Omnicom’s first results post-IPG show merger costs bite, underlying performance holds

Omnicom’s first earnings report following its acquisition of Interpublic Group delivered a split-screen result: headline losses driven by merger-related charges, but resilient underlying profitability.

For the fourth quarter of 2025, Omnicom posted revenue of US$5.5 billion, up 27.9% year-on-year. The jump was largely attributed to constant currency growth and the inclusion of one month of contribution from Interpublic, whose acquisition closed on November 26.

Yet the topline strength contrasted sharply with the bottom line. Omnicom reported a net loss of US$941 million and an operating loss of US$977 million. The red ink was not unexpected.

Merger-related expenses weighed heavily on the quarter, including US$186.7 million in transaction costs, US$1.1 billion in repositioning charges and a US$543.4 million loss tied to planned dispositions. Omnicom also absorbed one month of IPG operating expenses. Strip those items out, however and the picture looks materially different. 

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Earnings before interest and tax climbed 28.6% to US$929 million. Margins remained stable at 16.8%, effectively flat on the prior year’s 16.7%.In other words: integration costs crushed earnings, but core operations continued to expand.

For the full year, Omnicom reported revenue of US$17.3 billion. The company recorded a small net loss of US$54.5 million.

The earnings release underscores the financial reality of mega-mergers in holding company land: short-term pain in exchange for promised scale efficiencies.

CEO John Wren leaned heavily into that narrative, highlighting three priorities - portfolio simplification, Connected Capability alignment and an aggressive uplift in cost synergies.

“Since the successful closing of the Interpublic acquisition on November 26, we made key leadership and brand announcements, refreshed our enterprise growth strategy and launched the next generation of our Omni data and technology platform,” Wren said.

“We have also executed on three key priorities. First, we are simplifying and aligning our portfolio of businesses to prioritise Connected Capability delivery, growth, and profitability.

“Second, we are doubling our total cost synergy target to US$1.5 billion, including US$900 million in 2026. And third, our Board has authorised a US$5.0 billion share buyback, including a US$2.5 billion Accelerated Share Repurchase. We expect these catalysts to positively transform our business performance this year and beyond.”

The results also offer clues about the combined group’s shape. Media and advertising accounted for 60% of Q4 revenue, reinforcing the central role of Omnicom’s media operations at a time when scale, data and automation dominate client conversations.

Precision marketing (10.3%), Public relations (9.1%), Healthcare (7.3%) and experiential (6.5%) rounded out the portfolio - categories where Omnicom and IPG historically competed head-to-head and where consolidation may unlock cross-selling opportunities.

Geographically, the United States remained the engine room at 52% of revenue, followed by Europe and the UK. Asia Pacific contributed 10.7%, a region likely to attract increased attention as global clients rebalance growth expectations.