Omnicom’s first post-IPG quarter lifts revenue; group doubles synergy goal to $1.5 billion

New Delhi: Omnicom Group has reported its first quarterly results since completing the Interpublic Group (IPG) acquisition, with fourth-quarter 2025 revenue at $5.5 billion and full-year revenue at $17.3 billion, even as the company posted a net loss of $0.9 billion for the quarter.

The company said it is doubling its total cost synergy target from the merger to $1.5 billion over the next 30 months, including $900 million in 2026. 

Omnicom also announced a $5.0 billion share buyback, including a $2.5 billion accelerated share repurchase.

In the quarter ended December 31, 2025, Omnicom’s revenue of $5.53 billion exceeded analysts’ average estimate of $5.04 billion.

The company is attributing performance to strength in its media and advertising unit and new client momentum. 

Omnicom also cited new business and contract extensions with brands including American Express, Bayer, BBVA, BNY, Clarins, Mercedes and NatWest.

Omnicom recorded $1.12 billion in severance and repositioning costs, including expenses linked to severance, real estate and contract exits. The Omnicom earnings release also flags acquisition-related costs, repositioning costs and losses on dispositions as key drivers behind the GAAP loss line, while reporting non-GAAP adjusted profitability metrics.

Alongside cost actions, Omnicom is planning portfolio and footprint changes. Omnicom has identified “non-strategic and underperforming” businesses for sale or exit, with proceeds of about $2.5 billion, and is preparing to exit some smaller markets and non-strategic businesses as it tightens focus after the IPG integration.

On the operating model, Omnicom is positioning the combined group as an AI-led, data-centric platform business. 

AdExchanger also reported Omnicom CTO Paolo Yuvienco described a shift in the creative process, with teams using AI tools to generate “20 or even 50” ideas and run synthetic testing before spending on media.

The piece said a large part of the expanded savings plan will come from restructuring, including streamlining regional and brand structures, outsourcing and offshoring, and removing duplicative roles.

Omnicom’s integration actions include consolidations in public relations, including merging Golin and Ketchum and folding Novelli into FleishmanHillard, as the holding company pushes to reduce overlap across the combined network.

Omnicom’s management has said the next phase will be judged on whether acquisition-led scale converts into integrated delivery and measurable outcomes.