Interpublic Group Earnings Beat Estimates in Q2, Revenues Slide Y/Y

The Interpublic Group of Companies, Inc. IPG has reported impressive second-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year and outpaced the Zacks Consensus Estimate of $2.2 billion.

IPG shares have lost 14.3% in the year-to-date period compared with the 30% decline of the industry it belongs to and against the Zacks S&P 500 composite’s rise of 6.5%.

Interpublic Group's Q2 Operating Results

The operating income in the quarter was $243.7 million, down 30.6% from the year-ago actuals. The metric missed our estimate of $361.5 million.

Adjusted EBITA was $264.8 million, decreasing 27.9% on a year-over-year basis and missing our projection of $381.1 million. The adjusted EBITA margin on net revenues was 12.2%, down 240 basis points from the year-ago quarter. The figure missed our estimation of 16.8%.

Balance Sheet & Cash Flow of IPG

Interpublic Group ended the quarter with a cash and cash equivalent balance of $1.6 billion compared with $1.9 billion in the previous quarter. Total debt was $3 billion, flat with the preceding quarter.

The company paid out a common stock cash dividend of 33 cents per share for $121.1 million.

Interpublic Group's 2025 Guidance

IPG expects 2025 organic net revenues to grow 1-2% year over year. The adjusted EBITA margin is anticipated to surpass the 16.6% registered in the preceding quarter.

Interpublic Group flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Snapshots

Paychex, Inc. PAYX reported impressive fourth-quarter fiscal 2025 results.

PAYX’s fiscal fourth-quarter earnings of $1.19 per share beat the Zacks Consensus Estimate by a slight margin and increased 6.3% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and gained 10% from the year-ago quarter.

Accenture plc ACN posted impressive third-quarter fiscal 2025 results.

ACN’s earnings were $3.49 per share, beating the Zacks Consensus Estimate by 5.8%. The metric increased 11.5% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 2.6% and rose 7.7% on a year-over-year basis.

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

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