Havas (HAVAS) Q1 2026 TU earnings summary

Executive summary

• Net revenue for Q1 2026 reached €638 million, with organic growth of 2.5% year-over-year, driven by strong US performance (+7.4%) and solid business momentum despite macroeconomic uncertainty.

• Multiple mid-size budget wins, strong client retention, and new business contracts contributed to growth.

• AI deployment advanced with group-wide training and rollout of proprietary tools AVA and Vermeer to enhance scalable, responsible content creation.

• Modest exposure to the Middle East (1.9% of net revenue), with no material financial impact in Q1.

Financial highlights

• Q1 2026 net revenue was €638 million (+2.5% organic growth), with a -5.8% FX impact and +1.7% scope effect; reported growth was -1.6%.

• North America delivered +7.4% organic growth, Europe +1.1%, Asia Pacific -6.2%, and Latin America -0.6%.

• Middle East exposure limited at 1.9% of net revenue, with March performance down 10% in key markets but minimal Q1 impact.

Outlook and guidance

• 2026 guidance confirmed: organic net revenue growth of 2.0%-3.0%, adjusted EBIT margin 13.2%-13.5%, payout ratio around 40%.

• Midterm (2028) guidance reaffirmed: adjusted EBIT margin 14%-15%, payout ratio around 40%.

• Management remains confident in fundamentals and agility despite macro uncertainties.

• Plans to acquire five to ten majority stakes in 2026.