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- **Q3 Growth**: 2.6% organic revenue growth, 10.3% EPS increase, and 16.1% EBITDA margin reflect strong operational execution despite macro challenges.
- **IPG Acquisition**: Closing expected in late November, with integration plans finalized. Pro forma financials and synergies to be disclosed post-closing.
- **AI-Driven Innovation**: Omni Plus and Agentic AI agents position Omnicom as a leader in generative AI applications, winning new business across industries.
- **Key Risks**: Precision Marketing decline in Europe, Public Relations volatility due to elections, and uncertain Q4 project work outcomes.
- **Shareholder Returns**: $312 million in share buybacks year-to-date, with $600 million target for 2025.

**【CEO Summary Section】**
- Organic revenue growth of 2.6% for Q3 2025, in line with annual guidance of 3%. Non-GAAP adjusted EBITDA margin improved to 16.1%, up 10 basis points year-over-year.
- Proposed acquisition of Interpublic Group (IPG) expected to close in late November 2025, with EU antitrust clearance filed on October 20. Integration teams are finalizing plans for a seamless transition.
- Launch of Omni Plus, a next-generation marketing operating system, scheduled for CES 2026. The platform leverages generative AI and Acxiom's Real ID for unified data insights, with Agentic AI agents driving faster client outcomes.
- New business wins include American Express, Porsche, Intersnack, White Castle, OpenAI, Amgen, Bayer, Anthropic, and Paramount, reflecting client confidence in the combined entity.
- Media and advertising revenue grew 9% organically, driven by strong performance across geographies, while Creative faced macroeconomic challenges.

**【CFO Financial Commentary】**
- Q3 2025 non-GAAP adjusted EPS of $2.24, up 10.3% year-over-year. Adjusted EBITDA of $551.6 million, with margin expansion to 16.1%.
- Media and advertising revenue growth of 9% offset declines in Public Relations (-8%) and Branded & Retail Commerce (-17%). U.S. revenue grew 4.6%, while Europe saw a 3.1% decline.
- Third-party service costs increased with revenue growth, particularly in media and execution & support. Salary and related costs declined 3.7% due to efficiency initiatives.
- Free cash flow for the first 9 months of 2025 was $1.4 billion, with $312 million in share repurchases. Full-year share buyback target remains $600 million.
- Interest expense is expected to rise $7 million in Q4 due to lower interest rates on cash investments.

**【Q&A Highlights】**
- **Acquisition Timeline**: Pro forma financials and updated guidance will be shared post-closing, likely at CES 2026. Synergies exceeding initial targets are expected.
- **Precision Marketing Challenges**: Q3 decline in Europe due to government consulting work cuts; U.S. growth offset European weakness. Recovery depends on new business pipeline execution.
- **Client Sentiment**: Positive response to combined offering, with clients expressing interest in integrated capabilities post-merger.
- **AI Impact**: Generative AI embedded in workflows across creative, media, and healthcare, enabling faster, data-driven solutions (e.g., automotive campaigns, drug launches).
- **Tariffs and Budgets**: Clients adapting to tariffs through supply chain innovation; marketing budgets stable, with Q4 project work expected to drive growth.
- **Reporting Frequency**: CFO open to evaluating biannual reporting if SEC rules change, but quarterly reporting provides operational discipline.

Omnicom Group Inc. (OMC) Q3 2025 Earnings Call Transcript

Revenue

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Operating Expenses

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OMC

OMC fundamentals

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