Omnicom Core Organic Growth Reaches 7.2% After Two Quarters

The Tip Desk · October 23, 2026 · 3 min read

Core Operations revenue was $6.0 billion with an 18.2% Adjusted EBITA margin as the company said it remains on track for $900 million of 2026 cost-reduction synergies.

Omnicom Group Inc. (OMC), the marketing and sales company, reported third-quarter Core Operations organic growth of 7.2%, a step-up from 6.1% in the second quarter and 3.9% in the first quarter as the Interpublic combination moved toward its first year.

Core Operations revenue was $6.0 billion, up $407.4 million, or 7.3%, from the year-ago third quarter. Organic growth contributed $400.8 million, or 7.2%, and foreign-currency translation added $3.4 million, or 0.1%. Reported revenue was $6.4 billion, including $412.1 million from dispositions and assets held for sale.

Chairman and Chief Executive Officer John Wren said the company is on track to deliver $900 million in cost-reduction synergies in 2026, with the Interpublic integration nearly complete and the portfolio of companies and operations streamlined. He said Omnicom is focused on high-demand services and will continue investing in people and agentic technology.

Adjusted EBITA from Core Operations rose $191.1 million, or 21.1%, to $1.1 billion versus the year-ago third quarter, and the related margin increased to 18.2% from 16.2%. The company attributed the margin increase primarily to cost-reduction synergies and organic revenue growth. That Core Operations margin followed 17.8% in the second quarter and 14.8% in the first quarter.

For the third quarter, Adjusted EBITA from Core Operations excluded a $106.8 million gain on the disposition of a subsidiary. Integration and acquisition-related costs excluded from Adjusted EBITA were $125.1 million ($76.8 million after tax), compared with $99.4 million ($79.2 million after tax) a year earlier.

Integrated Media remained the largest discipline at $3.2 billion, or 53.0% of Core Operations revenue. Advertising contributed $935.4 million, or 15.6%; Public Relations $678.3 million, or 11.3%; Experiential & Other $644.3 million, or 10.7%; and Health $566.6 million, or 9.4%. The United States accounted for $3.6 billion, or 60.2%, of Core Operations revenue. Euro Markets & Other Europe contributed $721.1 million, or 12.0%; Asia Pacific $573.1 million, or 9.6%; the United Kingdom $555.7 million, or 9.2%; Other North America $168.6 million, or 2.8%; Latin America $226.8 million, or 3.8%; and the Middle East & Africa $145.7 million, or 2.4%.

Reported operating income was $991.7 million, with a 15.4% margin. Non-GAAP Adjusted EBITA on a consolidated basis was $1.1 billion, or a 17.6% margin. Diluted earnings were $2.38 a share, up $0.63 from $1.75 a year earlier. Non-GAAP Adjusted diluted earnings were $2.73, up 22%. Weighted-average diluted shares outstanding were 275.4 million, versus 194.9 million a year earlier, after shares issued for the Interpublic acquisition and net share repurchases.

Salary and service costs were $4.6 billion. Salary and related costs were $2.9 billion, third-party service costs $1.5 billion, and third-party incidental costs $211.7 million. Occupancy and other costs were $499.3 million. Selling, general and administrative expenses were $200.9 million, including $40.4 million of integration and transaction costs related to Interpublic. Net interest expense was $104.2 million, up $61.0 million from a year earlier, which the company said was primarily due to debt assumed with Interpublic and first-quarter 2026 refinancing. Interest expense was $132.8 million. The effective tax rate was 24.3%, compared with 27.2% a year earlier; the Non-GAAP adjusted effective tax rate was 25.0%.

Wren said Omnicom is well positioned to pursue future growth as it approaches the one-year anniversary of the Interpublic acquisition, with the integration nearly complete and the company focused on high-demand services.