Omnicom Group kicked off 2025 with a mixed bag of first-quarter results, outperforming analyst expectations but falling just short on revenue as macroeconomic uncertainty and acquisition-related costs weighed on performance.
The global advertising giant reported Non-GAAP Adjusted Net Income per Share of $1.70, edging past the $1.66 forecast by analysts. However, revenue for the quarter landed at $3.69 billion, missing the $3.72 billion Wall Street estimate.
Organic revenue growth rose 3.4 per cent year-on-year, driven by standout performances in Media & Advertising, which jumped 7.2 per cent, and Precision Marketing, up 5.8 per cent. These gains were partially offset by declines in Public Relations and Healthcare.
The company’s operating income fell 5.5 per cent year-over-year to $452.6 million, while its operating margin declined to 12.3 per cent, down from 13.2 per cent in Q1 2024. A key factor behind the margin squeeze was $33.8 million in costs tied to Omnicom’s pending acquisition of Interpublic Group (IPG)—a deal expected to close in the second half of 2025.
“Organic revenue growth for the first quarter was 3.4 per cent. We are assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025. While uncertainty has increased, one thing hasn’t changed and will always be true – Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance,” said John Wren, chairman and chief executive officer of Omnicom.
Looking forward, the company signalled a cautious tone amid ongoing economic volatility. It confirmed that it is closely monitoring external factors that could impact client spend, while remaining confident that the IPG acquisition will unlock new revenue opportunities and cost efficiencies.
As one of the largest consolidations in recent advertising history, the deal has the potential to reshape the competitive landscape, particularly in data, media buying and digital transformation services.
“I am confident that our diversified portfolio and strong balance sheet, together with our experienced leadership teams, will allow us to navigate this challenging economic environment. We are also very excited about the expected closing of the Interpublic acquisition in the second half of this year. It will give the combined company substantial opportunities for revenue growth and distinctive cost synergy potential to drive increased profitability, EPS growth, and free cash flow,” Wren said.
For now, Omnicom said it will continue to lean into growth segments while keeping a close eye on shifting client priorities in a still-uncertain market.
