Omnicom (OMC) Q1 2026 earnings summary

Executive summary

• Completed the first full quarter post-Interpublic/IPG acquisition, driving cohesive growth, integration, and strategic repositioning, including the launch of the Omni platform with Acxiom data and identity solutions.

• Revenue reached $6.24 billion in Q1 2026, up 69.2% year-over-year, driven by the merger and organic growth.

• Organic revenue growth was 3.9% and Adjusted EBITA/EBITDA margin expanded to 14.8% from 12.4%, reflecting integration synergies.

• Integration efforts included merging or sunsetting over 20 agency brands, new client wins, and expanded relationships.

• Integration and acquisition-related costs totaled $59.4 million in Q1 2026.

Financial highlights

• Core operations revenue for Q1 2026 was $5.6 billion, up $345 million year-over-year on a combined basis; total revenue reached $6.24 billion, up $2.55 billion (69.2%).

• Adjusted EBITA/EBITDA grew $180 million (27%) year-over-year, reaching $833.5 million for Core Operations; margin increased to 14.8%.

• Non-GAAP Adjusted EPS was $1.90, up 12% year-over-year; diluted EPS was $1.35, down due to increased share count.

• Free cash flow for Q1 2026 was $656.9 million, up from $386.5 million in Q1 2025.

• Share repurchases totaled $2.8 billion in Q1, with $5 billion authorized and $3.5 billion targeted for 2026.

Outlook and guidance

• On track to achieve $900 million in 2026 cost synergies and $1.5 billion by mid-2028.

• Double-digit Adjusted EPS growth expected for the year, with higher growth in subsequent quarters.

• Organic revenue growth guidance of 4% for core businesses reaffirmed.

• FX expected to benefit reported revenue by approximately 1% in 2026.

• Share repurchase program underway, targeting $3.5 billion in 2026 under a $5.0 billion authorization.