Omnicom Group Stock Barely Moves Since Q2 Earnings Beat

Omnicom Group Inc. OMC reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate but failed to impress the market.

The stock has barely moved since the company released results on July 15.

Earnings of $2.05 per share beat the consensus estimate by 1.5% and increased 5.13% year over year. Total revenues of $4 billion surpassed the consensus estimate by 1.6% and rose 4.2% year over year. The increase in the top line was led by a jump of 3% in revenues from organic growth.

Omnicom Group Inc. Price, Consensus and EPS Surprise

Omnicom Group Inc. price-consensus-eps-surprise-chart | Omnicom Group Inc. Quote

Omnicom shares have declined 22.1% over the past year compared with a 31% decrease in the industry it belongs to and the 13.8% rise of the Zacks S&P 500 composite.

OMC’s Organic Growth Across Disciplines and Regions

Across fundamental disciplines, revenues from Advertising & Media increased 8.2% organically compared with our estimated growth of 7.5%. Precision marketing revenues jumped 5% compared with our estimate of 5.1% growth. Experiential revenues gained 2.9% compared with our expectation of 15.1% growth.

Public Relations revenues decreased 9.3% compared with our estimation of 2.9% growth. Healthcare revenues dropped 4.9% year over year organically compared with our estimated decline of 1.5%. Branding & Retail Commerce revenues were down 16.9% compared with our estimated decline of 8.2%. Execution and support increased 1.5% versus our estimated growth of 1.4%.

Across regional markets, year-over-year organic revenue growth was 3% in the United States, 2.5% in Euro Markets & Other Europe, 18% in Latin America and 6.5% in Asia Pacific. Middle East & Africa revenues gained 0.9%. Other North America revenues improved 2.4%, and U.K. revenues declined 2.5%, respectively.

OMC’s Margin Performance

Adjusted EBITA in the quarter came in at $613.8 million, up 4.1% year over year. Adjusted EBITA margin was 15.3%, flat year over year. The operating profit of $439.2 million decreased 14% year over year. The operating margin declined 230 bps to 10.9%.

OMC’s Zacks Rank and Other Stocks to Consider

Omnicom currently carries a Zacks Rank #2 (Buy).

Here are a few other stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season:

Veralto Corporation VLTO: The Zacks Consensus Estimate for the company’s second-quarter 2025 revenues is pegged at $1.34 billion, indicating a 4.3% rise year over year. For earnings, the consensus mark is pegged at 89 cents per share, implying a 4.7% increase from the year-ago quarter’s figure. The company beat the consensus estimate in each of the past four quarters, with an average earnings surprise of 6.4%. (See Zacks Earnings Calendar to stay ahead of market-making news.)

VLTO currently has an Earnings ESP of +1.55% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

APi Group APG: The Zacks Consensus Estimate for the company’s second-quarter 2025 revenues is pegged at $1.90 billion, implying a 9.7% rise year over year. For earnings, the consensus mark is pegged at 37 cents per share, indicating a 12.1% increase from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the trailing four quarters and met the mark on the remaining occasion, with an average earnings surprise of 4.1%.

APG currently has an Earnings ESP of +2.05% and a Zacks Rank of 1.

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This article originally published on Zacks Investment Research (zacks.com).

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