Omnicom Group (NYSE:OMC) Announces Quarterly Earnings Results

Omnicom Group (NYSE:OMC) announced its quarterly earnings results on Wednesday. The business services provider reported $2.59 EPS for the quarter, missing the consensus estimate of $2.94 by ($0.35), Zacks reports. The company had revenue of $5.53 billion during the quarter, compared to analysts’ expectations of $7.58 billion. Omnicom Group had a return on equity of 33.30% and a net margin of 8.31%.The firm’s revenue for the quarter was up 27.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.41 EPS.

Here are the key takeaways from Omnicom Group’s conference call:

• The company closed the acquisition of Interpublic and has launched a unified operating model and next?generation Omni platform (integrating Acxiom Real ID and Flywheel Commerce Cloud), with a retained portfolio generating $23.1 billion of revenue and strong liquidity (cash and short?term investments of $6.9 billion plus a $3.5 billion undrawn revolver).
• Management is realigning the portfolio and plans to sell/exit ~$2.5 billion of annual revenue (already disposed >$800 million) and move ~$700 million of smaller?market revenue to minority ownership, with remaining transactions expected over the next 12 months.
• Synergies were increased to a target of $1.5 billion annual run rate over ~30 months (up from $750 million), with $900 million expected in 2026 and major drivers including ~$1.0 billion in labor savings, $240 million in real estate, and $260 million in GNA/IT/procurement.
• The board authorized a $5 billion share repurchase program and launched a $2.5 billion accelerated share repurchase today, expecting to reduce shares outstanding ~9–11% by end?2026 (weighted average down ~7–8%), while maintaining an increased quarterly dividend of $0.80.
• Q4 included significant one?time charges—$1.1 billion severance/repositioning, $543 million loss on planned dispositions, and $187 million acquisition costs—while net interest expense is expected to rise by ~$210 million in 2026 due to assumed IPG debt and refinancing (pro?forma leverage ~2.4x).

Omnicom Group Stock Up 3.3%

NYSE OMC traded up $2.21 on Wednesday, hitting $70.19. 6,430,113 shares of the stock were exchanged, compared to its average volume of 4,329,028. The company has a quick ratio of 0.80, a current ratio of 0.92 and a debt-to-equity ratio of 0.95. The company has a 50-day moving average price of $77.16 and a 200-day moving average price of $76.30. The company has a market cap of $13.55 billion, a PE ratio of 10.37, a PEG ratio of 1.08 and a beta of 0.74. Omnicom Group has a fifty-two week low of $66.33 and a fifty-two week high of $89.27.

Omnicom Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 19th were paid a $0.80 dividend. This is an increase from Omnicom Group’s previous quarterly dividend of $0.70. This represents a $3.20 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date was Friday, December 19th. Omnicom Group’s payout ratio is presently 47.27%.

More Omnicom Group News

Here are the key news stories impacting Omnicom Group this week:

• Positive Sentiment: Board approved a $5.0 billion share repurchase program and executed $2.5 billion of accelerated share repurchases (ASRs), which increases near?term buyback support for the stock. Omnicom Announces $5 Billion Repurchase Program
• Positive Sentiment: Large institutional buying in Q4 (major additions from Vanguard, BlackRock, State Street and others) suggests strong institutional conviction behind the stock. QuiverQuant Institutional Activity
• Positive Sentiment: Strategic/operational highlights: Omnicom’s AI initiatives (Omni platform) and recent recognition as a Forrester leader are being cited as growth drivers and support longer?term revenue/efficiency upside. Yahoo — Forrester & AI Highlights
• Neutral Sentiment: Omnicom reported Q4 revenue of about $5.5B and EPS of $2.59 (company slides and press release available); the company also provided a slide deck and commentary on integration progress. Investors should review the release for GAAP vs. adjusted detail. Q4 Press Release / Slide Deck
• Neutral Sentiment: Company commentary emphasizes integration progress across recent acquisitions and Omni+ tech investments — a longer?term positive but not an immediate earnings fix. TipRanks — Integration Progress
• Negative Sentiment: Zacks notes the quarter missed consensus on EPS (reported $2.59 vs. Zacks estimate $2.94), which can pressure near?term analyst expectations and sentiment. Zacks — EPS Miss
• Negative Sentiment: GAAP and some adjusted metrics from third?party reports show a Q4 net loss (roughly $0.9B) and material adjusted operating/loss figures — these accounting items and mixed earnings metrics create short?term uncertainty until management clarifies drivers. QuiverQuant — Q4 Financial Details

Analyst Ratings Changes

OMC has been the topic of a number of recent research reports. Bank of America restated an “underperform” rating and set a $77.00 price target (down previously from $87.00) on shares of Omnicom Group in a research note on Monday, January 5th. Morgan Stanley assumed coverage on shares of Omnicom Group in a research report on Tuesday, December 16th. They set an “equal weight” rating and a $88.00 target price on the stock. UBS Group increased their price objective on Omnicom Group from $99.00 to $108.00 and gave the company a “buy” rating in a report on Friday, December 5th. Barclays upped their target price on Omnicom Group from $80.00 to $82.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 23rd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Omnicom Group in a research report on Thursday, January 22nd. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $92.14.

Institutional Trading of Omnicom Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in OMC. State Street Corp raised its holdings in Omnicom Group by 40.4% in the fourth quarter. State Street Corp now owns 23,676,768 shares of the business services provider’s stock valued at $1,933,891,000 after buying an additional 6,813,441 shares during the period. Wellington Management Group LLP increased its position in shares of Omnicom Group by 522.9% in the fourth quarter. Wellington Management Group LLP now owns 5,199,477 shares of the business services provider’s stock worth $419,858,000 after acquiring an additional 4,364,797 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Omnicom Group by 186.4% in the 4th quarter. AQR Capital Management LLC now owns 3,705,816 shares of the business services provider’s stock valued at $299,245,000 after acquiring an additional 2,412,077 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Omnicom Group by 86.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,820,978 shares of the business services provider’s stock valued at $389,291,000 after acquiring an additional 2,233,717 shares in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new position in shares of Omnicom Group during the 4th quarter valued at $124,393,000. Institutional investors and hedge funds own 91.97% of the company’s stock.

Omnicom Group Company Profile

Omnicom Group Inc (NYSE: OMC) is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company’s primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.