Omnicom sees stable macro, reaffirms growth forecast and synergy targets ahead of IPG merger
For Q2 2025, Omnicom reported 8% organic growth in media and advertising, with 'solid growth in most geographies' and strongest performance in the media segment.
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Omnicom Group Inc. is entering the second half of 2025 with cautious optimism, reaffirming its full-year guidance and maintaining strong momentum as it nears the completion of its blockbuster merger with Interpublic Group (IPG).
“We remain fully on track to complete the transaction in the second half of this year,” CEO John Wren said. “There’s a genuine sense of anticipation and excitement about the opportunities our combined company will create.”
For Q2 2025, Omnicom reported 3% organic revenue growth, led by an 8% rise in media and advertising and 5% growth in precision marketing. Adjusted EBITDA margin remained flat year-over-year at 15.3%, while adjusted EPS rose 5.1% to $2.05.
“We’re very comfortable with the guidance that we previously given you, and we’re sticking with it,” Wren said, adding that most macro pressures—particularly tariff fears—seem to have softened. “At Cannes this year, among 37,000 industry professionals, I didn’t hear the word ‘tariff’ once.”
CFO Phil Angelastro noted that clients have had varying reactions to tariff-related uncertainty, depending on geography and industry. “Some paused spend when the first round of tariffs hit, others pulled forward investments. But broadly, marketing decisions are moving forward.”
Looking ahead, Omnicom expects full-year organic growth in the 2.5%–4.5% range, and EBITDA margin expansion by 10 basis points over last year’s 15.5%.
Meanwhile, the company is actively restructuring in preparation for the IPG merger. In Q2, acquisition-related costs of $66 million in Q2 2025 increased from the $34 million incurred in Q1 of 2025, and repositioning costs were $89 million during Q2 of 2025.
“These actions are separate from the $750 million synergy target we’ve set for post-close,” said Angelastro. “We continue to expect to achieve that and are evaluating ways to accelerate savings ahead of the closing.”
The IPG acquisition also promises to expand Omnicom’s footprint into new client segments. “IPG has deeper ties to many CPG brands, and that opens new doors for our platforms like Flywheel,” Angelastro added.
Though PR and healthcare revenues dipped this quarter, Omnicom sees stabilization ahead, particularly as global elections and patent cycles normalize.
The U.S. remained Omnicom’s strongest market, followed by gains in Asia-Pacific and Continental Europe.
Precision marketing grew 5%, including strong performance in its digital, CRM, and experienced design agencies in the U.S., offset by mixed performance internationally. Public relations declined 9%, primarily in the U.S., due largely to weaker performance in its global networks and some reduction relative to the benefit in 2024 from national election spend. "We expect to see a difficult comp for the rest of 2025. Healthcare revenues were down 5%, and this includes our having now cycled through a large prior period client loss, as well as work winding down on brands that are close to loss of patent protection. We continue to expect improved performance as the year progresses. Branding and retail commerce was down 17%," highlighted Angelastro.
Branding experienced continued pressure from uncertain market conditions impacting both new brand launches and rebranding projects, as well as continued slow M&A activity, while retail commerce in the quarter slowed, he added. Meanwhile, experiential grew 3%, driven by good performance in the U.S., offset by a challenging comparison to last year with the Olympics, as well as declines in the Middle East and China. Lastly, execution and support increased 1%, driven by strong growth in the U.S., offset by negative performance in the UK and Continental Europe.
On the capital side, Omnicom maintained a conservative position with $3.3 billion in cash and no debt maturities in 2025. Share buybacks were limited to $600 million under a mutual agreement with IPG during the pre-merger period.
“We expect to be a lot more flexible once the deal closes,” said Wren. As the merger heads into the final stages, Wren’s confidence is evident. “We're planning the integration. Where we have to reorganize ourselves to make it easier to ingest our new colleagues, that's what we're doing.”
With strong financial footing, an AI-led competitive edge, and a historic consolidation on the horizon, Omnicom is positioning itself not just for stability—but for sustained market leadership.
