Omnicom third-quarter revenue rises to $6.4 billion, primarily from the IPG acquisition

Omnicom Group Inc. (OMC) said Thursday in a regulatory filing that third-quarter revenue rose to $6.4 billion, up from $4.0 billion a year earlier. The results cover the three months ended Sept. 30, 2026, and were furnished with an earnings release.

Net income attributable to the company was $656.0 million, or $2.38 per diluted share, compared with $341.3 million, or $1.75 per diluted share, a year earlier.

Here's how the company did:

• Revenue: $6,422.8 million vs. $4,037.1 million a year earlier
• Diluted earnings per share: $2.38 vs. $1.75 a year earlier
• Adjusted diluted earnings per share: $2.73 vs. $2.24 a year earlier
• Operating income: $991.7 million vs. $530.1 million a year earlier

For the nine months, revenue was $19.2 billion, up from $11.7 billion, and diluted earnings per share were $5.77, compared with $4.51. Adjusted diluted earnings per share were $7.25, up from $5.98.

The adjusted figures exclude amortization, repositioning and integration costs, and gains or losses on dispositions. The company said they are meant to allow comparisons between reporting periods.

Core operations

Revenue from core operations, which excludes businesses sold or held for sale, rose $407.4 million, or 7.3%, to $6.0 billion. The combined prior-year figure was $5.6 billion.

Organic growth was $400.8 million, or 7.2%. Foreign currency translation added $3.4 million, or 0.1%.

Adjusted EBITA from core operations increased $191.1 million, or 21.1%, to $1.1 billion. EBITA is earnings before interest, taxes and amortization, principally of acquired intangible assets and internally developed strategic platform assets.

The margin widened to 18.2% from 16.2%. The company attributed the gain primarily to cost reduction synergies and organic revenue growth.

Chairman and Chief Executive Officer John Wren said the company is “on track to deliver $900 million in cost-reduction synergies in 2026.”

Wren also said: “With our integration nearly complete and our portfolio of companies and operations streamlined, we’re focused on high-demand services and are well positioned to pursue future growth.”

Costs and charges

Operating expenses rose $1.9 billion to $5.4 billion, primarily because of the acquisition of The Interpublic Group of Companies, Inc. (IPG), which closed Nov. 26, 2025.

Salary and service costs rose $1.7 billion to $4.6 billion. Occupancy and other costs increased $176.6 million to $499.3 million.

Operating income rose $461.6 million to $991.7 million, and the operating margin was 15.4%.

The quarter included $84.7 million of repositioning costs, primarily for real estate and other exit charges, and $40.4 million of integration and transaction costs related to IPG.

A $106.8 million gain on the disposition of a subsidiary offset part of those charges. The company excluded the gain from its adjusted results.

Net interest expense rose $61.0 million to $104.2 million, primarily because of debt assumed in the IPG acquisition and refinancing in the first quarter of 2026.

The effective tax rate was 24.3%, compared with 27.2% a year earlier. The company said the 2026 rate included favorable settlements of uncertain tax positions.

Weighted-average diluted shares rose to 275.4 million from 194.9 million, primarily from shares issued for IPG. Net share repurchases, including shares bought under an accelerated stock repurchase agreement, partly offset the increase.

Cash, debt and dividends

Free cash flow for the nine months was $2,353.2 million, up from $1,323.6 million. On a stand-alone basis, stock repurchases reached $3,210.3 million for the period, compared with $312.1 million a year earlier, according to the investor presentation.

Total debt was $10,018.3 million at Sept. 30, up from $6,299.3 million a year earlier. Cash and equivalents were $3,796.4 million, leaving net debt of $6,221.9 million. Net debt was 2.9 times EBITDA over the trailing twelve months, against 1.2 times a year earlier.

The company declared $0.80 per common share in the quarter, up from $0.70 a year earlier.

The investor presentation said portfolio optimization designed for future client needs is substantially complete. It said the company expects to conclude the few remaining dispositions in the near term.

The filing did not include new full-year guidance. The company also furnished an investor presentation and held an earnings call on Oct. 22 starting at 4:30 p.m. Eastern Time.