Omnicom Group (NYSE:OMC) reported accelerating organic revenue growth in the second quarter of 2026, raised its full-year growth outlook and said it remains on track to deliver planned cost-reduction synergies following its combination with Interpublic.
Chairman and Chief Executive Officer John Wren said revenue from core operations, which excludes assets held for sale and planned dispositions, grew organically by 6.1% during the quarter. Total core revenue increased 7.2% to $6 billion, aided by a 1.1% foreign-exchange benefit and a nominal contribution from a small acquisition.
Profit Growth and Updated Outlook
Core operations adjusted EBITDA rose 20.4%, or $181.4 million, in the second quarter, while the adjusted EBITDA margin expanded to 17.8% from 15.9% in the comparable combined 2025 period. Chief Financial Officer Phil Angelastro attributed the margin improvement primarily to cost-reduction synergies.
Non-GAAP adjusted diluted earnings per share increased 29.3% to $2.65, from $2.05 a year earlier. Adjusted net income rose $344.1 million to $745.2 million. The company’s adjusted tax rate was 26%, compared with 26.5% in 2025, and management expects its annual 2026 tax rate to remain at 26%.
Based on first-half results, Omnicom raised its forecast for 2026 organic revenue growth from ongoing operations to 5%, from its prior range of 4% to 4.5%.
Angelastro also said the company expects full-year adjusted diluted EPS growth in the “high teens,” adding that growth of more than 15% is expected. He identified $8.65, Omnicom’s 2025 non-GAAP EPS figure, as the comparison base.
Management reiterated its target of $900 million in cost-reduction synergies during 2026 and $1.5 billion by mid-2028. Angelastro said Omnicom was “a little over halfway” toward the 2026 synergy target at the end of the first half and expects 75% to 80% of the annual target to benefit earnings before interest, taxes and amortization growth and margin. The company also plans to continue investing in Omni and other business platforms.
Media, Experiential Lead Revenue Growth
Integrated media, which includes media, commerce, data, CRM, consulting and content automation, represented about 53% of core revenue and posted organic growth of more than 10%. Experiential and other revenue, representing 11% of core revenue, also grew more than 10%, largely because of FIFA World Cup-related activity.
Public relations revenue grew at a mid-single-digit rate, health revenue was flat, and advertising revenue declined at a high-single-digit rate. Angelastro said the advertising business has undergone internal reorganization as Omnicom integrates Interpublic assets, including realigning and, in some cases, eliminating brands as well as disposing of smaller low-growth markets.
By geography, the U.S., which accounted for 59% of core revenue, grew at a high-single-digit rate. Europe grew at a low-single-digit pace, while Latin America increased more than 10%. Asia-Pacific revenue declined slightly, and Middle East and Africa revenue fell by double digits because of ongoing conflict, Angelastro said.
Wren said organic growth reflected both expanded services for existing clients and new-business activity. The company cited expanded work in sports, media, production, commerce, social and influencer services for American Express, General Mills and Uber, along with new integrated media wins from Adidas, IBM and Subway.
Portfolio Dispositions and Capital Returns
Omnicom has completed more than half of its planned asset dispositions through the end of July, according to management. The annualized revenue associated with the dispositions and businesses held for sale is now estimated at $3.5 billion to $3.6 billion, up from a previously discussed $3.2 billion. About 60% of the increase relates to advertising businesses, Angelastro said.
The company expects the remaining businesses being disposed of to contribute approximately $300 million in revenue during the third quarter and $225 million in the fourth quarter, with EBITDA margins of about 10%. Omnicom expects to complete the remaining transactions by year-end.
Wren said the divestitures have removed businesses and markets that had been lower growth or no growth, while in some markets Omnicom has retained minority positions to continue serving global clients without carrying the full financial burden of those operations.
Omnicom also continued its $5 billion share-repurchase program. It completed $3 billion in repurchases through the first half, including a $2.5 billion accelerated share-repurchase program. Management expects to repurchase roughly another $500 million during 2026 and complete the balance by the end of the first quarter of 2027.
At June 30, gross long-term debt was $10.2 billion, while cash equivalents and short-term investments totaled $3.3 billion. The company had an undrawn $3.5 billion revolving credit facility. Angelastro said Omnicom’s total debt-to-pro-forma-adjusted EBITDA leverage ratio was 2.4 times, below 2.6 times a year earlier.
AI, Client Demand and Marketing Transformation
Wren identified agentic marketing transformation, consumer engagement and expanded client relationships as Omnicom’s major growth opportunities. He said Omni’s agentic layer, data and identity capabilities supported by Acxiom are designed to help clients with audience strategy, activation and cross-channel measurement.
Management said clients are seeking measurable returns and value from marketing investment. Florian Adamski, who participated in the discussion of the media business, said the combined company’s data, identity, commerce and retail-media capabilities are being unified in Omni.
On artificial intelligence, Wren said AI and generative AI are tools that Omnicom has used for some time and that agentic capabilities remain in early stages. He said savings generated through these tools are being shared with clients. Another executive, Paolo, said agentic workflows can improve delivery efficiency and consistency while data and identity assets can improve client outcomes. Wren added that clients are, in large part, reinvesting savings back into the marketplace.
About Omnicom Group (NYSE:OMC)
Omnicom Group Inc (NYSE: OMC) is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.
The company’s primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.
