Omnicom Group Inc. Q1 FY2026 earnings call

• Post-interpublic acquisition, momentum and cohesive growth. Strategic portfolio realignment with planned asset sales, $1B disposed in Q1. - Excluded assets held for sale from core operations. Adjusted EBITDA margin increased to 14.8%. Non-GAAP adjusted EPS $1.90 per share, up 11.8%. - Integrated over 20 major agency brands, won new business like IBM, GSK, etc., and expanded with existing clients. - Scaled AI-enabled Omni platform across the organization, delivering on multiple fronts. - Made progress in collaboration across the group, moving into hub locations, deploying common HR and IT platforms, migrating teams to shared workflow systems. - Aim for $900M cost reduction synergies in 2026 and $1.5B by mid-2028, $5B share repurchases over next 12 months including $2.5B accelerated share repurchase program.

Core operations revenue was $5.6 billion in Q1, up $345M from Q1 2025 core operations revenue for combined Omnicom and Interpublic, with organic revenue growth of 3.9%. Adjusted EBITDA margin increased 240 basis points to 14.8%. Core operations revenue by discipline: Integrated media was ~52% of revenues, advertising 17%, health 10%, PR 12%, experiential and other 10%. Integrated media led core ops revenue growth in high single digits, PR and experiential and other mid-single digits, health positive, advertising down. Core operations revenue by region: U.S. 61% of revenues, growth mid-single digits; Europe Latin America and Asia Pacific up low single digits; UK and Middle East and Africa declined.

• Expect annual tax rate to be 26%. - Plan to complete $5B share repurchase over next 12 months. - On organic growth, on track to achieve operating plans and targets including 4% constant currency growth reference as stated at Investor Day. - Expect quarters to roll out with higher double-digit EPS performance than first quarter.

• Ongoing conflict in the Middle East represents less than 2.5% of revenue, creating uncertainty in the region and globally. Priority is safety of people in the region and monitoring developments to adapt to impact on business.

Q: Steven Cahill asked about revenue by discipline trends and adjusted EPS growth guidance.

A: Integrated media grew high single digits, PR and experiential mid-single digits, health positive, advertising down. EPS grew almost 12% in Q1, expect higher double-digit quarters ahead.

Q: David Karnovsky asked on healthcare, PR integration experience and constant currency growth update.

A: Healthcare and PR units performing well, on track to achieve operating plans including constant currency growth reference.

Q: Jason Bazinet asked on focus on core operations, disposed businesses performance.

A: Focus on core operations for growth, disposed businesses revenue down due to timing of dispositions, not performance.

Q: Tim Nolan asked on media planning direct publisher relations and creative advertising tradeoff.

A: Working on direct relationships with publishers, agentic AI makes creative people more productive, advertising down not due to tradeoff with production.

Q: Michael Nathanson asked on Axiom integration and core pro forma expense detail.

A: Axiom data quality helps with customer ID methodology, working towards providing core pro forma expense detail.

Q: Adrian de St. Hilaire asked on disposal proceeds visibility and competitive pricing.

A: Difficult to estimate disposal proceeds, win more than fair share in competitive pricing, analyze losses for next opportunities