Omnicom Group: Organic of 6.1% a Strong Beat and Reflective of a Changed Business Mix, Though We Reduce 2026 Margin and EPS

Research evidence excerpt

Omnicom Group: Organic of 6.1% a Strong Beat and Reflective of a Changed Business Mix, Though We Reduce 2026 Margin and EPS

J P M O R G A N North America Equity Research

28 July 2026

Omnicom Group

Organic of 6.1% a Strong Beat and Reflective of a Overweight

Changed Business Mix, Though We Reduce 2026 OMC, OMC US

Margin and EPS Price (28 Jul 26):$86.22

Price Target (Dec-27):$115.00

OMC reported Q2 results with organic growth of 6.1%, up from 3.9% in Q1 and Media, Entertainment and

well ahead of our 4.0% forecast. Relative to the prior quarter, the better trend looks Advertising

to be a function of acceleration in Media and a cyclical uplift from World Cup David Karnovsky, CFA AC

events, partly offset by softer Advertising. Management flowed through the (1-212) 622-1206

strength to the full year, raising the guide to 4.5-5.0% from ~4%, and implying david.karnovsky@jpmorgan.com

4.5% in 2H (vs. 5.0% YTD). In discussing the better organic trend, OMC referred Alexey Philippov, CFA

to new business wins, expansion of services with existing clients, the disposition (1-212) 622-0810

of underperforming units, and an improved operational approach. For Media alexey.philippov@jpmorgan.com

specifically, the company highlighted delivering client needs on value, certainty, Kiscada A Hastings

(1-212) 622-0226

and measurable outcomes, while marketer spending was framed as resilient in the kiscada.hastings@jpmchase.com

context of the volatile macro. On Advertising, we believe the challenges reflect less

Douglas Wardlaw

any industry factors, and are more related to the IPG integration which included the (1-212) 622 4885

closure of several large creative networks and smaller agencies. douglas.wardlaw@jpmchase.com

J.P. Morgan Securities LLC