01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Omnicom Group Inc. reported first-quarter 2026 revenue of $6,242.9 milliona, up from $3,690.4 million a year earlier, with the increase driven primarily by the November 26, 2025 merger with The Interpublic Group of Companies, Inc. (IPG).
Operating income rose to $646.2 millionb from $452.6 million, but operating margin declined to 10.4% from 12.3%, reflecting higher amortization from acquired intangibles and $97.8 million of merger-related integration, acquisition, severance and disposal charges. Diluted net income per share was $1.35 versus $1.45 a year earlier, with the filing noting the offset of a larger weighted share count after the IPG share issuance. Net income attributable to Omnicom was $405.2 million, and EBITA rose to $763.6 million from $474.4 million, with EBITA margin at 12.2% versus 12.9%.
Cash and balance sheet activity was significant in the quarter. Cash and cash equivalents fell to $4,288.1 millionc from $6,881.1 million, with operating activities using $553.2 million and share repurchases totaling $2,777.6 million in cash flows, including an accelerated share repurchase program of approximately $2.5 billion under a $5.0 billion authorization approved in February 2026. Omnicom issued $2.0 billion of senior notes in U.S. dollars and €600 million of euro notes in March 2026 and redeemed its $1.4 billion 3.600% notes due 2026.
Net debt rose to $5,756.8 milliond from $2,235.4 million at December 31, 2025, and the filing states the Credit Facility leverage ratio was 2.5 times against a 3.5 times covenant. The filing describes organic growth of 3.9% on a combined basis for Core Operations, with foreign exchange adding $174.2 million to revenue.
Revenue from businesses disposed of or held for sale contributed $627.2 million in the quarter. Management states that it expects foreign exchange to add 3.0% to revenue in the second quarter and 1.0% for the full year, assuming March 31, 2026 exchange rates.
02—Key points
Key Highlights
- Revenue rose 69.2% to $6,242.9 million, reflecting the first full quarter including IPG; organic growth on a combined Core Operations basis was 3.9%.
- Operating income increased to $646.2 million, but operating margin fell to 10.4% from 12.3%, as amortization expense rose to $117.4 million from $25.8 million.
- Diluted EPS was $1.35 versus $1.45, while net income attributable to Omnicom rose to $405.2 million from $287.7 million.
- Merger-related integration and acquisition costs of $59.4 million, severance and repositioning costs of $4.1 million and a $34.3 million loss on assets held for sale and dispositions reduced operating income by $97.8 million.
- Net cash used in operating activities was $553.2 million, driven by a $1.2 billion use of operating capital, and cash and cash equivalents declined to $4,288.1 million.
- Share repurchases of $2,777.6 million in cash flows, including an approximately $2.5 billion accelerated share repurchase, were made under a $5.0 billion authorization approved in February 2026.
- Net debt increased to $5,756.8 million from $2,235.4 million at December 31, 2025, after issuing $2.0 billion of U.S. dollar notes and €600 million of euro notes; the Credit Facility leverage ratio was 2.5 times against a 3.5 times covenant.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Omnicom Group kept $0.06.
- Revenue$6.24B100.0%
- Cost of revenue−$5.21B83.4%
- Gross profit$1.04B16.6%
- Operating costs−$391.4M6.3%
- Operating income$646.2M10.4%
- Interest, other & tax−$241.0M3.9%
- Net income$405.2M6.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.24B$3.69B | +69.2% |
| Cost of Revenue | $5.21B$3.06B | +70.1% |
| Gross Profit | $1.04B$629.50M | +64.8% |
| SG&A Expenses | $224.50M$117.90M | +90.4% |
| Operating Expenses | $5.60B$3.24B | +72.9% |
| Operating Income | $646.20M$452.60M | +42.8% |
| Interest Expense | $119.00M$59.10M | +101.4% |
| Net Income | $405.20M$287.70M | +40.8% |
| EPS (Basic) | $1.36$1.46 | −6.8% |
| EPS (Diluted) | $1.35$1.45 | −6.9% |
| Shares Outstanding (Basic) | 298.10M196.70M | +51.6% |
| Shares Outstanding (Diluted) | 299.20M198.30M | +50.9% |
05—Questions
Frequently Asked Questions
How much of the revenue increase came from the IPG merger rather than underlying growth?
Revenue increased $2,552.5 million, or 69.2%, to $6,242.9 million. The filing attributes this primarily to the November 26, 2025 merger with IPG. On a combined Core Operations basis, revenue grew $350.9 million, or 6.7%, including organic growth of 3.9% and a foreign exchange benefit of $144.2 million, or 2.7%.
Why did operating margin decline even though operating income grew?
Operating income rose $193.6 million to $646.2 million, but operating margin fell to 10.4% from 12.3%. The filing cites higher amortization of intangible assets, which increased to $117.4 million from $25.8 million, largely from the merger, along with $97.8 million of merger-related integration, acquisition, severance and disposal charges in the quarter.
What did Omnicom do with its capital in the first quarter of 2026?
Omnicom repurchased $2,777.6 million of common stock in cash flows, including an accelerated share repurchase of approximately $2.5 billion under a $5.0 billion authorization approved in February 2026. It also paid $251.7 million in dividends to common shareholders and declared $0.80 per share in dividends. The company funded these actions partly through new senior notes issued in March 2026.
How has the debt position changed?
Long-term debt rose to $9,977.5 million from $9,054.5 million at December 31, 2025, including current portion. In March 2026 Omnicom issued $400 million of 4.200% notes due 2029, $700 million of 5.000% notes due 2033, $600 million of 5.300% notes due 2036, and a €600 million 3.850% euro note due 2034. It redeemed its $1.4 billion 3.600% notes due 2026. Net debt was $5,756.8 million at quarter-end, and the Credit Facility leverage ratio was 2.5 times against a covenant maximum of 3.5 times.
What is the outlook for foreign exchange effects on revenue?
Assuming exchange rates at March 31, 2026 remain unchanged, management expects foreign exchange rate changes to positively impact revenue by 3.0% in the second quarter and by 1.0% for the full year 2026.
06—Continue