01—Abstract
Summary
Summary of the 10-Q filed October 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Omnicom Group Inc. reported a sharply larger third quarter and first nine months of 2026, driven primarily by the November 2025 merger with The Interpublic Group of Companies, Inc. (IPG).
Revenue for the three months ended September 30, 2026 rose to $6.42 billiona from $4.04 billion, and operating income rose to $991.7 million from $530.1 million. Net income attributable to Omnicom was $656.0 million, or $2.38 per diluted share, versus $341.3 million, or $1.75, a year earlier. For the nine months, revenue was $19.23 billion and diluted EPS was $5.77, compared with $4.51.
The filing states that results are not comparable to prior periods because IPG is included only from the closing date forward. Organic revenue growth for core operations was 7.2%b in the quarter and 5.8% for the nine months, on a combined basis. Balance sheet and cash flow shifted toward capital returns and debt.
Cash and cash equivalents fell to $3.80 billionc from $6.88 billion at December 31, 2025, and long-term debt rose to $9.39 billion from $7.66 billion, after new senior notes were issued and a $1.4 billion 2026 note was repaid. Net cash provided by operating activities was $37.8 million for the nine months, against a use of $2.3 billion for operating capital. Share repurchases totaled $3.21 billion in cash during the nine months, including an accelerated share repurchase program of approximately $2.5 billion.
Net debt increased to $6.22 billiond. The company reported a Leverage Ratio of 2.3 times against a 3.5 times covenant limit. The filing also details merger-related costs, dispositions, and the purchase price allocation, which the company says is not yet final.
Integration and acquisition-related costs were $40.4 million in the third quarter and $139.9 million for the nine months, and the company recorded a net gain on dispositions of $106.8 million in the quarter. Management stated that its disclosure controls and internal control over financial reporting were effective as of September 30, 2026.
02—Key points
Key Highlights
- Revenue of $6.42 billion for Q3 2026, up from $4.04 billion, reflecting the IPG merger; nine-month revenue was $19.23 billion versus $11.74 billion.
- Operating income of $991.7 million for Q3 2026 (15.4% operating margin) versus $530.1 million (13.1%) a year earlier; EBITA of $1.11 billion, a 17.3% EBITA margin.
- Net income attributable to Omnicom of $656.0 million, or $2.38 diluted EPS, for Q3 2026, versus $341.3 million, or $1.75, in Q3 2025.
- Core operations organic revenue growth of 7.2% for Q3 and 5.8% for the nine months, on a combined basis with IPG.
- Nine-month operating cash flow was only $37.8 million, with a $2.3 billion use of operating capital, while cash and equivalents fell to $3.80 billion.
- Repurchases of common stock were $3.21 billion in cash for the nine months, including an approximately $2.5 billion accelerated share repurchase, under a $5.0 billion authorization approved in February 2026.
- Long-term debt rose to $9.39 billion, net debt to $6.22 billion, and the Leverage Ratio was 2.3 times against a 3.5 times covenant maximum.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Omnicom Group kept $0.10.
- Revenue$6.42B100.0%
- Cost of revenue−$5.06B78.8%
- Gross profit$1.36B21.2%
- Operating costs−$367.5M5.7%
- Operating income$991.7M15.4%
- Interest, other & tax−$335.7M5.2%
- Net income$656.0M10.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 23, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $6.42B$4.04B | +59.1% |
| Cost of Revenue | $5.06B$3.28B | +54.2% |
| Gross Profit | $1.36B$754.30M | +80.2% |
| SG&A Expenses | $200.90M$163.50M | +22.9% |
| Operating Expenses | $5.43B$3.51B | +54.9% |
| Operating Income | $991.70M$530.10M | +87.1% |
| Interest Expense | $132.80M$60.40M | +119.9% |
| Net Income | $656.00M$341.30M | +92.2% |
| EPS (Basic) | $2.39$1.76 | +35.8% |
| EPS (Diluted) | $2.38$1.75 | +36.0% |
| Shares Outstanding (Basic) | 274.00M193.80M | +41.4% |
| Shares Outstanding (Diluted) | 275.40M194.90M | +41.3% |
05—Questions
Frequently Asked Questions
How much of the year-over-year revenue increase came from the IPG merger rather than underlying growth?
The filing attributes the bulk of the increase to the merger with IPG, which closed on November 26, 2025. For the third quarter, revenue rose $2.4 billion, and the filing states this was primarily driven by the IPG acquisition. Core operations organic growth, calculated on a combined basis, was 7.2% for the quarter and 5.8% for the nine months.
Why did cash and cash equivalents decline so much in 2026?
Cash fell from $6.88 billion at December 31, 2025 to $3.80 billion at September 30, 2026. The filing cites $4.4 billion of discretionary spending in the first nine months, mainly share repurchases of $3.17 billion net of stock plan proceeds, dividends of $703.3 million, and capital expenditures of $172.8 million. Operating cash flow of $37.8 million was reduced by a $2.3 billion use of operating capital.
How has Omnicom's debt position changed?
Long-term debt, including the current portion, rose to $9.96 billion from $9.05 billion. In March 2026 the company issued $400 million of 2029 notes, $700 million of 2033 notes, $600 million of 2036 notes, and €600 million of 2034 notes, and used proceeds to redeem its $1.4 billion 3.600% notes due 2026. Net debt increased to $6.22 billion from $2.24 billion at December 31, 2025, and the company states it is in compliance with its 3.5 times leverage covenant at 2.3 times.
What one-time items affected the reported results this quarter?
In the third quarter of 2026, severance and repositioning costs were $84.7 million and integration costs were $40.4 million, both tied to the merger. These were partly offset by a $106.8 million net gain on asset dispositions and held-for-sale activity. Together, these items reduced operating income by $18.3 million, or $0.03 per diluted share.
Is the purchase price allocation for the IPG merger final?
No. The filing states that the purchase accounting process has not been completed as of September 30, 2026, and that the valuation of certain assets and liabilities, including identifiable intangible assets, has not been finalized. Goodwill of $7.87 billion was recorded on a preliminary basis, and the measurement period will not exceed one year from the closing date.
06—Continue