01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Omnicom Group Inc. reported a sharply larger second quarter 2026 following its November 26, 2025 merger with The Interpublic Group of Companies, Inc. (IPG), which is included in results only from the Closing Date forward.
Revenue for the three months ended June 30, 2026 was $6.56 billiona, up from $4.02 billion, and operating income rose to $922.5 million from $439.2 million. Net income attributable to Omnicom was $584.8 million, or $2.08 diluted per share, versus $257.6 million, or $1.31, a year earlier. For the six months, revenue was $12.81 billion and diluted EPS was $3.41.
Management reported Core Operations revenue growth of 7.2% for the quarter, including organic growth of 6.1%, and EBITA of $1,040.2 millionb (15.9% margin). Cash flow and balance sheet activity were dominated by working capital and capital returns. Operating activities used $932.4 million in the first half, driven by $2.4 billion of operating capital use.
Omnicom repurchased $2,988.2 millionc of common stock in the six months, including a roughly $2.5 billion accelerated share repurchase, and paid $481.5 million in common dividends. Cash and cash equivalents fell to $3.34 billion from $6.88 billion at year-end, and total debt rose to $10.00 billion, lifting net debt to $6.67 billion from $2.24 billion. The company reported a Leverage Ratio of 2.4 times against a 3.5 times covenant limit.
The filing also discloses $99.5 milliond of Merger integration costs and $51.1 million of severance and repositioning costs in the first half of 2026, along with $34.3 million of losses on assets held for sale. Goodwill of $18.74 billion was not impaired at the May 1, 2026 annual test, and the purchase price allocation for IPG remains preliminary.
02—Key points
Key Highlights
- Revenue of $6.56 billion for Q2 2026 rose from $4.02 billion, reflecting the IPG Merger; six-month revenue was $12.81 billion versus $7.71 billion.
- Q2 operating income was $922.5 million (14.1% margin) versus $439.2 million; EBITA was $1,040.2 million (15.9% margin) versus $459.0 million.
- Diluted EPS was $2.08 for Q2 2026 versus $1.31; six-month diluted EPS was $3.41 versus $2.77.
- Core Operations revenue grew 7.2% in Q2 (organic growth 6.1%), and the filing expects FX to add 1.0% to full-year revenue.
- Share repurchases totaled $2.99 billion in the first half, including an accelerated share repurchase of about $2.5 billion under a $5.0 billion authorization.
- Net debt rose to $6.67 billion from $2.24 billion at December 31, 2025, after $3.0 billion of new notes issued and a $1.4 billion note repaid; the Leverage Ratio was 2.4 times against a 3.5 times covenant.
- Operating cash flow was negative $932.4 million for the first half, driven by a $2.4 billion operating capital outflow, and cash fell to $3.34 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Omnicom Group kept $0.09.
- Revenue$6.56B100.0%
- Cost of revenue−$5.26B80.2%
- Gross profit$1.30B19.8%
- Operating costs−$375.3M5.7%
- Operating income$922.5M14.1%
- Interest, other & tax−$337.7M5.1%
- Net income$584.8M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.56B$4.02B | +63.4% |
| Cost of Revenue | $5.26B$3.35B | +57.3% |
| Gross Profit | $1.30B$668.30M | +94.2% |
| SG&A Expenses | $209.00M$170.40M | +22.7% |
| Operating Expenses | $5.64B$3.58B | +57.7% |
| Operating Income | $922.50M$439.20M | +110.0% |
| Interest Expense | $123.20M$62.60M | +96.8% |
| Net Income | $584.80M$257.60M | +127.0% |
| EPS (Basic) | $2.09$1.32 | +58.3% |
| EPS (Diluted) | $2.08$1.31 | +58.8% |
| Shares Outstanding (Basic) | 279.90M194.90M | +43.6% |
| Shares Outstanding (Diluted) | 281.00M196.00M | +43.4% |
05—Questions
Frequently Asked Questions
How did the IPG merger affect Omnicom's reported results this quarter?
IPG's results have been included only since the November 26, 2025 Closing Date, so Q2 2026 includes a full second quarter of IPG while Q2 2025 does not. Revenue rose $2.55 billion to $6.56 billion, and the filing states that prior-period results are not directly comparable. Weighted average diluted shares increased to 281.0 million from 196.0 million.
What drove the increase in operating income and margin?
Operating income increased $483.3 million to $922.5 million, and operating margin rose to 14.1% from 10.9%. Management attributes the change to the Merger. Merger-related integration costs, severance and repositioning costs reduced operating income by $87.1 million in Q2 2026, compared with $154.8 million of similar costs in Q2 2025.
Why did cash decline and net debt increase?
Cash used in operations was $932.4 million for the six months, mainly from a $2.4 billion operating capital outflow tied to the working capital cycle. Discretionary uses included $2.99 billion of share repurchases and $481.5 million of common dividends. Debt issuances of about $2.4 billion were partly offset by the repayment of $1.4 billion of 3.600% Senior Notes due 2026, raising net debt to $6.67 billion.
Is the company meeting its debt covenant and what are its liquidity sources?
The filing states that Omnicom was in compliance with the Credit Facility's Leverage Ratio covenant of no more than 3.5 times, with a ratio of 2.4 times at June 30, 2026. Liquidity sources include a $3.5 billion revolving Credit Facility maturing November 26, 2030, commercial paper programs of up to $3.0 billion (U.S. Dollar) and $500 million (Euro), and uncommitted credit lines of $919.1 million. No Credit Facility draws or commercial paper were outstanding at quarter-end.
Are there any significant pending items that could affect future results?
The IPG purchase price allocation remains preliminary and may be adjusted within one year of the Closing Date. Goodwill of $18.74 billion was not impaired at the May 1, 2026 test, though the filing notes that a roughly 37% fair value decline would be needed to fail the test for one reporting unit. Severance liabilities of $341.0 million remain to be paid in cash, and management says the company does not expect material legal proceedings outcomes.
06—Continue