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what it is
Omnicom runs ad agencies and marketing shops that plan campaigns, buy media, and manage brand work for big companies.
how it gets paid
Last year Omnicom made $17.3B in revenue. Advertising and media was the main engine at $6.1B, or 35% of sales.
why it's growing
Revenue grew 10.1% last year. EDGAR shows $11.7B revenue, up 191% vs. prior year.
what just happened
Omnicom reported $11.7B in revenue and $4.51 EPS, while Yahoo shows a 40.8% beat at $2.59 versus $1.84 expected.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
11.2x trailing p/e — the market's not buying it — or you found a deal
4.1% dividend yield — cash in your pocket every quarter
15.0% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Omnicom runs ad agencies and marketing shops that plan campaigns, buy media, and manage brand work for big companies.
Billings means the ad money clients route through the network. So what: Omnicom gets paid on scale, not one lucky campaign. It has 74,900 employees and 46% of sales outside North America, so your brand can be moved across many markets.
How they make money
$17.3B
annual revenue · their business grew +10.1% last year
Advertising and media
$6.1B
+9.0%
Precision marketing
$3.8B
+8.0%
Public relations
$2.6B
+7.0%
Healthcare marketing
$2.4B
+10.0%
Experiential and commerce
$2.4B
+6.0%
The products that matter
global advertising and marketing services
Advertising & Marketing Services
$17.3B revenue · entire business
it's the full $17.3B company. last year's 47.1% growth came largely from acquisition, so your real question is what the combined operation earns after integration dust settles.
entire revenue base
Key numbers
$100
18-mo target
That is $21.84 above the $78.16 share price, or 28% upside.
11.2x
trailing P/E
You pay 11.2 years of past earnings for the stock. That is cheap only if earnings hold.
4.1%
cash yield
You get $4.10 a year for every $100 invested.
15.0%
return on capital
Each $100 of capital has been turned into $15 of profit.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $4.9B (24% of capital)
- net profit margin 6.8% — keeps 7 cents of every dollar in revenue
- return on equity 28% — $0.28 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OMC 3 years ago → it's now worth $10,240.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Omnicom reported $11.7B in revenue and $4.51 EPS, while Yahoo shows a 40.8% beat at $2.59 versus $1.84 expected.
EDGAR shows $11.7B revenue, up 191% vs. prior year. EPS was $4.51, up 158% vs. prior year.
$4.3B
revenue
$4.51
eps
191%
revenue growth
the number that mattered
Revenue was $11.7B. That is the scale behind the 4.1% yield.
-
omnicom looks a bit different than it did this time last year.indeed, in late november, the company completed the acquisition of the interpublic group of companies, inc., thereby creating the world’s largest marketing and sales company.
-
according to the terms of the all-stock transaction, interpublic shareholders received 0.344 shares of omnicom for each share of interpublic owned, and omnicom shareholders now own 60.6% of the combined entity, with interpublic controlling the remaining 39.4%.we have tentatively updated our earnings presentation, but additional modifications will be forthcoming once the new entity reports year-end results in mid-february.
-
at that time, leadership will provide an update on the integration and expectations.
-
in the meantime, the company will report an uninspiring pro-forma performance for 2025.
-
omnicom reported september-interim earnings of $1.75 a share, well below our estimate and the year-ago result, on a 4% top-line improvement.
source: company earnings report, 2026
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What could go wrong
the top risk is making the Interpublic deal look bigger without making it better.
med
interpublic integration slips
OMC just absorbed a rival large enough to reshape the entire company. if systems, agencies, or clients do not blend cleanly, last year's 47.1% revenue surge will read like a one-time event instead of a better earnings base.
this risk sits on top of the full $17.3B revenue base and a balance sheet carrying $4.9B in long-term debt.
med
ad budgets get cut first
advertising spend is one of the easiest lines for clients to trim when growth slows. OMC's 80/100 predictability helps, but predictability is not immunity.
with a 6.1% net margin, you do not need a dramatic revenue drop for earnings pressure to show up fast.
med
scale without margin lift
the bull case needs the combined company to earn more from its larger footprint. if revenue heads toward the $25B estimate while margins stay stuck near 6.1%, the market will treat this as a low-multiple utility for ad spend.
that would leave you owning a bigger company at 11.2x earnings for a reason, not by accident.
if integration stumbles or ad demand weakens, the pressure lands on a business that kept only 6.1 cents of each revenue dollar last year while carrying $4.9B of long-term debt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether $25B revenue looks earned
consensus sits at $25B for fy2026. if that number arrives without better profitability, size alone will not rerate the stock.
calendar
mid-february integration update
management said it will outline integration progress and cost saves in mid-february. that is the first real test of the merger story.
risk
the 6.1% net margin
a thin margin means small execution misses matter. if costs rise before savings show up, earnings take the hit first.
trend
institutional buying that is positive, not decisive
457 buyers versus 420 sellers in 3q2025 is net positive. it is not the kind of gap that settles the debate for you.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts are not seeing a near-term breakout or breakdown.
risk profile
average
stability score 3. you are not in a bunker stock, but you are not in a rollercoaster either.
chart momentum
average
technical score 3. the chart is waiting for new information, which means the merger update matters more than trend-following here.
earnings predictability
80 / 100
management has a solid record of keeping results within a known range. for you, that lowers the odds of pure chaos.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 457 buyers vs. 420 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$64
$135
$78
current price
$100
target midpoint · +28% from current · 3-5yr high: $180 (+130% · 25% ann'l return)
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