TSX runs higher on rate cut expectations
Investing.com -- Omnicom Group Inc (NYSE:OMC) reported better-than-expected second-quarter earnings, helped by a 3% rise in organic revenue and continued demand across its advertising and marketing services, despite a challenging economic backdrop.
Shares of Omnicom rose marginally in premarket trading Wednesday.
The New York-based agency holding company reported earnings per share of $2.05, topping analysts’ average estimate of $2.02.
Revenue rose to $4.02 billion from $3.61 billion a year earlier, beating the consensus forecast of $3.97 billion.
CEO John Wren said the results reflected Omnicom’s resilience and the benefits of its Omni operating platform, which integrates data and AI tools across client campaigns to improve efficiency and outcomes.
Wren also updated progress on the company’s proposed acquisition of Interpublic Group, saying Omnicom had cleared U.S. antitrust review and was on track to complete the deal later this year.
Looking ahead, Omnicom reiterated its 2025 guidance for 2.5% to 4.5% organic sales growth and a 10 basis point margin improvement.
"We think the bottom-end is more plausible in light of H1 and ongoing macro volatility," Bank of America analysts led by Adrien de Saint Hilaire said.
"Omnicom 2Q25 results were pretty much in line with expectations and the guidance was fully repeated. Given recent severe profit warning from peer WPP (LON:WPP), this should at least reassure that the macro backdrop isn’t sharply deteriorating," they noted.
The bank raised its 2025–2027 non-GAAP EPS estimates by 3%, citing slightly stronger organic growth, favorable FX, and lower interest costs.
However, the analysts added that investor concerns are likely to persist, as reflected in the stock’s muted reaction, until Omnicom and its peers can clearly show that AI does not pose a structural risk to their business model.
(Additional reporting by Vahid Karaahmetovic.)