Omnicom Group Inc (OMC)
NYSE:OMC
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Omnicom Group
(NYSE:OMC)
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Rating:66Neutral
Price Target:
$83.00
▲(5.50% Upside)
Action:Reiterated
Date:05/09/26
OMC scores above-average primarily due to strong free cash flow and attractive shareholder return profile (low P/E and ~3.9% yield), supported by positive integration progress and synergy/buyback plans from the latest call. The main constraint on the score is the sharp deterioration in reported profitability and near-term uncertainty from higher interest expense and dispositions, while technicals are broadly neutral.
Positive Factors
Free Cash Flow Strength
Robust operating and free cash flow (OCF ~ $3.17B; FCF ~$2.99B) provides durable financial flexibility. Strong cash conversion supports debt service, large share repurchases, and funding for integration investments even while GAAP earnings are pressured, reducing refinancing and liquidity risk.
Negative Factors
Compressed Reported Profitability
A sharp decline in reported margins and near-zero GAAP net income reflects acquisition amortization, integration charges and underperforming units. Until adjusted margin gains translate into sustainable GAAP profitability, returns (ROE) and earnings resilience remain weak, limiting durable equity returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Robust operating and free cash flow (OCF ~ $3.17B; FCF ~$2.99B) provides durable financial flexibility. Strong cash conversion supports debt service, large share repurchases, and funding for integration investments even while GAAP earnings are pressured, reducing refinancing and liquidity risk.
Read all positive factors
Omnicom Group Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to improve performance.
Data provided by:
The Fly
The FlyOmnicom Group (OMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.49B
Dividend Yield3.68%
Average Volume (3M)4.18M
Price to Earnings (P/E)9.5
Beta (1Y)0.78
Revenue Growth25.88%
EPS Growth-94.29%
CountryUS
Employees120,000
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)1.10
Shares Outstanding285,006,200
10 Day Avg. Volume3,798,347
30 Day Avg. Volume4,183,641
Financial Highlights & Ratios
PEG Ratio2.89
Price to Book (P/B)1.35
Price to Sales (P/S)0.94
P/FCF Ratio5.85
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit8.34
Enterprise Value/Ebitda23.19
Forecast
1Y Price Target
$96.71Price Target Upside22.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)10.62
Revenue Forecast (FY)$25.44B
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 health...
How the Company Makes Money
Omnicom primarily makes money by providing marketing and communications services to clients under negotiated commercial arrangements, generating revenue that is largely recognized as services are delivered. Its core revenue stream is fees for prof...
Omnicom Group Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call showed strong early execution of the Omnicom–Interpublic integration: solid top-line growth from core operations, meaningful margin expansion (adjusted EBITDA +240 bps), double-digit adjusted EPS growth, robust free cash flow improvement, and rapid deployment of the Omni AI platform and integrated media capabilities. Management is realizing cost synergies and returning capital via a large buyback program. Offsetting these positives are acquisition-related charges, substantially higher debt and interest expense, underperforming disposed businesses (margins lower than originally expected), weakness in the advertising discipline, and uncertainty around disposal proceeds and some regional softness. Overall, the positives from revenue, margins, cash flow and integration momentum substantially outweigh the near-term financial and disposal-related headwinds.Positive Updates
Core Operations Revenue and Organic Growth
Core operations revenue of $5.6 billion in Q1 2026, increase of $345 million versus Q1 2025 (combined Omnicom + Interpublic). Organic revenue growth was 3.9%, and Phil reported total core revenue growth of 6.7% year-over-year.
Negative Updates
Higher Debt Load and Rising Interest Expense
Gross long-term debt of $10.2 billion at quarter end (≈ $1 billion higher since Dec 31, 2025). Net interest expense increased to $72 million from $29 million (increase of $43 million) and interest expense rose by ~$60 million due to assumed Interpublic debt; company expects net interest expense to increase by ~ $200 million for full-year 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Core Operations Revenue and Organic Growth
Core operations revenue of $5.6 billion in Q1 2026, increase of $345 million versus Q1 2025 (combined Omnicom + Interpublic). Organic revenue growth was 3.9%, and Phil reported total core revenue growth of 6.7% year-over-year.
Read all positive updates
Company Guidance
Guidance and forward-looking targets from the call emphasized aggressive cost and capital deployment plans and specified financial assumptions: management reiterated $900 million of cost‑reduction synergies in 2026 and $1.5 billion by mid‑2028; a $5 billion share‑repurchase program to be completed over the next 12 months (including a $2.5 billion ASR), with $2.8 billion repurchased through Q1 and an expected shares‑out decline of roughly 11–12% by year‑end 2026 (weighted‑average shares for the year down ~8–9%); an adjusted tax rate of ~26% for 2026; net interest expense expected to rise by about $200 million in 2026 versus 2025; FX is expected to benefit reported revenue by ~1% assuming current rates; planned asset dispositions total about $3.2 billion of annual revenue (≈$1 billion already disposed in Q1); and operationally they remain on track for prior organic growth and margin targets after reporting Q1 core revenue of $5.6 billion (organic growth 3.9%), adjusted EBITDA up ~$180 million (>27%) with a 240‑bp margin expansion to 14.8%, while Q1 recorded $59 million of integration costs, $34 million loss on dispositions, $4 million of severance/repositioning, $117 million of acquisition‑related amortization, gross long‑term debt of $10.2 billion, cash/short‑term investments of $4.3 billion, an undrawn $3.5 billion revolver, and a pro‑forma total leverage ratio of ~2.5x.Omnicom Group Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
57
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.82B | 17.27B | 15.69B | 14.69B | 14.29B | 14.29B |
| Gross Profit | 3.32B | 2.98B | 2.74B | 2.50B | 2.58B | 2.53B |
| EBITDA | 1.19B | 826.00M | 2.62B | 2.42B | 2.37B | 2.41B |
| Net Income | 63.00M | -54.50M | 1.48B | 1.39B | 1.30B | 1.40B |
Balance Sheet | ||||||
| Total Assets | 49.96B | 54.42B | 29.62B | 28.04B | 27.00B | 28.42B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29B | 6.88B | 4.34B | 4.43B | 4.34B | 5.32B |
| Total Debt | 11.52B | 12.78B | 6.87B | 6.50B | 6.70B | 6.87B |
| Total Liabilities | 39.89B | 41.36B | 24.45B | 23.40B | 22.84B | 24.65B |
| Stockholders Equity | 9.44B | 12.05B | 4.19B | 3.62B | 3.25B | 3.27B |
Cash Flow | ||||||
| Free Cash Flow | 2.99B | 2.79B | 1.59B | 1.34B | 848.30M | 1.28B |
| Operating Cash Flow | 3.17B | 2.94B | 1.73B | 1.42B | 926.50M | 1.95B |
| Investing Cash Flow | 940.90M | 980.20M | -1.06B | 79.10M | -380.90M | -709.20M |
| Financing Cash Flow | -3.30B | -1.59B | -582.00M | -1.39B | -1.36B | -1.39B |
Omnicom Group Technical Analysis
Negative
78.67
Price Trends
76.03
Negative
76.70
Negative
75.74
Negative
Market Momentum
-1.27
Positive
37.61
Neutral
23.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMC, the sentiment is Negative. The current price of 78.67 is above the 20-day moving average (MA) of 75.24, above the 50-day MA of 76.03, and above the 200-day MA of 75.74, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 23.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMC.
Omnicom Group Risk Analysis
Omnicom Group disclosed 26 risk factors in its most recent earnings report. Omnicom Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Omnicom Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.87B | 96.63 | 18.57% | ― | 7.10% | 404.29% | |
66 Neutral | $20.49B | 9.52 | 0.82% | 3.68% | 25.88% | -94.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $863.69M | 28.87 | 10.17% | ― | -0.43% | -15.84% | |
55 Neutral | $1.54B | -30.40 | 2.52% | ― | 4.48% | 868.83% | |
49 Neutral | $3.99B | -3.46 | -7.54% | 9.15% | -5.19% | -141.67% |
* Communication Services Sector Average
OMC
Omnicom Group
71.88
1.13
1.60%
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6.22
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31.50%
WPP
WPP
18.54
-18.65
-50.15%
CRTO
Criteo SA
17.24
-9.19
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MGNI
Magnite
13.06
-2.46
-15.83%
Omnicom Group Corporate Events
Executive/Board ChangesShareholder Meetings
Omnicom Shareholders Reaffirm Board, Pay and Auditor Oversight
Positive
May 8, 2026
Omnicom Group Inc. held its annual meeting of shareholders on May 5, 2026, where investors elected 14 directors to the board, reaffirming the company’s existing leadership slate and governance structure. Shareholders also approved on an advi...
Business Operations and StrategyStock BuybackFinancial Disclosures
Omnicom Reports Strong Q1 2026 Results and Outlook
Positive
Apr 28, 2026
On April 28, 2026, Omnicom reported first-quarter 2026 results showing consolidated revenue of $6.2 billion and core operations revenue of $5.6 billion, reflecting 3.9% organic growth after dispositions and assets held for sale. The company posted...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Omnicom Details Post-Interpublic Acquisition Growth and Synergy Plan
Positive
Mar 12, 2026
Omnicom Group said it will host an Investor Day on March 12, 2026 to outline its post-acquisition growth strategy following its purchase of Interpublic, emphasizing competitive advantages and an integrated financial framework for sustainable expan...
Business Operations and StrategyPrivate Placements and Financing
Omnicom Group Completes Major Multi-Currency Senior Notes Offerings
Positive
Mar 2, 2026
On March 2, 2026, Omnicom Group closed a U.S. dollar notes offering totaling $1.7 billion across senior notes maturing in 2029, 2033, and 2036, with coupons ranging from 4.200% to 5.300%. Net proceeds of about $1.68 billion will primarily repay it...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Omnicom Reports Q4 2025 Results, Highlights Integration Progress
Positive
Feb 18, 2026
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-G...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.