Publicis lifts growth forecast after ’unprecedented new business run’ in H1

Published 17/07/2025, 08:14
Updated 17/07/2025, 08:16
© Reuters.

Investing.com -- Publicis Groupe (EPA:PUBP) raised its full-year organic growth outlook after delivering stronger-than-expected results in the second quarter of 2025. The French advertising group now expects organic growth to be “close to 5%,” up from its previous guidance of between 4% and 5%.

The revision follows a 5.9% increase in second-quarter organic net revenue, ahead of the 4.6% consensus estimate and an improvement from 4.9% growth in the first quarter.

For the first half (H1) of the year, organic growth reached 5.4%.

Adjusted EBIT for the first half came in at €1.24 billion, representing a margin of 17.4%, slightly higher year-on-year and in line with expectations.

Publicis said it continued to gain market share, supported by what it called an “unprecedented new business run” in the first half, with key client wins including Coca-Cola (NYSE:KO), Nespresso, Lego, Paramount (NASDAQ:PARA), and Spotify (NYSE:SPOT). The company secured $5.2 billion in net new business over the period.

"We think the shares will be up low to mid single digits % today," Morgan Stanley (NYSE:MS) analysts said in a note. The bank expects analysts to raise their forecasts for Publicis following the strong performance.

Publicis’ revenue rose 10% in the second quarter, with growth seen across all major regions: 5.3% in the U.S., 4.6% in Europe, and 5.7% in Asia-Pacific.

“We did not see any deterioration among our customers between the first and second quarters,” CEO Arthur Sadoun said. “The feeling of uncertainty is still there, but it has not materialized in cuts that could have had a real impact on our organic growth.”

However, Sadoun warned the second half may be more difficult, with potential reductions in client spending “particularly at the end of the year.” He also noted that sales in the Sapient unit are likely to be slightly lower this year, as clients are hesitant to commit to major transformation projects.

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