OMC US S&P 500Russell 1000 Earnings call · transcribed from the recording

Omnicom Group (OMC) · Q3 2026 results and valuation

Share price: $88.88 · 2026-11-11

Omnicom Group is a strategic holding company that provides marketing, sales, communications, and commerce services to large global companies. The company operates through a network of agencies providing media, content, and branding solutions across the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Source: 10-K annual report (2026-02-20)

Results Q3 2026 vs Q2 2026 · previous quarter · published 22 Oct 2026 and 28 Jul 2026

Net income up 12.2% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.

1 · Numbers

+12.2%

Net income vs Q2 2026

Outlook given

Net income 656.0M vs 584.8M

Revenue −2.1%

Against the same quarter last year (Q3 2025) it is +92.2%, so it is not just seasonal.

Why Non-GAAP adjusted diluted EPS grew 22% to $2.73 per share from $2.24 per share last year due to an increase in adjusted net income.

2 · How management spoke

Typical

Less upbeat than 56% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Omnicom Group updated its guidance to estimate that full year 2026 organic core revenue growth will be approximately 5% based on strong year-to-date results.

Valuation

Is Omnicom Group undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 6.5% growth a year (3-year revenue growth), the model's fair value is $190.75 a share — the stock trades 53% below it. Today's price assumes −5.2% growth a year.

Current price

$88.88

close of 2026-11-11

Market implies growth of i

-5.2% for 10 yrs

Fair value / share

$190.75

Buy below

$143.06

Price vs fair value

Undervalued 53%

Price vs buy-below price

Undervalued 38%

Management expects

Revenue +5% · from the Q3 2026 report: “OMC updated its guidance to estimate that full year 2026 organic core revenue growth will be approximately 5% based on strong year-to-date results.”

A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

OMC updated its guidance to estimate that full year 2026 organic core revenue growth will be approximately 5% based on strong year-to-date results.

Source quote
“We plan to repurchase additional shares during Q4, 2026, and by April 2027, we plan to complete the $5 billion share repurchase program announced in February of 2026.”
Figure

Non-GAAP adjusted diluted EPS grew 22% to $2.73 per share from $2.24 per share last year due to an increase in adjusted net income.

Source quote
“Non-GAAP adjusted diluted EPS grew 22% to $2.73 per share from $2.24 per share last year, driven by an increase in adjusted net income.”
Guidance

OMC expects about $325 million of revenue from deals that have not been completed in Q4.
Figure

Revenue, excluding assets held for sale, grew organically 7.2% in the third quarter.
Figure

Total revenue increased $407 million or 7.3% and adjusted EBITDA increased $191 million or 21.1% in core operations.

Source quote
“Looking at our core operations, total revenue increased $407 million or 7.3%, and adjusted adjusted EBITDA increased $191 million, or 21.1%.”

3 more

Key theme

Net interest expense is expected to increase to just under $100 million in Q4 2026 from the Q4 2025 actual amount of $53.2 million.
Key theme

The company expects to deliver 75 to 85 percent of specified amounts to the bottom line as it moves through the year.

Source quote
“We also, as we had indicated, expect to deliver 75 to 85 percent of that to the bottom line as we go through the year.”
Figure

Integrated media grew by over 10% in Q3 2026, leading the company's performance.

Source quote
“Integrated media led the way with very strong growth over 10%.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Typical (was typical)

Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Experiential and other growth was strong double digit in the quarter, again driven by experiential growth related to the FIFA World Cup.”

“Our fully diluted weighted average shares outstanding for the third quarter were $275.4 million, which increased in Q3 of last year due to shares issued for the interpublic acquisition, But...”

“Together, these wins, retentions, and expanded relationships show the growing demand for our services.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	6.42B	6.56B	−2.1%	4.04B	+59.1%
Gross profit	1.36B	1.30B	+4.7%	754.3M	+80.2%
Operating income	991.7M	922.5M	+7.5%	530.1M	+87.1%
Net income	656.0M	584.8M	+12.2%	341.3M	+92.2%
EPS	2.38	2.08	+14.4%	1.75	+36.0%
P/E today 87.2	74.4	196.8	−122.4	12.0	+62.4

Topics

Most discussed now

You can find the reconciliation of these to the nearest comparable gap measures in the presentation materials.
Omnicom's position as the largest media buyer gives it strength and scale to help clients achieve better commercial outcomes.
Omnicom's data-informed creative leadership engages consumers and drives measurable results.
Some of those payments that are on the acquisition line relate to earn-outs.

Faded since Q2 2026

Dropped Omnicom has also disposed of several small low-growth markets, as John had alluded to, in different parts of the world where...
Fading As Omnicom previously discussed, its Core Operations are the result of its ongoing strategic repositioning of the portfolio for growth...
Fading Omnicom delivered EPS growth in excess of 20% for the quarter, well in excess of 20% and a 200 basis...
Fading Omnicom grows the business, it delivers improved operating results and it can continue to invest in the business.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-22 Results of operations; Regulation FD disclosure · SEC 8-K
Omnicom reported core operations revenue of $6.0 billion in the third quarter of 2026, representing a 7.3% increase compared to the third quarter of 2025.
2026-10-06 Director or officer change · SEC 8-K
Omnicom Group Inc. filed a Form 8-K on October 1, 2026, regarding the departure of directors or certain officers.
2026-07-28 Results of operations; Regulation FD disclosure · SEC 8-K
Omnicom reported revenue of $6.6 billion for the second quarter of 2026, an increase of $2.5 billion compared to the second quarter of 2025.
2026-05-08 Shareholder vote results · SEC 8-K · routine
2026-04-28 Results of operations; Regulation FD disclosure · SEC 8-K
Omnicom reported core operations revenue of $5.6 billion in the first quarter of 2026, representing a 6.7% increase compared to the first quarter of 2025.
2026-03-12 Regulation FD disclosure · SEC 8-K
2026-03-02 Material agreement; New financial obligation · SEC 8-K
2026-02-18 Results of operations; Regulation FD disclosure · SEC 8-K
Omnicom announced a share repurchase program of up to $5 billion and entered into accelerated share repurchase arrangements for $2.5 billion.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-28.

Cash & runway

Cash & equivalents

$5.32B

2021-12-31

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: +41.4% YoY, -2.1% QoQ.

Quarter	Shares
Q1 2025	196.7M
Q2 2025	194.9M
Q3 2025	193.8M
Q1 2026	298.1M
Q2 2026	279.9M
Q3 2026	274.0M

Shares outstanding: 272.8M (2026-10-20)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 66 filings; 50 filings parsed.

Sold by insiders

1.4K shares

$122.9K · 1 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

through the end of 2029

contract with Mercedes covering media, creative, social media, event and marketing activations, and PR

Source quote
“We extended our contract with Mercedes through the end of 2029, covering media, creative, social media, event and marketing activations, and PR.”
2028

Olympic Games in Los Angeles

Source quote
“And in sports marketing, where we manage $9.9 billion in sponsorships and talent and oversee one-third of global sports media investments, we secured a major integrated assignment for the 2028 Olympic Games in Los Angeles, spanning sponsorships, creative, and communications.”
2026

cost reduction synergies

Source quote
“We are realizing the financial benefits of the combination and are on track to deliver $900 million in cost reduction synergies in 2026.”
april 27

completion of the remainder of the 3.2 billion repurchases

Source quote
“we have completed 3.2 billion of repurchases to date with the remainder to be completed by april 27.”
Q4 amounts

depreciation and amortization levels

Source quote
“Quarterly depreciation and amortization levels have been relatively consistent throughout the year, and we would expect Q4 amounts to be similar.”