Stock market today: S&P 500 falls as government shutdown, trade jitters persist
Investing.com -- French advertising giant Publicis Groupe SA (EPA:PUBP) on Tuesday reported organic growth of 5.7% in the third quarter of 2025, exceeding analyst expectations of 5.1% as the company continues to benefit from strong demand for its AI-powered services and products.
The French advertising and communications giant saw acceleration in the U.S. market, where organic growth reached 7.1%. The company cited no material cuts in marketing spend and instead experienced increased demand for its AI-led offerings.
Following the strong performance, Publicis has upgraded its full-year 2025 organic growth guidance to between 5.0% and 5.5%, up from its previous forecast of "close to 5%".
All key regions performed well during the quarter, with the U.S. market accelerating to 7.1% growth. The company’s AI-powered model has helped it widen the gap with competitors by approximately 700 basis points, according to consensus estimates.
"We are demonstrating that artificial intelligence at Publicis is not a future promise, it is a reality today that is driving our growth," said Arthur Sadoun, Chairman and CEO of Publicis Groupe. "Not only did we not experience any material cuts in marketing spend, but we also saw an acceleration in demand for our AI-led products and services."
The company’s Connected Media activities, powered by Epsilon, grew at high single digits as clients sought solutions connecting paid media with commerce and influencer marketing through AI. Its AI production platform achieved double-digit growth due to increasing demand for personalized content, while Publicis Sapient remained in positive territory for the second consecutive quarter.
Barclays said Publicis has recently stood out as a clear leader in organic growth and net new business wins, a trend reflected again in its Q3 performance. The bank expects this operational strength to persist for at least the next 12 months based on recent contract gains.
"We would also argue that Publicis’ country P&L organisation is a competitive advantage when AI will make the historical agencies’ service silos a hindrance to deliver what advertisers need," Barclays said in a note.
"Their focus on M&A rather than cash return means that they can potentially stay ahead of competition by investing in the next wave of services (granted, they need to buy wisely and the returns remain questionable vs. buybacks owing to the high multiples paid)."
Looking ahead to 2026, Publicis expects to outperform the industry for the seventh consecutive year, supported by strong new business momentum. Net new billings for the first nine months of 2025 have already reached the company’s full-year 2024 total.