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Investing.com -- Omnicom Group Inc (NYSE:OMC) reported first-quarter 2025 results that beat earnings expectations but fell short on revenue, as the advertising and marketing services company navigates an uncertain economic environment.
The company posted adjusted earnings per share of $1.70, surpassing the analyst consensus estimate of $1.66. However, revenue came in at $3.69 billion, below the $3.72 billion analysts had projected.
Omnicom’s organic revenue growth for the quarter was 3.4% YoY. The company saw strong performance in its Media & Advertising segment, which grew 7.2% organically, and Precision Marketing, up 5.8%. This was partially offset by declines in other areas like Public Relations and Healthcare.
"While uncertainty has increased, one thing hasn’t changed and will always be true – Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance," said John Wren, Chairman and CEO of Omnicom.
The company’s operating income decreased 5.5% to $452.6 million, with operating margin falling to 12.3% from 13.2% in the year-ago quarter. This decline was partly due to $33.8 million in costs related to Omnicom’s pending acquisition of Interpublic Group.
Omnicom’s stock showed no significant movement in after-hours trading following the earnings release, suggesting investors view the results as largely in-line with expectations despite the mixed performance versus estimates.
Looking ahead, Omnicom said it is assessing how economic and market events will affect its business for the remainder of 2025. The company expects to close its acquisition of Interpublic Group in the second half of the year, which it believes will drive revenue growth and cost synergies.