Omnicom Group (OMC)

Communication Services · $23.8B market cap · SEC CIK 0000029989

Next reports on Feb 16, 2027, after the close, with analysts expecting $3.10 in earnings per share.

52-week range $66.33 to $89.57. 1% below its 52-week high and 34% above its low.

The case for OMC

• Revenue up 46.7% on the year.
• Generated $2.8B of free cash flow in FY2025, 16% of revenue.
• Free cash flow of 11.7% of its market value a year: a lot of cash for the price.
• Pays a 3.5% dividend while you wait.
• Moves less than the market (beta 0.72).
• Within 1% of its 52-week high: the trend is up.

The case against

• Earnings per share down 73.5%.
• Priced at 33.8× earnings while earnings per share are shrinking (−73.5%).
• Return on equity of only 7%.
• Net margin of 3.0% leaves very little room for error.
• Current liabilities exceed current assets (ratio 0.91).

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.

The financials

The financials, five years deep

Pulled from Omnicom Group's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Omnicom Group says it does

Merger with IPG On November 26, 2025 (the “Closing Date”), Omnicom completed its Merger with IPG (the “Merger”). As previously reported, on December 8, 2024, Omnicom entered into an Agreement and Plan of Merger (the “Merger Agreement”) with IPG and EXT Subsidiary Inc., a Delaware corporation and a direct wholly owned subsidiary of Omnicom (“Merger Sub”). On the Closing Date, pursuant to the terms and conditions of the Merger Agreement, Merger Sub merged with and into IPG, with IPG continuing as the surviving corporation and a direct wholly owned subsidiary of Omnicom. Upon the Merger, each outstanding share of IPG common stock (other than certain excluded shares) converted into the right to receive 0.344 shares of Omnicom common stock and cash in lieu of fractional shares. Following the closing of the Merger, legacy Omnicom shareholders owned approximately 60.6% of the combined company and legacy IPG shareholders owned approximately…

Risk factors OMC lists in its 10-K

• Adverse economic conditions, a reduction in client spending, a deterioration in the credit markets or a delay in client payments could have a material effect on our business, results of operations and financial condition
• A period of sustained inflation across our major markets could result in higher operating costs
• Geopolitical events, international hostilities or acts of terrorism could have a material adverse effect on our business, results of operations and financial condition
• Global public health crises or pandemics or other similar health crises could adversely impact our business, results of operations and financial condition
• Acquiring new clients and retaining existing clients depends on our ability to avoid and manage conflicts of interest arising from other client relationships, retaining key personnel and maintaining a highly skilled workforce
• The loss of several of our largest clients could have a material adverse effect on our business, results of operations and financial condition
• We rely extensively on information technology systems and data, and cybersecurity incidents could adversely affect us
• We are subject to risks related to our use of generative AI and agentic AI, new and emerging technologies, which are in the early stages of commercial use and subject to evolving legislative and regulatory requirements
• Our liquidity, long-term financing needs, credit rating and access to capital markets is dependent on our agencies, operating cash flow
• Currency exchange rate fluctuations have impacted, and in the future could impact, our business, results of operations and financial condition
• We operate in high-growth markets and developing countries, which often carry greater risks and uncertainties that could have a material adverse effect on our business, results of operations and financial condition
• Uncertainties associated with the Merger may cause a loss of our management personnel and other key employees, which could adversely affect our business, results of operations and financial condition
• We have incurred and are expected to continue to incur significant costs in connection with the Merger and integration of IPG, which may be in excess of those anticipated by us
• The failure to integrate our and IPG’s businesses and operations successfully in the expected time frame may adversely affect our business, results of operations and financial condition
• The Merger may result in a loss of our clients, service providers, vendors, joint venture participants and other business counterparties and may result in the termination of existing contracts
• We may fail to realize all of the anticipated benefits of the Merger
• Our future results following the Merger will suffer if we do not effectively manage expanded operations
• We may be unsuccessful in evaluating material risks involved in completed and future acquisitions
• Our goodwill is an intangible asset that may become impaired, which could have a material adverse effect on our business, results of operations and financial condition
• Expectations relating to environmental, social and governance considerations expose us to potential liabilities, reputational harm and other unforeseen adverse effects on our business
• Changes in tax rates, tax laws, regulations or interpretations, or adverse outcomes of tax audits or proceedings could materially adversely affect our effective tax rate, results of operations, financial condition and cash flows

Filings

Other Communication Services companies