Omnicom helps companies create advertising, buy media space, reach customers and measure marketing results. In the second quarter ended June 30, 2026, sales from the businesses it plans to keep grew 6.1% after removing currency and acquisition effects. The combination with Interpublic is improving operating performance, while first-half cash outflows and heavy share repurchases have increased net debt—borrowings less cash—to $6.7 billion. Omnicom has substantial borrowing capacity, but keeping clients and turning profit into cash now matter more to its financial flexibility.
Research cutoff: October 16, 2026, New York time. Financial results cover the second quarter and first six months of 2026; later business developments are dated where discussed.
Sources: Omnicom second-quarter 2026 Form 10-Q, management discussion, pp. 19–20 and 30–32; July 28 investor presentation, pp. 3–4.
1. The retained businesses are growing beyond the merger’s increase in size
Omnicom’s underlying sales growth is meaningful, but much smaller than its reported 63.4% quarterly increase. The company acquired Interpublic, or IPG, on November 26, 2025. Its 2026 accounts include IPG, while the second-quarter and first-half 2025 accounts do not. The acquisition therefore explains most of the dramatic change in reported revenue and profit.
The reported accounts establish what the enlarged company earned. They also show that the improvement was stronger in the second quarter than across the full first half.
| Consolidated reported results; USD millions except margins and per-share amounts | Second quarter 2026 | Second quarter 2025 | First half 2026 | First half 2025 |
|---|---|---|---|---|
| Revenue | 6,562.5 | 4,015.6 | 12,805.4 | 7,706.0 |
| Operating profit | 922.5 | 439.2 | 1,568.7 | 891.8 |
| Operating margin | 14.1% | 10.9% | 12.3% | 11.6% |
| Net income attributable to Omnicom | 584.8 | 257.6 | 990.0 | 545.3 |
| Net margin attributable to Omnicom, calculated | 8.9% | 6.4% | 7.7% | 7.1% |
| Diluted earnings per share, USD | 2.08 | 1.31 | 3.41 | 2.77 |
Source: 2026 Form 10-Q, consolidated income statements, p. 2. Operating margin is operating profit divided by revenue; net margin uses profit attributable to Omnicom after minority owners’ share of subsidiary earnings.
A more useful sales comparison puts the two companies together in the earlier period. Against their combined second-quarter 2025 revenue of $6,552.4 million, current revenue increased only 0.2%, calculated. That comparison includes businesses Omnicom has sold or intends to sell. Removing those businesses from both periods reveals the growth of the retained portfolio, which management calls “Core Operations.”
Core revenue rose from $5,591.9 million to $5,995.0 million. Currency added $61.7 million, a small acquisition added $2.4 million, and organic growth added $339.0 million. Organic growth means the increase after those currency and acquisition effects are removed. It was 6.1% for the quarter and 5.0% for the first half.
Using the same portfolio definition in the July filing, first-quarter organic growth calculates to approximately 3.9%. The second quarter therefore showed a real acceleration within the retained businesses. This comparison is management’s combined presentation, rather than an SEC acquisition pro forma illustrating hypothetical transaction effects in 2025 under specified assumptions.
The practical distinction matters: Omnicom is increasing sales in its chosen businesses while reducing the size of the businesses it intends to leave. Future reported revenue can lose contributions from disposals even when the retained operations are growing.
Source: 2026 Form 10-Q, revenue-change reconciliation and combined-comparison qualifications, p. 20. First-quarter calculation appears in the calculation notes below.
2. Media is driving growth while creative advertising needs repair
The retained portfolio’s growth is concentrated in media and events, rather than shared evenly across services. Integrated Media combines media planning and buying with commerce, data and customer-targeting services. It generated $3,148.2 million, or 52.5%, of second-quarter core revenue.
Management described organic growth in this business as slightly above 10%. Public relations grew at a mid-single-digit rate. Experiential and other services grew above 10%, helped largely by World Cup event work. Health was flat, while creative advertising declined at a high-single-digit rate. These are management’s descriptions of growth within the retained businesses, not the acquisition-driven growth rates in the reported discipline tables.
Sources: July 28 investor presentation, p. 8; company-hosted second-quarter earnings-call transcript, p. 6.
Omnicom’s strategy is to make these services work together. Its Omni platform brings acquired Acxiom identity and data capabilities together with media, creative work and Flywheel’s commerce tools. A client can use the combination to identify an audience, prepare advertisements, place them and assess the response. Selling more connected services to an existing client can increase revenue without first winning an entirely new relationship.
The business also remains geographically dependent on the United States. The country supplied 59.0% of second-quarter core revenue. The acquisition has broadened the service portfolio, but the largest market still has considerable influence over demand.
Sources: 2026 Form 10-Q, business description, pp. 18–19; July 28 investor presentation, p. 9.
Artificial intelligence creates both an opportunity and a pricing challenge. Automating campaign preparation and analysis can let employees serve clients more efficiently. However, Omnicom’s contracts include hourly and project fees. If a job takes fewer hours, the benefit to Omnicom depends on how it prices the service and how much additional work it wins. Faster production by itself does not establish higher profit. The filing does not separately quantify AI revenue, AI profit or the return on Omni investment.
Source: 2025 Form 10-K, Note 2, “Revenue Recognition,” pp. F-11–F-12; 2026 Form 10-Q, AI strategy, p. 19. The pricing implications are an interpretation of the disclosed contract structure.
Publicis provides useful evidence that customers are buying these capabilities from competing suppliers. It reported 4.8% organic growth in second-quarter 2026 net revenue and highlighted investment in data, AI and connected marketing services. Its growth measure excludes pass-through revenue: client billings for costs passed on to outside suppliers. Omnicom’s reported revenue includes certain supplier costs when it controls the service delivered to the client. This supports the conclusion that rivals are also finding demand for connected services. The different revenue definitions prevent a direct comparison of the companies’ margins or market-share gains.
Sources: Publicis first-half 2026 results, July 16, pp. 1–3; Omnicom 2025 Form 10-K, Note 2, “Principal vs. Agent.”
A later client loss makes that competition concrete. In a spokesperson statement reproduced by MediaPost on September 3, Omnicom confirmed that PepsiCo had decided to move its media business elsewhere. The statement also pointed to media assignments won from clients including Adidas, IBM, Uber and CVS. The loss is evidence that broader capabilities do not eliminate customer turnover. The company did not disclose the lost fees, profit contribution or transition schedule, leaving the financial effect unquantified.
Source: Omnicom spokesperson statement reproduced in MediaPost, September 3, 2026, company statements near the end of the article. The evidence is the company’s own statement as reproduced by the publication.
On September 9, Omnicom appointed Andrew Robertson to lead Omnicom Advertising following Troy Ruhanen’s retirement. It identified Subway, American Express and BBVA as recent new clients of the advertising group. This gives the business fresh leadership and evidence of new assignments, but the announcement supplies no quantified revenue recovery. The important operating task is to convert those relationships into enough paid work to improve the declining creative business.
Source: Omnicom Advertising leadership announcement, September 9, 2026.
3. Integration is improving profit even after allowing for amortization
The retained businesses earned more profit on a comparable combined basis, although the largest improvement appears in an adjusted measure. Management is combining overlapping operations to reduce costs and directing investment toward the services it intends to retain.
Reported operating profit more than doubled in the quarter, but that includes acquired IPG earnings and lower restructuring and transaction charges. To test the operating improvement more carefully, the following comparison includes both companies in 2025 and removes businesses designated for disposal from both years.
| Retained businesses; management’s non-GAAP combined comparison, USD millions except margins | Second quarter 2026 | Second quarter 2025 | First half 2026 | First half 2025 |
|---|---|---|---|---|
| Adjusted operating profit | 953.6 | 852.6 | 1,672.6 | 1,469.1 |
| Adjusted operating margin | 15.9% | 15.2% | 14.4% | 13.5% |
| Adjusted EBITA | 1,068.8 | 887.4 | 1,902.3 | 1,540.5 |
| Adjusted EBITA margin | 17.8% | 15.9% | 16.4% | 14.2% |
Source: July 28 investor presentation, pp. 3–4 and 18–20. Adjusted operating profit removes specified restructuring, disposal and transaction costs. EBITA also removes specified amortization—the accounting expense that spreads the cost of acquired relationships, brands and other intangible assets over time. The 2025 combined figures are not an SEC Article 11 acquisition pro forma.
Quarterly core adjusted EBITA increased 20.4%, calculated. Keeping amortization as an expense gives a smaller, still positive increase of 11.8% in core adjusted operating profit. That second comparison is useful because acquiring IPG created substantial additional customer-relationship and other intangible assets, which now generate amortization expense.
Management attributed much of the margin improvement to acquisition cost savings. In July, it maintained targets of $900 million of cost reductions in 2026 and $1.5 billion by mid-2028, and said it had achieved slightly more than half the 2026 target. These are management’s estimates and targets, not an audited cash-savings reconciliation.
Sources: 2026 Form 10-Q, Notes 4–5 and operating-cost discussion, pp. 8–10 and 26–28; July 28 earnings-call transcript, pp. 3 and 13.
The reported cost structure shows progress without proving that every expense has become more efficient. Salaries and service costs consumed 71.8% of quarterly revenue, versus 73.0% a year earlier. But employee compensation alone was approximately stable as a share of revenue, and first-half employee compensation actually rose slightly as a percentage of sales. The mix of acquired businesses, supplier costs and reimbursed client expenses also changes these ratios. It would be misleading to attribute the entire margin gain to staff reductions.
Source: 2026 Form 10-Q, operating expense tables and explanations, pp. 25–27.
Selling businesses also improves the mix. The disposal group contributed $567.5 million of second-quarter revenue and $58.5 million of adjusted EBITA, a calculated margin of 10.3%, below the retained portfolio’s 17.8%. Removing it can raise the group’s percentage margin while removing positive profit dollars. These operations remain in reported results until disposal; they do not meet the accounting definition of discontinued operations.
First-half write-downs of businesses intended for sale were $34.3 million before tax, or $27.8 million after tax. Proceeds from completed sales were $168.2 million. Omnicom is accepting disposal costs and giving up some earnings to concentrate the company on its chosen services. The benefit depends on improving those retained operations enough to offset what is removed.
Sources: 2026 Form 10-Q, cash-flow statement, p. 5; Note 11, p. 14; July 28 investor presentation, p. 3.
Net income also benefited from a lower first-half effective tax rate: 27.0%, versus 29.4%. Omnicom attributes the difference mainly to acquisition costs that produced relatively little tax relief in 2025. Meanwhile, first-half net interest expense increased from $70.1 million to $165.3 million as the company carried IPG debt and additional borrowing. Lower tax expense relative to pretax profit helped earnings, while financing costs absorbed part of the operating improvement.
Source: 2026 Form 10-Q, Note 8 and “Net Interest Expense,” pp. 13 and 28.
4. Supplier and integration payments explain why profit did not become cash
First-half operations used $932.4 million of cash despite generating more than $1 billion of consolidated net income. Omnicom often collects money from advertisers and pays media providers and production companies on different dates. Those large payments can move cash by much more than the fee Omnicom earns for arranging the work.
| Profit-to-cash reconciliation; USD millions, consolidated | First half 2026 | First half 2025 |
|---|---|---|
| Net income, including minority owners’ share | 1,024.2 | 581.2 |
| Noncash and other adjustments, calculated total | 477.8 | 253.8 |
| Cash before changes in operating capital | 1,502.0 | 835.0 |
| Changes in operating capital | −2,434.4 | −1,411.7 |
| Reported operating cash flow | −932.4 | −576.7 |
| Capital expenditures, shown as a positive use of cash | 115.1 | 71.6 |
| Operating cash flow less capital expenditures, calculated | −1,047.5 | −648.3 |
Sources: 2026 Form 10-Q, cash-flow statement and Note 12, pp. 5 and 15; July 28 investor presentation, pp. 11 and 17. The 2025 column excludes IPG. “Operating capital” covers collection and payment timing and other operating asset and liability movements; the component calculations appear below.
Paying down supplier bills used $2,278.2 million of operating cash. A reduction in amounts customers owed released $856.1 million of cash, which covered only part of those payments. Work awaiting billing and other current assets absorbed another $527.7 million. Together, these movements show why collecting more old invoices did not prevent an operating cash outflow.
The balance sheet adds useful detail. Trade receivables fell from $14,398.0 million at December 31 to $13,462.8 million at June 30. However, unbilled fees, costs and contract assets increased from $1,208.8 million to $1,753.7 million. Omnicom therefore had more work recorded before billing even as already-billed receivables declined. Media and production costs within work in process fell, leaving total work in process up $250.7 million to $3,659.6 million.
Customers’ advance payments, consisting primarily of advance billings, rose from $1,727.6 million to $2,134.4 million; this balance increase does not establish additional cash funding. Other liabilities moved in the opposite direction. The cash-flow statement groups customer advances with taxes and other current liabilities; that combined line used $396.1 million. Balance-sheet changes also include currency, disposals and other noncash effects, so they should not be substituted directly for the cash-flow reconciliation.
Source: 2026 Form 10-Q, balance sheet, p. 1; contract balances, p. 7; Note 12, p. 15.
Seasonality explains part of this pattern. Omnicom says its funding needs typically peak in the second quarter because of incentive compensation, taxes and other payments. Before the IPG merger, first-half 2024 operating cash flow was negative $760.2 million, while full-year 2024 operating cash flow was positive $1,733.5 million. That history supports a seasonal explanation, although it cannot establish the size of the enlarged company’s second-half recovery.
Integration adds a separate cash burden. Omnicom paid $328.5 million during the first half against severance and contract-termination obligations. Much of this settled costs recognized earlier. Another $341.0 million remained payable at June 30. A lower current-period restructuring charge therefore does not mean that the related cash payments have finished.
Sources: 2026 Form 10-Q, Note 10 and liquidity discussion, pp. 14 and 30; SEC company facts, consolidated operating cash flow for January–June 2024, reported in accession 0000029989-25-000026; 2025 Form 10-K, consolidated cash-flow statement, 2024 comparative column.
One presentation choice needs particular care. Omnicom calls the $1,502.0 million before operating-capital changes “free cash flow,” and presents capital spending separately. This measure helps show cash generation before collection and payment timing, but it is not the cash left after paying suppliers and buying equipment. Using reported operating cash flow less the exact capital-expenditure line produces a $1,047.5 million deficit. Both measures can be reproduced; they answer different questions about cash available to the business.
Source: July 28 investor presentation, free-cash-flow reconciliation, pp. 11 and 17.
5. Buybacks used the cash cushion, while refinancing bought time
Omnicom has financing capacity, but first-half shareholder payments were funded from its wider cash resources rather than current operating cash generation. The board authorized a $5 billion repurchase program, including an accelerated purchase agreement intended to return capital to shareholders. The accelerated agreement delivered 32.2 million shares by its May settlement.
During the first half, actual cash paid for repurchases was $2,988.2 million and cash dividends to common shareholders were $481.5 million. Capital spending was $115.1 million. Alongside the operating cash deficit, these payments drew heavily on the opening cash balance and financing proceeds.
Cash fell from $6,881.1 million to $3,336.2 million. Total financing debt increased from $9,116.5 million to $10,002.0 million. Consequently, debt less cash increased by $4,430.4 million to $6,665.8 million. These debt amounts exclude supplier balances and lease obligations, which have different purposes but still require cash.
Source: 2026 Form 10-Q, cash-flow statement, p. 5; Note 16, p. 16; net-debt reconciliation, p. 31.
Repurchases also reduced the number of shares among which earnings are divided. However, the acquisition had previously issued 124.4 million shares to IPG shareholders. Second-quarter diluted weighted-average shares were therefore still 281.0 million, versus 196.0 million a year earlier. Net income attributable to Omnicom rose 127.0%, while diluted earnings per share rose 58.8%. Those are different growth rates because the profit now belongs to a much larger share base.
Stock-based compensation was $52.9 million for the first half, compared with $44.2 million. It was added back in the operating cash reconciliation because the expense did not require equivalent cash payment at recognition, but share awards still affect ownership. Repurchased shares are carried as treasury stock; issued shares remained 421.6 million throughout the first half. Buying shares into treasury reduces shares outstanding while leaving the issued share count unchanged.
Source: 2026 Form 10-Q, statements of equity and cash flows, pp. 4–5; Notes 3, 5 and 16.
March refinancing removed the $1.4 billion debt maturity that had been due in 2026. Omnicom issued $1.7 billion of dollar notes and €600 million of euro notes, using part of the proceeds for repayment and the remainder for general corporate purposes. The nearest remaining bond maturity is €500 million in 2027. The larger concentration comes in 2030–2031.
| Bond principal outstanding at June 30, 2026; USD millions at filing exchange rates | Principal due |
|---|---|
| 2027 | 569.2 |
| 2028 | 500.0 |
| 2029 | 400.0 |
| 2030 | 1,850.0 |
| 2031 | 1,869.2 |
| 2032–2048 | 4,995.0 |
| Total gross bond principal | 10,183.4 |
Source: 2026 Form 10-Q, Note 6, pp. 10–11. This schedule uses principal before discounts and issuance costs; it differs from the $9,953.2 million balance-sheet carrying amount of long-term debt.
The new financing also raises contractual interest costs. The three new dollar bonds require $83.6 million of annual interest payments, calculated from their principal and stated rates. The new euro bond requires €23.1 million annually. The retired dollar bond required $50.4 million annually. These are full-year contractual amounts, not the interest expense for the partial period since issuance. Actual first-half cash interest paid rose from $104.3 million to $207.7 million.
Liquidity remains substantial. At June 30, the $3.5 billion revolving credit facility was undrawn. Its debt covenant allows a maximum ratio of 3.5 times contractually defined earnings; Omnicom reported 2.4 times. That calculation includes adjustments specified in the agreement, so it should not be replaced with debt divided by the partial-year earnings shown in the income statement. The credit line also supports commercial paper, a form of short-term borrowing. They provide overlapping funding support rather than two wholly independent sources of available money.
Commercial paper outstanding reached $632.6 million during the first half, even though none remained at quarter-end. This shows the value of having funding available between collection dates. Approximately $2.1 billion of cash was held by foreign subsidiaries, with substantially all available subject to withholding taxes on repatriation. Omnicom can meet temporary funding needs, but another period of large buybacks would leave less room to absorb delayed client payments or integration costs.
Sources: 2026 Form 10-Q, Notes 6 and 12, pp. 10–11 and 15; liquidity and credit-market discussion, pp. 30–32; July 28 earnings-call transcript, p. 8, revolving-facility support for commercial paper.
6. Acquired relationships are the main asset behind the business case
Nearly half of Omnicom’s assets represent goodwill and other intangible assets, making future client earnings central to the acquisition’s success. Goodwill is the part of a purchase price that cannot be assigned to separately identified assets; in an agency business it includes the expected benefits of an assembled workforce and combined capabilities.
At June 30, goodwill was $18,740.7 million and other intangible assets were $4,834.5 million. Together they represented a calculated 47.2% of total assets. Customer relationships accounted for $3,723.6 million of the intangible balance. These assets support the strategy, but they cannot be used like cash to pay a supplier or repay debt.
Goodwill increased $99.3 million from December. The largest addition, $155.1 million, mainly reflected revisions to the preliminary IPG purchase accounting, including software and deferred taxes. It was not evidence of an equivalent new cash acquisition. Currency movements and disposals offset part of the increase. The net intangible balance fell $266.5 million; first-half amortization expense was $235.1 million, with other asset movements accounting for the remainder.
Source: 2026 Form 10-Q, balance sheet and Notes 4–5, pp. 1 and 8–10.
The purchase accounting was still provisional. Omnicom recorded $8,893.5 million of acquisition consideration, primarily shares, excluding assumed debt. The provisional allocation included $7,846.9 million of goodwill. That structure places considerable weight on the combined company’s ability to retain people, retain customers and sell additional services.
There is also meaningful evidence against an immediate goodwill write-down. Omnicom’s May 1 impairment test found no impairment. It reported that the most sensitive reporting unit would require an approximately 37% decline in estimated business value before failing the test. The test also passed under the disclosed higher discount-rate and lower long-term growth assumptions. These tests assess the carrying amounts of the operating businesses and depend on their future earnings.
Source: 2026 Form 10-Q, Note 5 and goodwill impairment review, pp. 9–10 and 33–35.
Physical investment is much smaller than the acquisition asset base. Net property and equipment declined from $1,010.3 million to $995.8 million despite $115.1 million of capital spending. The company identifies technology and the Omni platform as strategic investment areas, but does not provide a maintenance-versus-expansion split for that capital expenditure. The disclosed spending therefore supports a conclusion that Omnicom is investing in its operations, without quantifying how much expands capacity.
Office commitments remain relevant even after consolidation. Operating lease assets fell from $1,379.8 million to $1,263.5 million, while the separately reported long-term operating lease liability fell from $1,617.0 million to $1,409.2 million. Current lease liabilities sit within other current liabilities. The last detailed maturity schedule, at December 31, 2025, showed $2,566.5 million of undiscounted operating and finance lease payments, including $574.8 million scheduled for 2026. That is a year-end contractual schedule, not an updated June cash requirement. Reducing office space can lower future costs while leaving existing rent payments to settle.
Sources: 2026 Form 10-Q, balance sheet, cash-flow statement and strategy discussion; 2025 Form 10-K, Notes 13 and 17, office consolidation and future lease payments.
7. Customer payment obligations and unresolved taxes deserve attention
Client payment delays can become Omnicom’s own cash obligation. Its agencies can commit to media and production purchases far larger than their own service revenue. Some contracts protect Omnicom by making its supplier obligation conditional on receiving client payment. Others do not. In those cases, a client default can leave Omnicom responsible for the supplier bill.
Accounts payable were $18,148.0 million at June 30, compared with $20,659.5 million at December. This is principally an operating balance associated with serving clients, rather than bond financing. Credit insurance, advance payments and contractual protections reduce exposure, but their availability varies. The largest client represented only 2.0% of revenue over the twelve months to June, yet a diversified client base still leaves exposure to several clients slowing payments during the same downturn.
Source: 2026 Form 10-Q, balance sheet and “Credit Risk,” pp. 1 and 32–33.
Customer relationships also require frequent renewal. Most contracts run for one year or less, and the annual filing says substantially all arrangements allow cancellation on short notice, typically 90 days. Longstanding relationships and a broader service offering help compete for that work, but do not lock in future sales.
Sources: 2026 Form 10-Q, Note 2, p. 7; 2025 Form 10-K, Note 2, “Performance Obligations.”
Other obligations can also consume cash. Contingent acquisition payments increased from $214.9 million to $244.8 million, reflecting new obligations and remeasurement, less payments. Redeemable minority interests were $318.8 million, down from $363.2 million. These interests can require Omnicom to buy out subsidiary partners under the relevant agreements; they are presented separately from permanent equity because redemption may be outside Omnicom’s control.
Gross unrecognized tax benefits were $442.5 million, of which $426.5 million would affect the effective tax rate if resolved. These amounts represent uncertain tax positions, not a disclosed near-term cash payment schedule. Omnicom’s litigation note says it does not expect ordinary-course proceedings to have a material adverse effect. The filing provides no quantified range of reasonably possible losses; management’s assessment therefore remains qualitative.
Sources: 2026 Form 10-Q, balance sheet and Notes 8, 13 and 15; 2025 Form 10-K, Note 18, redemption rights of minority owners.
Data use is another operating constraint. Acxiom and Omni depend on collecting, using and connecting customer information within privacy and contractual rules. Omnicom’s annual filing describes an evolving set of privacy, security and data-protection requirements. The larger data offering can help win work, but preserving access to usable data and clients’ trust is part of the cost of delivering that service.
Source: 2025 Form 10-K, Item 1A, privacy, data protection and information-security risks.
8. The merger is producing operating gains; the next test is cash and retention
Omnicom’s retained operations show improving sales and profit, while its financial cushion has become smaller. The strongest evidence for the integration is that core profit increased even when amortization remained an expense. The strongest counterevidence is the uneven service performance and the subsequent loss of a major media relationship.
In July, management raised its full-year organic-growth target for ongoing operations to 5%, from 4%–4.5%. It also expected to complete the planned disposals by year-end. These remain management’s plans, rather than completed full-year outcomes. Successful execution would leave a more focused business with lower operating costs, while removing some revenue and positive earnings from the sold operations.
Source: July 28 earnings-call transcript, p. 5.
The business assessment is therefore constructive on operating integration and more demanding on cash allocation. Borrowing capacity and the absence of a remaining 2026 bond maturity provide time. That time is most useful if client collections improve, remaining integration payments decline and new work offsets lost assignments. If creative weakness spreads to media, or supplier and restructuring payments continue to outrun collections, the pace of discretionary shareholder payments would become the clearest way to preserve flexibility.
Reporting basis:
This analysis uses Omnicom Group Inc. and subsidiaries’ unaudited consolidated U.S. GAAP Form 10-Q for the period ended June 30, 2026, filed July 29, 2026; CIK 0000029989; accession 0000029989-26-000019. “Second quarter” means April 1–June 30; “first half” means January 1–June 30. Balance-sheet comparisons use December 31, 2025. The IPG acquisition was completed November 26, 2025, so the earlier quarterly and half-year reported results exclude IPG. Dollar amounts are U.S. dollars unless euros are explicitly identified.
The selected filing text supplies the financial-statement and footnote foundation. Filing identity and dates were checked against the SEC filing index and SEC submissions record. Historical XBRL operating-cash facts were checked for the consolidated U.S. GAAP concept, USD units and actual start/end dates; a filing’s fiscal-period label was not used as a substitute for the fact’s dates.
The October 16 research cutoff governs inclusion, not a claim that every subsequent development was verified. The later operating evidence used here consists of the September 3 company statement and September 9 leadership announcement. No third-quarter financial results or post-July revision to management’s financial guidance is established by the sources used in this report.
Calculation notes:
A. Sales and profit comparisons
All inputs below are USD millions. Quarterly core revenue reconciles as 5,591.9 prior-year core revenue + 61.7 currency + 2.4 acquisitions + 339.0 organic growth = 5,995.0. First-half core revenue reconciles as 10,856.6 prior-year core revenue + 206.0 currency + 2.4 acquisitions + 545.7 organic growth = 11,610.7. Organic growth rates divide the organic increase by the corresponding prior-year core revenue.
First-quarter organic growth on the July portfolio definition is the first-half organic increase less the second-quarter increase, divided by the equivalent first-quarter base: (545.7 − 339.0) ÷ (10,856.6 − 5,591.9) = 3.9%. This is a calculation from the later filing’s consistent portfolio, not a quotation of the original first-quarter release.
Quarterly core adjusted operating-profit growth is (953.6 ÷ 852.6) − 1 = 11.8%. Core adjusted EBITA growth is (1,068.8 ÷ 887.4) − 1 = 20.4%. Margins use the revenue of the same businesses and period. Small differences between changes calculated from unrounded margins and subtraction of displayed margins arise from rounding.
Sources: 2026 Form 10-Q, p. 20; July 28 investor presentation, pp. 3–4.
B. What the adjusted earnings measures remove
The first table reconciles reported operating profit to company-defined adjusted EBITA. These are pretax amounts for all consolidated operations, including businesses being sold. The 2025 columns contain Omnicom alone, unlike the combined core-business comparison in Section 3.
| USD millions; add-backs shown as positive amounts | Second quarter 2026 | Second quarter 2025 | First half 2026 | First half 2025 |
|---|---|---|---|---|
| Reported operating profit | 922.5 | 439.2 | 1,568.7 | 891.8 |
| Specified amortization added back | 117.7 | 19.8 | 235.1 | 41.6 |
| Severance and repositioning added back | 47.0 | 88.8 | 51.1 | 88.8 |
| Disposal losses added back | 0.0 | 0.0 | 34.3 | 0.0 |
| Integration and acquisition costs added back | 40.1 | 66.0 | 99.5 | 99.8 |
| Adjusted EBITA | 1,127.3 | 613.8 | 1,988.7 | 1,122.0 |
The after-tax reconciliation below uses net income attributable to Omnicom. It shows the actual tax treatment of each adjustment instead of applying one assumed tax rate to every item.
| USD millions except EPS; after-tax adjustments | Second quarter 2026 | Second quarter 2025 | First half 2026 | First half 2025 |
|---|---|---|---|---|
| Reported net income attributable to Omnicom | 584.8 | 257.6 | 990.0 | 545.3 |
| Severance and repositioning added back | 35.3 | 67.2 | 38.3 | 67.2 |
| Disposal losses added back | 0.0 | 0.0 | 27.8 | 0.0 |
| Integration and acquisition costs added back | 38.0 | 61.6 | 84.8 | 94.3 |
| Specified amortization added back | 87.1 | 14.7 | 174.0 | 30.8 |
| Adjusted net income attributable to Omnicom | 745.2 | 401.1 | 1,314.9 | 737.6 |
| Diluted weighted-average shares, millions | 281.0 | 196.0 | 290.2 | 197.1 |
| Adjusted diluted EPS, USD | 2.65 | 2.05 | 4.53 | 3.74 |
These adjustments do not make all remaining profit recurring. They retain normal business costs, share compensation and interest in adjusted net income. They also remove expenses that can still require cash. The amortization exclusion differs slightly by period: 2025 total intangible amortization was $23.8 million for the quarter and $49.6 million for the first half, but the EBITA add-backs were $19.8 million and $41.6 million. In 2026 the add-backs equal total intangible amortization. The tables preserve the company’s disclosed definitions.
Sources: 2026 Form 10-Q, Note 4, p. 9, and earnings adjustments, pp. 21–22 and 27–30; July 28 earnings release, non-GAAP earnings reconciliations; July 28 investor presentation, pp. 18–21.
C. Cash movements and capital spending
The following amounts explain the adjustments between profit and cash before collection and payment timing. Charges added back here can still lead to cash payments elsewhere in the reconciliation.
| Consolidated cash-flow adjustments; USD millions | First half 2026 | First half 2025 |
|---|---|---|
| Depreciation and right-of-use asset amortization | 98.1 | 68.1 |
| Intangible asset amortization | 235.1 | 49.6 |
| Share-based compensation | 52.9 | 44.2 |
| Severance and repositioning charges | 51.1 | 88.8 |
| Disposal losses | 34.3 | 0.0 |
| Other adjustments | 6.3 | 3.1 |
| Total adjustments, calculated | 477.8 | 253.8 |
The 2026 operating-capital outflow reconciles as 856.1 from receivables − 527.7 for work in process and other current assets − 2,278.2 for supplier balances − 396.1 for customer advances, taxes and other current liabilities − 88.5 for other assets and liabilities = −2,434.4.
Cash and cash equivalents reconcile as 6,881.1 opening balance − 932.4 operating outflow + 46.0 investing inflow − 2,569.0 financing outflow − 89.5 currency effect = 3,336.2 closing balance. The statement does not add a separate restricted-cash balance to either endpoint.
Investing cash flow is −115.1 capital expenditures − 7.1 acquisitions net of cash acquired + 168.2 disposal proceeds = 46.0. Financing includes 2,384.9 borrowing proceeds − 1,400.0 debt repayment = 984.9 of net bond funding before other financing activities. The alternative cash measure used in this report deducts only the statement’s capital-expenditure line from reported operating cash flow; it does not deduct acquisitions or net disposal proceeds against that spending.
Source: 2026 Form 10-Q, cash-flow statement and Note 12, pp. 5 and 15.
D. Balance-sheet and equity checks
At June 30, the balance sheet reconciles in USD millions as 49,903.0 assets = 39,312.0 liabilities + 318.8 redeemable minority interests + 10,272.2 permanent equity. At December 31, it reconciles as 54,415.3 assets = 41,359.1 liabilities + 363.2 redeemable minority interests + 12,693.0 permanent equity. Redeemable minority interests sit outside permanent equity and must be included separately in this check.
The decline in Omnicom shareholders’ equity came mainly from repurchases, despite positive profit. Retained earnings are accumulated profit after dividends. Paid-in capital records shareholder contributions and related share transactions. Treasury stock records repurchased shares as a deduction from equity:
| Omnicom shareholders’ equity; USD millions | December 31, 2025 | First-half change | June 30, 2026 |
|---|---|---|---|
| Common stock at par value | 63.2 | 0.0 | 63.2 |
| Additional paid-in capital | 9,424.4 | 167.0 | 9,591.4 |
| Retained earnings | 10,782.4 | 538.4 | 11,320.8 |
| Accumulated other comprehensive loss | −1,265.8 | −31.8 | −1,297.6 |
| Treasury stock, deducted from equity | −6,958.4 | −3,057.6 | −10,016.0 |
| Total Omnicom shareholders’ equity | 12,045.8 | −2,384.0 | 9,661.8 |
Retained earnings increased by 990.0 profit − 451.6 dividends declared = 538.4. Declared dividends differ from the 481.5 actually paid because declaration and payment dates differ.
Additional paid-in capital increased by 4.6 minority-interest ownership changes + 40.1 redeemable-interest adjustments + 52.9 share compensation + 74.0 repurchase accounting − 4.6 stock-plan issuances = 167.0. The accelerated-repurchase settlement affected the allocation between equity accounts. Treasury stock changed by 33.9 stock-plan issuances − 3,091.5 repurchase entries = −3,057.6. These are equity-account entries, not the cash-flow statement’s repurchase payments.
Other comprehensive loss increased by 32.8 from currency translation, partly offset by 1.0 from hedge and pension reclassifications. Permanent minority interests fell from 647.2 to 610.4, completing the reconciliation to total permanent equity. These movements explain why total equity fell even though the business reported a profit.
Source: 2026 Form 10-Q, balance sheet, equity statement and Notes 14 and 16, pp. 1, 4 and 15–16.
This report is for general information and business analysis. It is not investment advice.