Omnicom, now integrating takeover target IPG, expects revenue growth of 4% this year and reports “solid progress” in cutting $1.5 billion in costs.
But the actual end-of-year revenue pile, if the 4% target is met, could be less than before the takeover.
The world’s biggest advertising group unveiled its outlook, missing from recently announced December quarter results, at an investor day presentation to market analysts.
The takeover of IPG, which was finalised in November last year, created the world’s biggest global advertising group but thousands of jobs have been lost in the process.
The combined Omnicom and Interpublic revenue was $US26.3 billion for the twelve months ended September 2025, the last period that each company reported standalone results.
The company plans to sell assets, so far unnamed, totalling $US3.2 billion.
So at a 4% growth rate, and assuming the assets are sold in time, the company ends the year at a bit more than $US24 billion.
At the same time the company plans to pursue acquisitions focused on the “fastest-growing” parts of the business.
“There's a number of tuck-in acquisitions that we're going to want to do,” CEO John Wren told analysts.
“After people get a little bit of rest, we'll get on the bicycle again and start up. Hopefully nothing to the size of Interpublic.”
The combined company has 58% of revenue from media and media-related activities, 18% from advertising and the rest, including PR, experimental and healthcare, make up the rest.
Omnicom expects to achieve $US1.5 billion in cost cuts by mid-2028, including $US900 million in 2026 and $US1.3 billion in 2027.
The cuts focus includes offshoring, nearshoring, automation, real estate optimisation and “other measures”.
“We're making solid progress in reducing these costs, and we'll continue to update you on our progress throughout our 2026 quarterly reporting cycle,” said CFO Phil Angelastro.
“We're committed to continuing to invest in the business, as we always have, to drive sustainable long-term growth.
“This includes investing in new products and services, our Omni platform, generative AI, and acquisitions in the fastest-growing parts of our business that will drive greater growth in the future.”
Beyond 2026, the CFO said Omnicom believes growth will further benefit from the company’s new positioning.
“Through many economic cycles and technological disruptions, Omnicom has delivered low to mid single digit revenue growth,” he told analysts.
“After completing the integration in 2026, and with the strength of the new Omnicom, we're well-positioned for strong growth in the future.”
Answering questions from analysts, the CFO said the company expects the media business to grow faster than the Omnicom average rate.
“Our average rate for the last three years was probably a 4% growth rate,” he said.
“If you look at those (media) businesses overall, we expect them to grow at a rate higher than that into the future.”
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