Publicis Groupe Q2 slightly ahead; Raises FY guidance to the upper end of the prior range

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Publicis Groupe Q2 slightly ahead; Raises FY guidance to the upper end of the prior range

sell and expand scope with existing clients, and to win new business, … a Coca-Cola cloud on the horizon

reflecting differentiated capabilities and a data advantage that supports stronger

returns on marketing investment. This advantage should become even more Conversations from Cannes: AI to drive

important in an AI-driven world, particularly as data increasingly informs creative marketing boom; creative renaissance &

personalisation. We expect AI to drive account consolidation as it increases the better business models

friction of media / creative / marketing services separation, and market share gains

for Publicis’s connected ecosystem. We expect the acquisition of LiveRamp to Improved NNB momentum for Euro

further strengthen its flywheel - see this note. agencies offset by macro risk; Do two

swallows make for a WPP summer?

Publicis trades on 12.4x 2026E NOPAT and a PE of 11x. We would argue that its

increasingly sticky (given increased recurring advertising, deeper connections and

data integrations), organic growth of c5%, high single-digit EPS growth, strong PUB: Strong start to the year; Guidance

balance sheet and c5% dividend yield warrants a 2028E EV / NOPAT of c14x, maintained

which would imply a 2026E PE of c16.5x and c50% potential upside. We maintain

an OW rating with a PT of €133.

• Noteworthy Areas: PUB reported Q2 organic growth of 4.8% (Q1 4.5%). US

grew 5.5% (Q1 4.7%), driven by HSD growth in Media and MSD growth in

Creativity. Technology (13% of total net revenue) was down MSD in Q2 due

to delayed client spend on large, capex-heavy transformation projects. Europe

grew by 5% (Q1 3.9%) and Asia Pacific by 2.6% (Q1 5.9%). Middle East and