Omnicom Reports Second Quarter 2026 Results
Rhea-AI Summary
Omnicom (NYSE: OMC) reported second quarter 2026 revenue of $6.6 billion, up $2.5 billion year over year, with Core Operations revenue of $6.0 billion, reflecting 6.1% organic growth and a 1.1% foreign currency benefit. Core Operations Adjusted EBITA rose to $1.07 billion, lifting margin to 17.8% from 15.9%, which Omnicom attributed mainly to cost-reduction synergies following the Interpublic (IPG) acquisition completed in November 2025.
Reported operating income increased to $922.5 million, and Adjusted EBITA reached $1.13 billion with a 17.2% margin. Diluted EPS was $2.08, while Non-GAAP Adjusted diluted EPS rose 29.3% to $2.65. Net income was $584.8 million, aided by a lower effective tax rate of 27.1%. Integration, severance and repositioning costs related to IPG totaled $87.1 million pre-tax, while net interest expense increased to $93.3 million, largely from debt assumed in the IPG transaction and 2026 refinancing.
Positive
- Core Operations organic revenue +6.1% to $6.0 billion
- Core Adjusted EBITA margin expanded to 17.8% from 15.9%
- Adjusted EBITA up $513.5 million to $1.13 billion, 17.2% margin
- Non-GAAP diluted EPS increased 29.3% to $2.65
- Net income rose $327.2 million to $584.8 million
- Effective tax rate declined to 27.1% from 30.2%
Negative
- Operating expenses increased $2.1 billion to $5.6 billion
- Net interest expense rose $52.6 million to $93.3 million
- Integration, severance and repositioning costs totaled $87.1 million pre-tax
- Diluted share count increased to 281.0 million from 196.0 million
News Explained
The completed IPG acquisition changed the ownership base: diluted weighted-average shares rose to
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 28 | 1Q26 earnings | Positive | -0.9% | Revenue and adjusted EBITA increased despite acquisition and integration costs. |
| Feb 18 | 4Q25 earnings | Positive | +15.4% | Adjusted EBITA improved while the company authorized a $5.0B share buyback. |
| Oct 21 | 3Q25 earnings | Positive | +3.2% | Organic growth and adjusted EPS increased despite acquisition-related operating costs. |
| Jul 15 | 2Q25 earnings | Positive | +4.6% | Revenue and organic growth increased, while adjusted EPS reached $2.05. |
| Apr 15 | 1Q25 earnings | Positive | -7.3% | Revenue and organic growth increased despite higher acquisition-related operating expenses. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-tagged events showed three aligned outcomes and two divergences, including a negative reaction to the prior quarter's positive results.
Key Terms
non-gaap financial
ebita financial
organic growth financial
adjusted ebitA financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
2026 Second Quarter - Core Operations:
- Revenue of
$6.0 billion 6.1% organic growth - Non-GAAP Adjusted EBITA of
$1.1 billion 17.8% margin
2026 Second Quarter - Reported:
- Revenue of
$6.6 billion - Diluted earnings per share of
$2.08 $2.65 29% - Operating Income of
$922.5 million $1.1 billion 17.2% margin
"Our second quarter results reflect the momentum of the new Omnicom. Revenue in our Core Operations grew
Second Quarter 2026 Results - Core Operations
Three Months Ended June 30, | |||||||||
$ in millions, except per share amounts | 2026 | 2025 | |||||||
Omnicom | Combined (OMC + IPG) | ||||||||
2026 | Less: | Core Operations | 2025 Combined | Less: | Core Operations | ||||
Revenue | $ 6,562.5 | $ 567.5 | $ 5,995.0 | $ 6,552.4 | $ 960.5 | $ 5,591.9 | |||
Adjusted EBITA | $ 1,127.3 | $ 58.5 | $ 1,068.8 | $ 1,007.5 | $ 120.1 | $ 887.4 | |||
Adj EBITA Margin | 17.2 % | 10.3 % | 17.8 % | 15.4 % | 12.5 % | 15.9 % | |||
See notes on pages 2 and 12. | |||||||||
Revenue from Core Operations
Revenue from Core Operations in the second quarter of 2026 increased
Revenue contribution by discipline as a percentage of revenue from Core Operations of
Revenue contribution by region as a percentage of revenue from Core Operations of
Adjusted EBITA from Core Operations
Adjusted EBITA from Core Operations in the second quarter of 2026 increased
Core Operations
Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG.
Second Quarter 2026 Results - Reported
$ in millions, except per share amounts | Three Months Ended June 30, | |||||||
Reported | Non-GAAP | Non-GAAP | Reported | Non-GAAP | Non-GAAP | |||
Revenue | $ — | $ — | ||||||
Operating Income | 922.5 | 87.1 | 1,009.6 | 439.2 | 154.8 | 594.0 | ||
Operating Income Margin | 14.1 % | 15.4 % | 10.9 % | 14.8 % | ||||
Net Income1 | 584.8 | 160.4 | 745.2 | 257.6 | 143.5 | 401.1 | ||
Net Income per Share - Diluted1 | $ 2.08 | $ 2.65 | $ 1.31 | $ 2.05 | ||||
Non-GAAP Measures:1 | ||||||||
EBITA | $ 87.1 | $ 459.0 | $ 154.8 | $ 613.8 | ||||
EBITA Margin | 15.9 % | 17.2 % | 11.4 % | 15.3 % | ||||
1) See notes on page 12. | ||||||||
Revenue
Revenue in the second quarter of 2026 increased
Expenses
Operating expenses increased
Salary and service costs increased
Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased
SG&A expenses increased
Operating Income
Operating income increased
Interest Expense, net
Net interest expense in the second quarter of 2026 increased
Income Taxes
Our effective tax rate for the second quarter of 2026 was
Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net Income - Omnicom Group Inc. for the second quarter of 2026 increased
Non-GAAP Adjusted Net Income per Share - Diluted for the second quarter of 2026 increased
EBITA
EBITA increased
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.
Core Operations: Revenue from Core Operations excludes businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG.
Organic growth: calculated by subtracting the foreign exchange rate impact from total revenue growth, which is equal to the current period revenue from Core Operations minus the prior period revenue from Core Operations.
Foreign exchange rate impact on core operations: 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
Percentage change: Calculated by dividing the individual component amount by the prior period Core Operations revenue base.
Conference Call
Omnicom will host a conference call to review its financial results on July 28, 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 and its proprietary data and identity, 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, principally 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 principally from 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., Adjusted Net Income per share – Omnicom Group Inc. - Diluted, and organic growth as additional operating performance measures. For 2025, we also used Combined Adjusted EBITA, which was calculated using the combined adjusted EBITA of Omnicom and IPG. 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 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 management as well as assumptions made by, and information currently available to 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 of 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 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 June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Revenue | $ 6,562.5 | $ 4,015.6 | $ 12,805.4 | $ 7,706.0 | ||||
Operating Expenses: | ||||||||
Salary and service costs | 4,713.3 | 2,932.6 | 9,352.9 | 5,678.9 | ||||
Occupancy and other costs | 504.4 | 325.9 | 1,031.7 | 640.5 | ||||
Severance and repositioning costs1 | 47.0 | 88.8 | 51.1 | 88.8 | ||||
Loss on disposition of subsidiaries1 | — | — | 34.3 | — | ||||
Cost of services | 5,264.7 | 3,347.3 | 10,470.0 | 6,408.2 | ||||
Selling, general and administrative expenses1 | 209.0 | 170.4 | 433.5 | 288.3 | ||||
Depreciation and amortization | 166.3 | 58.7 | 333.2 | 117.7 | ||||
Total Operating Expenses1 | 5,640.0 | 3,576.4 | 11,236.7 | 6,814.2 | ||||
Operating Income | 922.5 | 439.2 | 1,568.7 | 891.8 | ||||
Interest Expense | 123.2 | 62.6 | 242.2 | 121.7 | ||||
Interest Income | 29.9 | 21.9 | 76.9 | 51.6 | ||||
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 829.2 | 398.5 | 1,403.4 | 821.7 | ||||
Income Tax Expense1 | 224.8 | 120.5 | 379.4 | 241.2 | ||||
Income (Loss) From Equity Method Investments | 1.1 | (0.2) | 0.2 | 0.7 | ||||
Net Income1 | 605.5 | 277.8 | 1,024.2 | 581.2 | ||||
Net Income Attributed To Noncontrolling Interests | 20.7 | 20.2 | 34.2 | 35.9 | ||||
Net Income - Omnicom Group Inc.1 | $ 584.8 | $ 257.6 | $ 990.0 | $ 545.3 | ||||
Net Income Per Share - Omnicom Group Inc.:1 | ||||||||
Basic | $ 2.09 | $ 1.32 | $ 3.43 | $ 2.78 | ||||
Diluted | $ 2.08 | $ 1.31 | $ 3.41 | $ 2.77 | ||||
Dividends Declared Per Common Share | $ 0.80 | $ 0.70 | $ 1.60 | $ 1.40 | ||||
Operating income margin | 14.1 % | 10.9 % | 12.3 % | 11.6 % | ||||
Non-GAAP Measures:4 | ||||||||
EBITA2 | $ 1,040.2 | $ 459.0 | $ 1,803.8 | $ 933.4 | ||||
EBITA Margin2 | 15.9 % | 11.4 % | 14.1 % | 12.1 % | ||||
EBITA - Adjusted1,2 | $ 1,127.3 | $ 613.8 | $ 1,988.7 | $ 1,122.0 | ||||
EBITA Margin - Adjusted1,2 | 17.2 % | 15.3 % | 15.5 % | 14.6 % | ||||
Non-GAAP Adjusted Net Income Per Share - Omnicom Group Inc. - Diluted1,3 | $ 2.65 | $ 2.05 | $ 4.53 | $ 3.74 | ||||
1) | See Note 3 on page 12. |
2) | See Note 4 on page 12 for the definition of EBITA. |
3) | Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2026 and 2025 excludes after-tax amortization expense principally from 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 integration and acquisition costs related to the acquisition of IPG. We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods. |
4) | See Non-GAAP reconciliations starting on page 9. |
OMNICOM GROUP INC. AND SUBSIDIARIES DETAIL OF OPERATING EXPENSES (Unaudited) (In millions)
| |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenue | $ 6,562.5 | $ 4,015.6 | $ 12,805.4 | $ 7,706.0 | |||
Operating Expenses: | |||||||
Salary and service costs: | |||||||
Salary and related costs | 2,966.6 | 1,827.8 | 6,028.2 | 3,608.3 | |||
Third-party service costs1 | 1,522.4 | 918.4 | 2,888.1 | 1,715.2 | |||
Third-party incidental costs2 | 224.3 | 186.4 | 436.6 | 355.4 | |||
Total salary and service costs | 4,713.3 | 2,932.6 | 9,352.9 | 5,678.9 | |||
Occupancy and other costs | 504.4 | 325.9 | 1,031.7 | 640.5 | |||
Severance and repositioning costs3 | 47.0 | 88.8 | 51.1 | 88.8 | |||
Loss on disposition of subsidiaries3 | — | — | 34.3 | — | |||
Cost of services | 5,264.7 | 3,347.3 | 10,470.0 | 6,408.2 | |||
Selling, general and administrative expenses3 | 209.0 | 170.4 | 433.5 | 288.3 | |||
Depreciation and amortization | 166.3 | 58.7 | 333.2 | 117.7 | |||
Total operating expenses3 | 5,640.0 | 3,576.4 | 11,236.7 | 6,814.2 | |||
Operating Income | $ 922.5 | $ 439.2 | $ 1,568.7 | $ 891.8 | |||
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 12. |
OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions)
| |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Income - Omnicom Group Inc. | $ 584.8 | $ 257.6 | $ 990.0 | $ 545.3 | |||
Net Income Attributed To Noncontrolling Interests | 20.7 | 20.2 | 34.2 | 35.9 | |||
Net Income | 605.5 | 277.8 | 1,024.2 | 581.2 | |||
Income (Loss) From Equity Method Investments | 1.1 | (0.2) | 0.2 | 0.7 | |||
Income Tax Expense | 224.8 | 120.5 | 379.4 | 241.2 | |||
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 829.2 | 398.5 | 1,403.4 | 821.7 | |||
Interest Expense | 123.2 | 62.6 | 242.2 | 121.7 | |||
Interest Income | 29.9 | 21.9 | 76.9 | 51.6 | |||
Operating Income | 922.5 | 439.2 | 1,568.7 | 891.8 | |||
Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1 | 117.7 | 19.8 | 235.1 | 41.6 | |||
Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 | $ 1,040.2 | $ 459.0 | $ 1,803.8 | $ 933.4 | |||
Depreciation and other | 48.6 | 38.9 | 98.1 | 76.1 | |||
EBITDA | $ 1,088.8 | $ 497.9 | $ 1,901.9 | $ 1,009.5 | |||
EBITA1 | $ 1,040.2 | $ 459.0 | $ 1,803.8 | $ 933.4 | |||
Severance and repositioning costs2 | 47.0 | 88.8 | 51.1 | 88.8 | |||
Loss on disposition of subsidiaries2 | — | — | 34.3 | — | |||
Acquisition related costs2 | 40.1 | 66.0 | 99.5 | 99.8 | |||
EBITA - Adjusted1,2 | $ 1,127.3 | $ 613.8 | $ 1,988.7 | $ 1,122.0 | |||
Revenue | $ 6,562.5 | $ 4,015.6 | $ 7,706.0 | ||||
Non-GAAP Measures: | |||||||
EBITA1 | $ 1,040.2 | $ 459.0 | $ 1,803.8 | $ 933.4 | |||
EBITA Margin1 | 15.9 % | 11.4 % | 14.1 % | 12.1 % | |||
EBITA - Adjusted1,2 | $ 1,127.3 | $ 613.8 | $ 1,988.7 | $ 1,122.0 | |||
EBITA Margin - Adjusted1,2 | 17.2 % | 15.3 % | 15.5 % | 14.6 % | |||
1) See Note 4 on page 12. | |
2) See Note 3 on page 12. | |
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 principally from acquired intangible assets and internally developed strategic platform assets. Accordingly, we believe EBITDA, 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 - Combined (Unaudited) (In millions)
| |||||||||||
Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | ||||||||||
OMC | IPG | COMBINED | OMC | IPG | COMBINED | ||||||
Net Income - Omnicom Group Inc. | $ 257.6 | $ 162.5 | $ 420.1 | $ 545.3 | $ 77.1 | $ 622.4 | |||||
Net Income Attributed To Noncontrolling Interests | 20.2 | 1.1 | 21.3 | 35.9 | 1.2 | 37.1 | |||||
Net Income | 277.8 | 163.6 | 441.4 | 581.2 | 78.3 | 659.5 | |||||
Income (Loss) From Equity Method Investments | (0.2) | 0.2 | — | 0.7 | 0.1 | 0.8 | |||||
Income Tax Expense | 120.5 | 54.6 | 175.1 | 241.2 | 45.4 | 286.6 | |||||
Income Before Income Taxes and Income (Loss) From Equity Method Investments | 398.5 | 218.0 | 616.5 | 821.7 | 123.6 | 945.3 | |||||
Interest Expense | 62.6 | 50.5 | 113.1 | 121.7 | 100.6 | 222.3 | |||||
Interest Income | 21.9 | 24.8 | 46.7 | 51.6 | 22.5 | 74.1 | |||||
Other Expense, Net | — | 1.4 | 1.4 | — | 38.3 | 38.3 | |||||
Operating Income | 439.2 | 243.7 | 682.9 | 891.8 | 201.7 | 1,093.5 | |||||
Add back: amortization principally from acquired intangible assets and internally developed strategic platform assets1 | 19.8 | 21.1 | 40.9 | 41.6 | 41.5 | 83.1 | |||||
Earnings before interest, taxes and amortization of intangible assets ("EBITA")1 | $ 459.0 | $ 264.8 | $ 723.8 | $ 933.4 | $ 243.2 | ||||||
EBITA1 | $ 459.0 | $ 264.8 | $ 723.8 | $ 933.4 | $ 243.2 | ||||||
Severance and repositioning costs2 | 88.8 | 118.0 | 206.8 | 88.8 | 321.3 | 410.1 | |||||
Acquisition related costs2 | 66.0 | 10.9 | 76.9 | 99.8 | 15.7 | 115.5 | |||||
EBITA - Adjusted1,2 | $ 613.8 | $ 393.7 | $ 580.2 | ||||||||
Revenue | $ 12,565.4 | ||||||||||
Non-GAAP Measures: | |||||||||||
EBITA Margin - Adjusted1,2 | 15.4 % | 13.5 % | |||||||||
1) See Note 4 on page 12. | |
2) See Note 3 on page 12. | |
The above table reconciles the Non-GAAP financial measures of 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 principally from 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 June 30, | ||||||||||||
Reported | Non-GAAP | Non-GAAP | Reported | Non-GAAP | Non-GAAP | |||||||
Revenue | $ 6,562.5 | $ — | $ 6,562.5 | $ — | ||||||||
Operating Expenses1 | 5,640.0 | (87.1) | 5,552.9 | 3,576.4 | (154.8) | 3,421.6 | ||||||
Operating Income | 922.5 | 87.1 | 1,009.6 | 439.2 | 154.8 | 594.0 | ||||||
Operating Income Margin | 14.1 % | 15.4 % | 10.9 % | 14.8 % | ||||||||
Six Months Ended June 30, | ||||||||||||
Reported | Non-GAAP | Non-GAAP | Reported | Non-GAAP | Non-GAAP | |||||||
Revenue | $ — | $ 12,805.4 | $ — | |||||||||
Operating Expenses1 | 11,236.7 | (184.9) | 11,051.8 | 6,814.2 | (188.6) | 6,625.6 | ||||||
Operating Income | 1,568.7 | 184.9 | 1,753.6 | 891.8 | 188.6 | 1,080.4 | ||||||
Operating Income Margin | 12.3 % | 13.7 % | 11.6 % | 14.0 % | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||
Net | Net Income | Net | Net Income | Net | Net Income | Net | Net Income | ||||
Net Income - Omnicom Group Inc. - Reported | $ 2.08 | $ 1.31 | $ 3.41 | $ 2.77 | |||||||
Severance and repositioning costs (after-tax)2 | 35.3 | 0.13 | 67.2 | 0.34 | 38.3 | 0.13 | 67.2 | 0.34 | |||
Loss on disposition of subsidiaries1 | — | — | — | — | 27.8 | 0.10 | — | — | |||
Acquisition related costs (after-tax)1,2 | 38.0 | 0.13 | 61.6 | 0.32 | 84.8 | 0.29 | 94.3 | 0.48 | |||
Amortization expense (after-tax)2 | 87.1 | 0.31 | 14.7 | 0.08 | 174.0 | 0.60 | 30.8 | 0.15 | |||
Non-GAAP Net Income - Omnicom Group Inc. - Adjusted2,3 | $ 2.65 | $ 2.05 | $ 1,314.9 | $ 4.53 | $ 3.74 | ||||||
1) | See Note 3 on page 12. |
2) | Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2026 excludes after-tax amortization expense principally from 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 integration costs related to the acquisition of IPG. We believe these measures are useful in evaluating the impact of these items on operating performance and allow for comparability between reporting periods. Adjusted Net Income per Share - Diluted for the three and six months ended June 30, 2025 excludes after-tax amortization expense principally from acquired intangible assets and internally developed strategic platform assets and after-tax integration costs related to the acquisition of IPG. |
3) | Weighted-average diluted shares for the three months ended June 30, 2026 and 2025 were 281.0 million and 196.0 million, respectively. Weighted-average diluted shares for the six months ended June 30, 2026 and 2025 were 290.2 million and 197.1 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 9. |
3) | For the three and six months ended June 30, 2026, operating expenses included |
For both the three and six months ended June 30, 2025, operating expenses included | |
4) | We define EBITA as earnings before interest, taxes and amortization, principally of acquired intangible assets and internally developed strategic platform assets. |
5) | Combined (OMC + IPG) represents combined results from Omnicom and IPG as previously reported on a separate company basis during the prior year period. Combined results exclude pro-forma adjustments included in our results for Core Operations. See Note 6 below. |
6) | Core Operations: calculated from the consolidated revenue, adjusted operating income and adjusted EBITA of Omnicom, excluding businesses that have been disposed of or are classified as held for sale. Amounts for 2025 are calculated on a combined basis for Omnicom and IPG. |
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SOURCE Omnicom Group Inc.