets and developing countries;
  • risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives;
  • changes in tax rates, tax laws, regulations or interpretations, or adverse outcomes of tax audits or proceedings; and
  • other business, financial, operational and legal risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission (SEC).

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that may affect our business, including those described in Item 1A., "Risk Factors" and Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations", in our Annual Report on Form 10-K, in this document and in other documents filed from time to time with the SEC. Except as required under applicable law, we do not assume any obligation to update these forward-looking statements.

OMNICOM GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In millions, except per share amounts)

 



Three Months Ended
December 31,


Full Year



2025


2024


2025


2024

Revenue


$     5,528.8


$     4,322.2


$  17,271.9


$  15,689.1

Operating Expenses:









Salary and service costs


4,043.6


3,143.8


12,644.0


11,432.5

Occupancy and other costs


403.5


320.5


1,366.7


1,274.4

Severance and repositioning costs1


1,123.3



1,247.0


57.8

Loss on disposition of subsidiaries1


543.4



547.1


Cost of services


6,113.8


3,464.3


15,804.8


12,764.7

Selling, general and administrative expenses1


293.9


112.3


745.7


408.1

Depreciation and amortization


98.3


60.3


276.7


241.7

Total Operating Expenses1


6,506.0


3,636.9


16,827.2


13,414.5

Operating Income (Loss)


(977.2)


685.3


444.7


2,274.6

Interest Expense


81.3


65.0


263.4


247.9

Interest Income


28.1


26.9


96.9


100.9

Income (Loss) Before Income Taxes and Income From Equity Method Investments


(1,030.4)


647.2


278.2


2,127.6

Income Tax Expense (Benefit)1


(131.3)


170.6


242.2


560.5

Income From Equity Method Investments


1.2


2.3


7.7


6.9

Net Income (Loss)1


(897.9)


478.9


43.7


1,574.0

Net Income Attributed To Noncontrolling Interests


43.2


30.9


98.2


93.4

Net Income (Loss) - Omnicom Group Inc.1


$      (941.1)


$        448.0


$        (54.5)


$    1,480.6

Net Income (Loss) Per Share - Omnicom Group Inc.:1









Basic


$        (4.02)


$          2.28


$        (0.27)


$          7.54

Diluted


$        (4.02)


$          2.26


$        (0.27)


$          7.46










Dividends Declared Per Common Share


$          0.80


$          0.70


$          2.90


$          2.80



















Operating income (loss) margin


(17.7) %


15.9 %


2.6 %


14.5 %










Non-GAAP Measures:4









EBITA2


$      (924.5)


$        707.6


$        560.5


$    2,362.1

EBITA Margin2


(16.7) %


16.4 %


3.2 %


15.1 %

EBITA - Adjusted1,2


$        928.9


$        722.2


$    2,701.9


$    2,434.5

EBITA Margin - Adjusted1,2


16.8 %


16.7 %


15.6 %


15.5 %

Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3


$          2.59


$          2.41


$          8.65


$          8.06



1)

See Note 3 on page 13.

2)

See Note 4 on page 13 for the definition of EBITA.

3)

Adjusted Net Income per Share - Diluted for the three months and year ended December 31, 2025 excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax loss on disposition of subsidiaries and after-tax acquisition related costs. Adjusted Net Income per Share - Diluted for the three months and year ended December 31, 2024 excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets and after-tax acquisition related costs, and for the year ended December 31, 2024, also excludes after-tax severance and repositioning costs. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods.

4)

See Non-GAAP reconciliations starting on page 11.

 

OMNICOM GROUP INC. AND SUBSIDIARIES

DETAIL OF OPERATING EXPENSES

(Unaudited)

(In millions)

 


Three Months Ended
December 31,


Full Year


2025


2024


2025


2024

Revenue

$           5,528.8


$       4,322.2


$        17,271.9


$        15,689.1

Operating Expenses:








Salary and service costs:








Salary and related costs

2,391.1


1,910.3


7,777.9


7,441.4

Third-party service costs1

1,442.9


1,054.8


4,113.7


3,348.6

Third-party incidental costs2

209.6


178.7


752.4


642.5

Total salary and service costs

4,043.6


3,143.8


12,644.0


11,432.5

Occupancy and other costs

403.5


320.5


1,366.7


1,274.4

Severance and repositioning costs3

1,123.3



1,247.0


57.8

Loss on disposition of subsidiaries3

543.4



547.1


    Cost of services

6,113.8


3,464.3


15,804.8


12,764.7

Selling, general and administrative expenses3

293.9


112.3


745.7


408.1

Depreciation and amortization

98.3


60.3


276.7


241.7

Total operating expenses3

6,506.0


3,636.9


16,827.2


13,414.5

Operating Income (Loss)

$            (977.2)


$          685.3


$              444.7


$           2,274.6



1)

Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.

2)

Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs, which we bill back to the client directly at our cost and which we are required to include in revenue.

3)

See Note 3 on page 13.

 

OMNICOM GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions)

 


Three Months Ended December 31,


Full Year


2025


2024


2025


2024

Net Income (Loss) - Omnicom Group Inc.

$       (941.1)


$        448.0


$       (54.5)


$    1,480.6

Net Income Attributed To Noncontrolling Interests

43.2


30.9


98.2


93.4

Net Income (Loss)

(897.9)


478.9


43.7


1,574.0

Income From Equity Method Investments

1.2


2.3


7.7


6.9

Income Tax Expense (Benefit)

(131.3)


170.6


242.2


560.5

Income (Loss) Before Income Taxes and Income From Equity Method Investments

(1,030.4)


647.2


278.2


2,127.6

Interest Expense

81.3


65.0


263.4


247.9

Interest Income

28.1


26.9


96.9


100.9

Operating Income (Loss)

(977.2)


685.3


444.7


2,274.6

Add back: amortization of acquired intangible assets and internally developed strategic platform assets1

52.7


22.3


115.8


87.5

Earnings (Loss) before interest, taxes and amortization of intangible assets ("EBITA")1

$       (924.5)


$        707.6


$       560.5


$    2,362.1









Amortization of other purchased and internally developed software

3.9


4.7


15.8


18.1

Depreciation

41.7


33.3


145.1


136.1

EBITDA

$       (878.9)


$        745.6


$       721.4


$    2,516.3









EBITA1

$       (924.5)


$        707.6


$       560.5


$    2,362.1

Severance and repositioning costs2

1,123.3



1,247.0


57.8

Loss on disposition of subsidiary2

543.4



547.1


Acquisition related costs2

186.7


14.6


347.3


14.6

EBITA - Adjusted1,2

$        928.9


$        722.2


$    2,701.9


$    2,434.5









Revenue

$     5,528.8


$     4,322.2


$  17,271.9


$  15,689.1









Non-GAAP Measures:








EBITA1

$       (924.5)


$        707.6


$       560.5


$    2,362.1

EBITA Margin1

(16.7) %


16.4 %


3.2 %


15.1 %

EBITA - Adjusted1,2

$        928.9


$        722.2


$    2,701.9


$    2,434.5

EBITA Margin  - Adjusted1,2

16.8 %


16.7 %


15.6 %


15.5 %


1)  See Note 4 on page 13 for the definition of EBITA.

2)  See Note 3 on page 13.

The above table reconciles the Non-GAAP financial measures of EBITDA, EBITA, EBITA - Adjusted, EBITA Margin and EBITA Margin- Adjusted to the GAAP financial measure of Net Income- Omnicom Group Inc. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense of acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITA, EBITA Margin, EBITA - Adjusted, and EBITA Margin - Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year.

 

OMNICOM GROUP INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions)

 


Three Months Ended December 31,


Reported
2025


Non-GAAP
Adj.
(1)


Non-
GAAP
2025 Adj.



Reported
2024


Non-GAAP
Adj.
(1)


Non-
GAAP
2024 Adj.

Revenue

$ 5,528.8


$             —


$ 5,528.8



$ 4,322.2


$             —


$ 4,322.2














Operating Expenses1

6,506.0


(1,853.4)


4,652.6



3,636.9


(14.6)


3,622.3

Operating Income (Loss)

(977.2)


1,853.4


876.2



685.3


14.6


699.9

Operating Income Margin

(17.7) %




15.8 %



15.9 %




16.2 %



Full Year


Reported
2025


Non-GAAP
Adj.
(1)


Non-
GAAP
2025 Adj.



Reported
2024


Non-GAAP
Adj.
(1)


Non-
GAAP
2024 Adj.

Revenue

$17,271.9


$             —


$  17,271.9



$  15,689.1


$             —


$  15,689.1














Operating Expenses1

16,827.2


(2,141.4)


14,685.8



13,414.5


(72.4)


13,342.1

Operating Income

444.7


2,141.4


2,586.1



2,274.6


72.4


2,347.0

Operating Income Margin

2.6 %




15.0 %



14.5 %




15.0 %

 


Three Months Ended December 31,


Full Year


2025


2024


2025


2024


Net
Income

Net Income
per Share-
Diluted


Net
Income

Net Income
per Share-
Diluted


Net
Income

Net Income
per Share-
Diluted


Net
Income

Net Income
per Share-
Diluted

Net Income (Loss) - Omnicom Group Inc. - Reported

$ (941.1)

$         (4.02)


$   448.0

$           2.26


$   (54.5)

$         (0.27)


$  1,480.6

$           7.46

Severance and repositioning costs (after-tax)2

892.6

3.80



984.5

4.78


42.9

0.22

Loss on dispositions1

443.8

1.90



447.5

2.17


Acquisition related costs (after-tax)1,2

173.4

0.74


13.1

0.07


318.5

1.55


13.1

0.06

Amortization of acquired intangible assets and internally developed strategic platform assets (after-tax)2

39.0

0.17


16.5

0.08


85.7

0.42


64.7

0.32

Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3

$   607.7

$           2.59


$   477.6

$           2.41


$  1,781.7

$           8.65


$  1,601.3

$           8.06



1)

See Note 3 on page 13.

2)

Adjusted Net Income per Share - Diluted for the three months and year ended December 31, 2025 excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets, after-tax severance and repositioning costs, after-tax loss on disposition of subsidiaries and after-tax acquisition related costs. Adjusted Net Income per Share - Diluted for the three months and year ended December 31, 2024 excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets and after-tax acquisition related costs, and for the year ended December 31, 2024, also excludes after-tax severance and repositioning costs. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods.

3)

Weighted-average diluted shares for the three months ended December 31, 2025 and 2024 were 233.8 million and 198.4 million, respectively. Weighted-average diluted shares for the year ended December 31, 2025 and 2024 were 204.9 million and 198.6 million, respectively. The above tables reconcile the Non-GAAP financial measures of Non-GAAP Operating Income - Adjusted, Non-GAAP Net Income-Omnicom Group Inc. - Adjusted and Non-GAAP Adjusted Net Income per Share - Diluted to the GAAP financial measures of Operating Income, Net Income - Omnicom Group Inc. and Net Income per Share - Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year.

 

NOTES:


1)

Net Income and Net Income per Share for Omnicom Group Inc.

2)

See non-GAAP reconciliations starting on page 11.

3)

In 2025, operating expenses included $1.2 billion ($984.5 million after-tax) related to severance, real estate repositioning, contract cancellations and other costs, and $547.1 million ($447.5 million after-tax) of loss on dispositions of certain businesses in connection with the Merger as well as efficiency initiatives taken in the second quarter of 2025, primarily within Omnicom Advertising and Omnicom Production. Included in selling, general and administrative expenses are acquisition related costs of $347.3 million ($318.5 million after-tax), related to the Merger with IPG. The net impact of these items reduced operating income for 2025 by $2.1 billion ($1.8 billion after-tax) and reduced diluted net income per share - Omnicom Group Inc. by $8.50.


In 2024, operating expenses included $57.8 million ($42.9 million after-tax) of repositioning costs, primarily related to severance, recorded in the second quarter of 2024. Included in selling, general and administrative expenses in the fourth quarter of 2024 are acquisition related costs of $14.6 million ($13.1 million after-tax), related to the Merger with IPG. The net impact of these items reduced operating income for 2024 by $72.4 million ($56.0 million after-tax) and reduced diluted net income per share - Omnicom Group Inc. by $0.28.

4)

We define EBITA as earnings before interest, taxes and amortization of acquired intangible assets and internally developed strategic platform assets.

Cision View original content:https://www.prnewswire.com/news-releases/omnicom-reports-fourth-quarter-and-full-year-2025-results-302691987.html

SOURCE Omnicom Group Inc.

FAQ

What were Omnicom (OMC) fourth-quarter 2025 results for revenue and net income?

Omnicom reported $5.53 billion in revenue and a $941.1 million net loss for Q4 2025. According to the company, acquisition-related costs, repositioning charges and disposition losses drove the GAAP net loss.

How did Omnicom (OMC) perform on an adjusted basis in Q4 2025?

On a non-GAAP basis, Omnicom reported adjusted EBITA of $928.9 million (16.8% margin) for Q4 2025. According to the company, adjusted measures exclude acquisition, repositioning and disposition-related charges to aid comparability.

What does Omnicom's $5.0 billion share buyback authorization mean for OMC shareholders?

The board authorized a $5.0 billion buyback, including a $2.5 billion ASR, which could reduce share count and boost EPS over time. According to the company, the program accompanies cost-synergy and capital-allocation plans post-acquisition.

How did the Interpublic (IPG) acquisition affect Omnicom's 2025 financials (OMC)?

Omnicom included one month of IPG operations in 2025, which increased revenue and operating expenses. According to the company, IPG-related transaction, repositioning and disposition costs materially impacted GAAP operating income and taxes.

What major cost and synergy targets did Omnicom (OMC) announce for 2026?

Omnicom doubled its total cost synergy target to $1.5 billion, including $900 million expected in 2026. According to the company, these synergies are tied to portfolio alignment after the IPG acquisition.

Why did Omnicom's effective tax rate increase to 87.1% in 2025 and how does it affect OMC earnings?

The effective tax rate rose to 87.1% primarily because certain severance, repositioning and acquisition costs are not deductible in some jurisdictions. According to the company, this materially reduced GAAP net income for 2025.
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