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Investing.com -- Ipsos shares fell 3.5% after the market research company lowered its full-year 2025 organic growth guidance despite reporting better-than-expected third-quarter results.
The company reported organic growth of 2.9% in the third quarter, slightly above forecasts of 2.7%, showing an acceleration on a six-year 2019-2025 CAGR basis from 3.3% to 3.4%.
The Americas region was the strongest performer with 4.3% growth. The U.S. market outperformed under new management, growing 3% through the first nine months of the year compared to 1.2% for The Americas overall. This U.S. growth came despite a 15% decline in Public Affairs in that region, thanks to strong activity from consumer packaged goods clients and improved performance among healthcare clients.
By business segment, most activities improved sequentially in the third quarter. The Consumer division, which represents about 50% of group sales, saw growth accelerate from 1.6% in the second quarter to 4.9%. The Healthcare segment showed a slight slowdown, with growth of 4.4% in Q3 compared to 5.2% in Q2. Public Affairs continued to decline but at a slower rate, improving from -8.7% in Q2 to -4.7% in Q3.
Despite these positive results, Ipsos reduced its full-year 2025 organic growth guidance from "1%+" to +0.7%, compared to 1.3% achieved in fiscal year 2024. The company cited delays caused by the U.S. government shutdown and spending pressures in other markets including France and the UK.
The guidance reduction appears to be based on recent developments, as Ipsos was still confident about meeting its previous 1%+ guidance during a conference in mid-September. The company reported a weaker order book in September, primarily affecting Public Affairs business in the U.S., France, and Australia/New Zealand.
The revised outlook implies organic growth of approximately 0.5% in the fourth quarter alone, down from previous forecasts of 2.2%. Despite lowering its growth guidance, Ipsos maintained its full-year 2025 margin guidance at around 12.4%, or 13% excluding the impact from the first-time consolidation of lower-margin BVA Family.
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