Omnicom Group (OMC) AI Stock Analysis

• Market Cap: $22.07B
• Dividend Yield: 3.68%
• Average Volume (3M): 4.43M
• Price to Earnings (P/E): 163.1
• Beta (1Y): 0.72
• Revenue Growth: 4.13%
• EPS Growth: -7.84%
• Country: US
• Employees: 74,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 2.59
• Shares Outstanding: 314,603,670
• 10 Day Avg. Volume: 5,458,764
• 30 Day Avg. Volume: 4,430,762
• PEG Ratio: 2.89
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 5.85
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 8.05
• 1Y Price Target: $96.00
• Price Target Upside: 15.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 10.14
• Revenue Forecast (FY): $26.56B

• Rating: 62 Neutral
• Price Target: $86.00 ▲(3.29% Upside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is driven primarily by solid financial fundamentals led by strong free cash flow and improving revenue momentum, and a constructive (though mixed) technical setup with the stock trading above key moving averages. These positives are meaningfully offset by a very high P/E and the 2025 GAAP net loss alongside acquisition-related charges and higher projected interest expense, which increase near-term earnings and execution risk.

Positive Factors

Cash Generation

Consistently positive operating cash flow and a sharp increase in free cash flow in 2025 indicate durable internal cash generation. This supports funding of integration costs, buybacks, dividends and deleveraging without relying solely on external financing, strengthening financial flexibility over the next 2–6 months.

Scale and Market Position

The completed Interpublic acquisition creates a scaled global marketing and sales leader with combined revenues north of $25B. Greater scale improves client access, cross‑sell opportunities, procurement leverage and competitive positioning, underpinning more stable revenue streams and client retention structurally.

Synergy and Integration Plan

A clearly articulated integration roadmap with doubled synergies to $1.5B (and ~$900M in 2026) signals structural cost savings across labor, real estate, and G&A/IT/procurement. If executed, these recurring savings should sustainably improve margins and cash flow conversion beyond one-time adjustments.

Negative Factors

Earnings Quality Volatility

Large one‑time integration and restructuring charges produced a GAAP net loss, creating noise in reported earnings and reducing visibility into core profitability. Persistent below‑the‑line volatility can complicate forecasting and capital allocation decisions during the multi‑quarter integration window.

Leverage and Refinancing Risk

While 2025 shows improved reported equity, debt remains large and a near‑term $1.4B note maturity plus assumed IPG debt raise refinancing and interest expense risk. Higher projected 2026 net interest (~$210M) will structurally press cash flow available for investment or returns if rates or credit conditions tighten.

Revenue Base Reduction Risk

Planned disposition of ~$2.5B in revenue reduces the retained portfolio and shifts near‑term revenue composition. Successful execution is necessary to realize strategic focus without impairing client relationships or organic growth, introducing execution and transitional revenue risk over the next several quarters.

Omnicom Group Business Overview & Revenue Model

Company Description

Omnicom Group Inc., together with its subsidiaries, provides advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising, customer relationship management, public relations, and healthcare. The company's services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing, digital transformation, entertainment marketing, experiential marketing, field marketing, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and in-store design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, retail marketing, sales support, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the United States, Canada, Puerto Rico, South America, Mexico, Europe, the Middle East, Africa, Australia, Greater China, India, Japan, Korea, New Zealand, Singapore, and other Asian countries. The company was incorporated in 1944 and is based in New York, New York.

How the Company Makes Money

Omnicom generates revenue primarily through its extensive range of advertising and marketing services, which are billed on a project basis, retainer agreements, or performance-based contracts. Key revenue streams include traditional advertising (creative development and media buying), digital marketing services (including social media and search engine marketing), and public relations services. The company also earns revenue from consulting and data analytics, helping clients make informed marketing decisions. Significant partnerships with major global brands across various sectors enhance its earnings potential, as these relationships often lead to long-term contracts and repeat business. Additionally, Omnicom capitalizes on market trends by investing in technology and innovation, thus maintaining a competitive edge in the evolving marketing landscape.

Omnicom Group Financial Statement Overview

Summary

Strong and improving cash generation (consistently positive operating cash flow and sharply higher free cash flow in 2025) supports underlying earnings power. However, the 2025 net loss despite steady operating margins raises earnings-quality concerns, and while leverage appears to improve in 2025, the magnitude of balance sheet changes reduces comparability and adds uncertainty.

Income Statement

Revenue has grown steadily from 2023 to 2025 (with a strong step-up in 2025), and operating profitability has remained consistent, with EBIT margins holding around the mid-teens across the period. The key weakness is bottom-line volatility: after solid net profit margins near ~9–10% in 2021–2024, 2025 reported a small net loss, which materially weakens earnings quality and raises questions about one-time charges or other below-the-line pressure.

Balance Sheet

Leverage has historically been elevated (debt running well above equity in 2020–2024), which can limit flexibility in a cyclical advertising environment. 2025 shows a sharp improvement in the reported debt-to-equity relationship (equity increased substantially), which is a positive de-risking signal, but the reported jump in assets, debt, and equity versus prior years also indicates a meaningful balance sheet shift that reduces comparability and adds uncertainty. Overall: improving trajectory, but leverage and the scale of year-to-year change temper the score.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are consistently positive, and free cash flow increased sharply in 2025 versus 2024. Free cash flow has generally tracked net income closely in profitable years, and notably remains strong even in 2025 despite the net loss—supporting underlying cash earnings power. The main drawback is that cash flow relative to the debt load is only moderate, so sustained deleveraging would still require continued strong cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.07B	17.27B	15.69B	14.69B	14.29B	14.29B
Gross Profit	2.80B	2.98B	2.74B	2.50B	2.58B	2.53B
EBITDA	2.45B	2.86B	2.62B	2.42B	2.37B	2.41B
Net Income	1.33B	-54.50M	1.48B	1.39B	1.30B	1.40B
Balance Sheet
Total Assets	28.84B	54.42B	29.62B	28.04B	27.00B	28.42B
Cash, Cash Equivalents and Short-Term Investments	3.41B	6.88B	4.34B	4.43B	4.34B	5.32B
Total Debt	7.04B	10.67B	6.87B	6.50B	6.70B	6.87B
Total Liabilities	23.72B	41.72B	24.45B	23.40B	22.84B	24.65B
Stockholders Equity	4.61B	12.05B	4.19B	3.62B	3.25B	3.27B
Cash Flow
Free Cash Flow	1.67B	2.79B	1.59B	1.34B	848.30M	1.28B
Operating Cash Flow	1.83B	2.94B	1.73B	1.42B	926.50M	1.95B
Investing Cash Flow	-159.30M	980.20M	-1.06B	79.10M	-380.90M	-709.20M
Financing Cash Flow	-1.75B	-1.59B	-582.00M	-1.39B	-1.36B	-1.39B

Omnicom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMC, the sentiment is Positive. The current price of 83.26 is above the 20-day moving average (MA) of 73.60, above the 50-day MA of 76.99, and above the 200-day MA of 74.48, indicating a bullish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 64.72 is Neutral, neither overbought nor oversold. The STOCH value of 82.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OMC.

Omnicom Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRTO	69 Neutral	$896.69M	6.61	13.16%	―	0.32%	69.78%
MGNI	66 Neutral	$1.72B	32.39	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.21B	61.80	3.80%	―	6.76%	1841.46%
WPP	64 Neutral	$3.93B	8.11	11.24%	9.15%	-1.89%	90.72%
OMC	62 Neutral	$22.07B	163.09	-0.67%	3.68%	4.13%	-7.84%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Omnicom Group Corporate Events

Omnicom Reports Q4 2025 Results, Highlights Integration Progress

Omnicom on February 18, 2026 reported its fourth-quarter and full-year 2025 results, highlighting revenue of $5.5 billion for the quarter and $17.3 billion for the year, alongside GAAP net losses driven by acquisition-related items but solid non-GAAP adjusted earnings and margins. Following the November 26, 2025 closing of its merger with Interpublic Group, the company outlined integration progress, doubled its total cost-synergy target to $1.5 billion, and announced a $5.0 billion share repurchase program including a $2.5 billion accelerated buyback, signaling an aggressive push to streamline operations, enhance profitability, and return substantial capital to shareholders.

The quarter showed a swing to a net loss of $0.9 billion and an operating loss of $1.0 billion under GAAP, contrasted with non-GAAP adjusted EBITA of $928.9 million and a 16.8% margin, while full-year figures reflected a modest GAAP net loss of $54.5 million against $1.8 billion in non-GAAP adjusted net income. Management emphasized portfolio simplification, leadership and brand changes, and the launch of a new generation of its Omni platform as key levers to integrate the larger combined organization, capture synergies quickly in 2026, and strengthen its competitive position in the global marketing and communications sector.

The most recent analyst rating on (OMC) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group Shareholders Approve 2026 Incentive Award Plan

On January 28, 2026, Omnicom Group Inc. shareholders held a special meeting at which they approved the Omnicom 2026 Incentive Award Plan, designed to govern the company’s future incentive-based compensation programs. The plan received strong shareholder backing, with 257,022,432 votes in favor, 8,600,690 against and 223,223 abstentions, signaling broad investor support for Omnicom’s approach to aligning management and employee incentives with shareholder interests and potentially shaping its compensation structure in the coming years.

The most recent analyst rating on (OMC) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group Finalizes Exchange Offers After Merger

Omnicom Group Inc. completed its merger with The Interpublic Group of Companies, Inc. on November 26, 2025, and subsequently finalized exchange offers and consent solicitations on December 2, 2025. This involved exchanging $2.95 billion of IPG’s existing notes for new Omnicom notes and cash, alongside amending certain covenants and provisions. The issuance of new notes is expected to impact Omnicom’s financial structure and market positioning, with implications for stakeholders regarding the company’s debt management and strategic direction.

The most recent analyst rating on (OMC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group Announces Leadership Changes Post-Acquisition

On December 1, 2025, Omnicom Group Inc. announced its strategic plans and executive leadership changes following the acquisition of The Interpublic Group of Companies, Inc. The company has engaged with its largest clients to ensure a smooth transition and plans to unveil its new strategy and capabilities at the CES 2026 in January. Omnicom will also provide updates on its integration and synergy expectations during its year-end earnings announcement in February 2026, followed by an investor day to discuss capital allocation strategies. The company has increased its dividend, reflecting confidence in its cash generation and synergy capture.

The most recent analyst rating on (OMC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Completes Acquisition of Interpublic Group

On November 26, 2025, Omnicom announced the completion of its acquisition of The Interpublic Group of Companies, creating the world’s leading marketing and sales company. The merger, which involved an exchange of shares, positions Omnicom as a modern leader in marketing and sales, with a combined revenue exceeding $25 billion. The company aims to set a new standard in the industry by integrating data, creativity, and technology to drive sustainable growth. The merger also resulted in changes to the company’s leadership and board of directors, with Philippe Krakowsky appointed as Co-President and Co-Chief Operating Officer.

The most recent analyst rating on (OMC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.

Omnicom Group Nears Completion of IPG Merger

On August 11, 2025, Omnicom Group Inc. initiated offers to exchange outstanding notes issued by The Interpublic Group of Companies, Inc. (IPG) for up to $2.95 billion in new senior notes. This move is part of Omnicom’s pending merger with IPG, which is expected to be completed by November 26, 2025, following regulatory approvals. The merger will see IPG become a wholly owned subsidiary of Omnicom, with IPG shareholders receiving Omnicom shares. The merger is anticipated to enhance Omnicom’s market position by integrating IPG’s assets and operations, although the final financial impacts remain subject to change as further analyses are conducted.

The most recent analyst rating on (OMC) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Omnicom Group stock, see the OMC Stock Forecast page.