Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
In response to the better-than-expected results, the stock has moved 3.2% north since the earnings release on Oct. 21.
Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a jump of 2.6% 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
However, Omnicom shares have declined 19.1% over the past year compared with a 25.1% decrease in the industry it belongs to and the 18.1% rise of the Zacks S&P 500 composite.
OMC’s Organic Growth Across Disciplines and Regions
Across fundamental disciplines, revenues from Advertising & Media increased 9.1% organically compared with our estimated growth of 8.7%. Precision marketing revenues jumped 0.8% compared with our estimate of 6.7% growth. Experiential revenues gained 17.7% compared with our expectation of 12.2% growth.
Public Relations revenues decreased 7.5% compared with our estimation of 1.3% growth. Healthcare revenues dropped 1.9% year over year organically compared with our estimated decline of 34.1%. Branding & Retail Commerce revenues were down 16.9% compared with our estimated decline of 10.3%. Execution and support increased 2% versus our estimated growth of 2.5%.
Across regional markets, year-over-year organic revenue growth was 4.6% in the United States and 27.3% in Latin America. Revenues gained 5.9% in the Middle East & Africa and 3.7% in the U.K.
Revenues decreased 2.4% in Other North America, 2.5% in the U.K., 3.1% in Euro Markets & Other Europe, and 3.7% in Asia Pacific.
OMC’s Margin Performance
Adjusted EBITA in the quarter came in at $651 million, up 4.6% year over year. The adjusted EBITA margin was 16.1%, compared with 16% in the year-ago quarter. The operating profit of $530.1 million decreased 11.7% year over year, with the operating margin declining 240 bps to 13.1%.
OMC’s Zacks Rank
Omnicom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Releases
Paychex, Inc. (PAYX) reported impressive first-quarter fiscal 2026 results.
PAYX’s fiscal first-quarter earnings of $1.22 per share beat the Zacks Consensus Estimate by a slight margin and increased 5.2% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by a slight margin and gained 16.8% from the year-ago quarter.
FactSet (FDS) reported mixed results for fourth-quarter fiscal 2025.
FDS’s earnings per share of $4.05 missed the consensus mark by 2.4% but increased 8.3% from the year-ago quarter. Revenues of $596.9 million beat the Zacks Consensus Estimate by a slight margin and 6.2% from the year-ago quarter.
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Paychex, Inc. (PAYX): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report FactSet Research Systems Inc. (FDS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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