Oct 22, 2026 earnings call — Interpublic acquisition integration and synergies
Company on track to deliver $900 million in cost reduction synergies in 2026.
Revenue $6.4B (est $6.2B) · EPS $2.73 (est $2.67)
Key quotes
"We are realizing the financial benefits of the combination and are on track to deliver $900 million in cost reduction synergies in 2026."
"We won several new assignments, including Novo Nordisk, U.S. Bank, L'Oréal, and CVS Health."
"Additionally, we announced a 5-year strategic collaboration agreement with Amazon Web Services that will help clients modernize their marketing infrastructure and deploy AI at scale."
Analyst Q&A 9
sustaining media growth and margins
Q (David Karnovsky · JPMorgan): Can media organic growth be sustained after the IPG deal? Also, what should we expect for full-year core margin and Q4 given synergies?
A: They said connected capabilities including media remain a strong offering and they expect that to continue into 2027 but are not forecasting next year's organic revenue yet. They said margins grew about 200 basis points in Q3 and 210 basis points through 9 months, expect something similar in Q4 and for the full year, but they lack full visibility into Q4 project spend.
"As far as margins go, David, I think we grew our margins about 200 basis points in Q3." — Phil Angelastro (CFO)
Coke account and synergies progress
Q (Adam Berlin · Goldman Sachs): Can you comment on the Coke North America win and whether it conflicts with Pepsi? Also, how much of the $900 million synergies is already in the 9-month numbers?
A: They deferred comment on Coke to the client and said any business won from Coke would be incremental to existing revenue and relationships. They said they are on track to achieve the $900 million cost reduction synergies and expect to deliver 75%-85% of that to the bottom line, and they are on pace through the first 9 months.
"We also, as we had indicated, expect to deliver 75%-85% of that to the bottom line as we go through the year, and we're certainly on pace with where we expected to be when we started out the year." — Phil Angelastro (CFO)
revenue from assets held for sale
Q (Jason Bazinet · Citi): What is the updated revenue you expect in Q4 from businesses held for sale? Prior estimates were about $300 million then $225 million.
A: Phil said Q3 revenue from businesses not yet disposed came in at about $412 million, higher than their estimate. He updated the Q4 estimate to about $325 million but said timing is hard and some deals could close in early 2027.
"At this point, we expect about $325 million of revenue from the deals that haven't been completed in Q4." — Phil Angelastro (CFO)
what drives growth and margins
Q (Steven Cahall · Wells Fargo): Which businesses are driving the acceleration and growth, especially media? And ex-synergies, why does margin on revenue growth look low?
A: They said multiple factors drive EBITA improvement: revenue growth, the synergies they are tracking to achieve, and investments in technology platforms including Omni and agentic AI. They reported 9 months of 5.8% organic growth, $553 million of EBITA dollar growth, 210 basis points of margin improvement and 21% EPS growth; media grew consistently and benefited from the World Cup and midterm elections in Q3.
"we're certainly satisfied with 9 months of growth at 5.8% organic." — Phil Angelastro (CFO)
pitch activity and AWS partnership
Q (Sean Diffley · Morgan Stanley): How aggressive are current pitches and pricing? Are competitors offering concessions? Also describe the AWS deal and whether it will be incremental.
A: They said pitch activity is about the same as typical, healthy, and they are winning more than their fair share, with more opportunities for net gains. For AWS, they said the initiative is meant to drive joint growth by leveraging Omnicom's technology consulting and implementation skills to deliver cloud-based AI solutions and will be a dedicated unit to focus on that growth.
"With respect to the AWS question, Sean, it absolutely is meant to drive joint growth for our partnership." — Paolo Yuvienco
dispositions and 2026 EBITA math
Q (Julien Roch · Barclays): Will the $73 million gap roll into 2027? Will dispositions end so reporting is clean in 2027? And is 2026 EBITA best thought of as 2025 plus 75%-80% of synergies (to about $4.2 billion)?
A: They said the goal is to finish dispositions by the end of the year or very early in January and to stop splitting core and dispositions in reporting. They said the $3.6 billion annualized revenue is at the higher end of the prior 35-36 estimate and reflects timing and a couple added dispositions, and they agreed the simple math of adding 75%-80% of synergies to 2025 EBITA is a valid way to think about 2026 EBITA, though overall results also include margin improvement of about 200-210 basis points and investments.
"we expect to do that by the end of the year or very early in January." — Phil Angelastro (CFO)
what acquisitions were made
Q (Michael Nathanson · MoffettNathanson): You spent $303 million on acquisitions year-to-date. What types of deals were those and why is revenue contribution small?
A: They said the cash spend includes three things: a very small amount of traditional acquisitions, some earn-out payments, and mainly purchases of additional minority interests to allow integration. The biggest single spend was topping up ownership where Interpublic owned 51% and they repurchased the other 49%, so revenue didn't change materially because the businesses were already consolidated.
"Most of the spend in the acquisition category through 9 months relates to acquisitions of additional minority interests." — Phil Angelastro (CFO)
Omnicom's role with AI and platforms
Q (Tim Nollen · SSR): How does a big holding company like Omnicom fit as agentic AI and end-to-end platforms grow? How is your role changing?
A: They said Omnicom is central because they are building a platform where Omnicom staff and client staff can work together, and they orchestrate complexity on clients' behalf. They said the Omni marketing intelligence platform performs that orchestration and agentic AI helps implement tasks efficiently to simplify the marketing life cycle, and their client base and cash flow let them invest.
"Yeah, so I think ultimately what we do is we orchestrate that complexity on behalf of our clients." — Paolo Yuvienco
creative leadership changes and Q4 numbers
Q (Adrien de Saint Hilaire · BofA): What recent creative agency leadership changes happened and will they cause disruption? Also, why does slide 33 show a different Q4 base number than the old Q4 2024 base?
A: They said there were leadership changes including Troy Ruhanen retiring and Andrew Robertson stepping in, the handover was well executed and they saw little disruption and have succession plans. They said Q4 combined numbers were tricky because the IPG transaction closed on December 1, 2025, so the 2025 numbers included one month of IPG post-closing (December) and IPG's October and November results, and they put these 2025 numbers in the deck to be more representative.
"It was a very well-executed handover, for an unexpected job opening." — John Wren (CEO·CHAIR)