Omnicom's lack of surprises in its 2025 earnings is both a good and bad thing

"It was wise of Omnicom to report its fourth-quarter and full-year 2025 earnings after the market closed on Wednesday, since its stock gained in after-hours trading - unlike Publicis, which got walloped by traders after its quite positive financial results. However, its results were neither spectacularly good nor terribly bad, with 2025 revenue up 10%, thanks in part to including one month of revenue from Interpublic Group, which it finished absorbing at the end of November. Foreign exchange values also goosed the revenue by $125 million, bringing total revenue for the year to $17.3 billion."

"Clearly principal media will be a bigger factor in Omnicom's future, as the company's earnings pointed out costs related to principal (but also including other factors) went up 23%. "Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party service costs increased $765.1 million, or 22.8%, to $4.1 billion, primarily due to growth in our Media & Advertising and Experiential disciplines and the effects of including one month of operations of IPG," read a passage in Omnicom's released results statement."

"There were some surprises, though, principally the $5 billion share buyback that Omnicom CEO John Wren announced. Analysts generally see that as "bullish," as Ruben Schreurs, CEO of Ebiquity put it. "I wouldn't have expected the board and the shareholders to approve this, but it's a strong signal." That's going to require some serious performance from what is now the world's largest agency holding company."

Omnicom reported fourth-quarter and full-year 2025 revenue up 10% to $17.3 billion, helped by one month of Interpublic Group revenue and $125 million from foreign exchange. Media & Advertising represented 58% of revenue and U.S. operations produced 52%. Margins fell overall but remained just over 15% when adjusted for the IPG acquisition. Principal-related and third-party service costs rose substantially—third-party costs increased $765.1 million to $4.1 billion, up 22.8%—driven by Media & Advertising, Experiential growth and the inclusion of IPG. The company announced a $5 billion share buyback, interpreted as a bullish signal by analysts, increasing pressure for strong performance.

Read at Digiday