Publicis Groupe (AO) | Buy | H1 earnings: first read

Research evidence excerpt

Publicis Groupe (AO) | Buy | H1 earnings: first read

lon (where growth

cumulative EPS growth than multiple expansion, which remains could slow once third-party cookie phase-out is complete).

at modest levels. Advertisers could use agentic AI to internalise media-buying.

Catalysts Only 10% of group revenues outcome-based, so lower hours

Likely to lead agency growth again in 2026 after bumper new biz charged through AI efficiencies could still be dilutive to group

wins in 2025, mostly still to be billed. organic growth, the main share price driver.

LiveRamp improves growth profile.. CEO had health scare in 2022.

OMC/IPG merger means internal focus an opportunity for peers.

Key data charts

Price performance Sales split by region Sales split by division

SWOT analysis

Strengths Weaknesses

Edge in transactional data drove market-leading new biz wins 2019-25. Subscale in emerging market businesses.

Has by far best and most diversified mix of ad agency peers. Average advertiisng agency industry growth is currently around zero.

Strong balance sheet, stepping up share buybacks. Accessing data from walled gardens of Google, Facebook, Amazon.

Ahead of peers in personalsiaton at scale (Epsilon), AI (core AI). Challenges in running a mainly US-based people business from Paris.

Opportunities Threats

LiveRamp opens up new revenue streams and improves growth profile. Success of LiverAmp integration dependent on perception of neutrality.

Marketing to AI agents can boost growth and drive market share gains. GenAI perhaps dilutive to Creative, agentic AI to upturn media-buying?

Strong momentum in new business wins (top in six of last seven years). Growth is narrow-based around Media and Epsilon, Sapient negative YTD.

OMG/IPG merger could take 3 years to integrate, opportunity for peers.