Revenue growth remains in a contractionary phase, with a 5.1% year-over-year decline in 2025Q3 and operating margins exhibiting high sensitivity to cost fluctuations, dropping from 19.9% in 2024Q4 to 8.8% in 2025Q3.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 | Dec'95 |
|---|
| Sales/Revenue | 10.21B | 10.69B | 10.89B | 10.93B | 10.24B | 9.06B | 10.22B | 9.71B | 7.88B | 7.85B | 7.61B | 7.54B | 7.12B | 6.96B | 7.01B | 6.53B | 6.03B | 6.96B | 6.55B | 6.19B | 6.27B | 6.39B | 5.86B | 6.2B | 6.72B | 5.63B | 4.43B | 3.84B | 3.13B | 2.54B | 2.18B |
| Revenue Growth % | -5.96% | -1.81% | -0.35% | 6.71% | 13.02% | -11.35% | 5.22% | 23.24% | 0.46% | 3.06% | 1.02% | 5.82% | 2.39% | -0.83% | 7.39% | 8.37% | -13.43% | 6.23% | 5.87% | -1.33% | -1.76% | 8.93% | -5.48% | -7.73% | 19.51% | 27.07% | 15.17% | 22.99% | 23.18% | 16.42% | 9.85% |
| Cost of Goods Sold | 8.35B | 8.87B | 9.08B | 9.08B | 8.39B | 7.71B | 8.73B | 8.34B | 7.83B | 7.82B | 4.85B | 4.82B | 4.55B | 4.39B | 4.4B | 4.12B | 3.96B | 4.34B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -187.06M | -154.23M | -130.36M | -141.7M | 1.24B | 1.06B |
| COGS % of Revenue | - | 82.98% | 83.34% | 83.12% | 81.91% | 85.08% | 85.4% | 85.81% | 99.39% | 99.67% | 63.76% | 63.96% | 63.82% | 63.14% | 62.76% | 63.03% | 65.72% | 62.37% | - | - | - | - | - | - | - | -3.33% | -3.48% | -3.39% | -4.53% | 48.89% | 48.58% |
| Gross Profit | 1.86B | 1.82B | 1.81B | 1.84B | 1.85B | 1.35B | 1.49B | 1.38B | 1.21B | 1.24B | 2.76B | 2.72B | 2.58B | 2.56B | 2.61B | 2.39B | 2.07B | 2.62B | 6.55B | 6.19B | 6.27B | 6.39B | 6.16B | 6.06B | 6.35B | 5.81B | 5.13B | 4.35B | 3.49B | 1.3B | 1.12B |
| Gross Margin % | 18.23% | 17.02% | 16.66% | 16.88% | 18.09% | 14.92% | 14.6% | 14.19% | 15.4% | 15.74% | 36.24% | 36.04% | 36.18% | 36.86% | 37.24% | 36.59% | 34.28% | 37.63% | 100% | 100% | 100% | 100% | 105.09% | 97.67% | 94.49% | 103.33% | 115.92% | 113.13% | 111.8% | 51.11% | 51.42% |
| Gross Profit Growth % | - | 0.3% | -1.65% | -0.44% | 37.09% | -9.42% | 8.27% | 13.56% | -1.75% | -55.23% | 1.56% | 5.43% | 0.49% | -1.85% | 9.3% | 15.67% | -21.13% | -60.02% | 5.87% | -1.33% | -1.76% | 3.66% | 1.69% | -4.62% | 9.29% | 13.27% | 18% | 24.45% | 169.45% | 15.7% | 9.97% |
| Operating Expenses | 873.2M | 616.5M | 331.6M | 463.5M | 416.7M | 763.2M | 406.2M | 369.4M | 275.2M | 298.8M | 1.88B | 1.93B | 1.98B | 1.89B | 1.93B | 1.84B | 1.73B | 2.03B | 6.21B | 6.08B | 6.38B | 6.48B | 6.19B | 5.78B | 6.62B | 6.55B | 4.47B | 3.78B | 3.13B | 898.9M | 828.8M |
| OpEx % of Revenue | - | 5.77% | 3.05% | 4.24% | 4.07% | 8.42% | 3.97% | 3.8% | 3.49% | 3.81% | 24.75% | 25.58% | 27.78% | 27.11% | 27.45% | 28.19% | 28.62% | 29.16% | 94.75% | 98.29% | 101.66% | 101.48% | 105.62% | 93.22% | 98.45% | 116.47% | 100.95% | 98.23% | 100.14% | 35.42% | 38.02% |
| Selling, General & Admin | 181.2M | 130.5M | 67.2M | 87.1M | 122.3M | 58.8M | 93.8M | 166.5M | 1.84B | 1.87B | 1.88B | 1.93B | 1.92B | 1.89B | 6.33B | 5.98B | 5.68B | 6.36B | 6.18B | 6.02B | 6.29B | 5.98B | 5.34B | 5.65B | 5.84B | 4.68B | 3.83B | 3.35B | 950.3M | 795.4M | 737.6M |
| SG&A % of Revenue | - | 1.22% | 0.62% | 0.8% | 1.19% | 0.65% | 0.92% | 1.71% | 23.35% | 23.84% | 24.75% | 25.58% | 26.93% | 27.11% | 90.19% | 91.54% | 94.26% | 91.29% | 94.35% | 97.29% | 100.21% | 93.68% | 91.03% | 91.01% | 86.94% | 83.18% | 86.42% | 87.07% | 30.4% | 31.35% | 33.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 486M | 264.4M | 376.4M | 294.4M | 704.4M | 312.4M | 202.9M | 156.7M | 160.2M | 0 | 0 | 60.6M | -1.2M | 1M | 0 | 4.6M | 17.1M | 25.9M | 61.7M | 91.3M | 498M | 466.9M | 137.9M | 1.1B | 509.16M | 253.55M | 191.75M | 141.7M | 103.5M | 91.2M |
| Operating Income | 988.6M | 1.2B | 1.48B | 1.38B | 1.44B | 588.4M | 1.09B | 1.01B | 938.4M | 936.4M | 874.8M | 788.4M | 598.3M | 678.3M | 687.2M | 548.7M | 341.3M | 589.7M | 344.3M | 106M | -104.2M | -94.3M | -31.5M | 275.8M | -266.5M | 817.6M | 662.68M | 572.6M | 364.2M | 398M | 292.1M |
| Operating Margin % | 9.68% | 11.25% | 13.62% | 12.64% | 14.02% | 6.49% | 10.62% | 10.38% | 11.91% | 11.93% | 11.49% | 10.46% | 8.4% | 9.75% | 9.8% | 8.4% | 5.66% | 8.47% | 5.25% | 1.71% | -1.66% | -1.48% | -0.54% | 4.45% | -3.96% | 14.53% | 14.97% | 14.89% | 11.65% | 15.68% | 13.4% |
| Operating Income Growth % | - | -18.85% | 7.34% | -3.83% | 144.09% | -45.82% | 7.65% | 7.5% | 0.21% | 7.04% | 10.96% | 31.77% | -11.79% | -1.3% | 25.24% | 60.77% | -42.12% | 71.28% | 224.81% | 201.73% | -10.5% | -199.37% | -111.42% | 203.49% | -132.6% | 23.38% | 15.73% | 57.22% | -8.49% | 36.25% | 24.99% |
| EBITDA | 1.24B | 1.46B | 1.75B | 1.66B | 1.72B | 879M | 1.36B | 1.21B | 1.1B | 1.1B | 1.03B | 951.4M | 755.7M | 826M | 838.1M | 697.1M | 511.2M | 763M | 632M | 366.5M | 116M | 145.1M | 246.4M | 576.3M | 184.8M | 1.12B | 878.58M | 751.7M | 495M | 501.5M | 383.3M |
| EBITDA Margin % | 12.11% | 13.68% | 16.04% | 15.15% | 16.8% | 9.7% | 13.35% | 12.47% | 13.9% | 13.98% | 13.55% | 12.62% | 10.61% | 11.87% | 11.95% | 10.67% | 8.48% | 10.96% | 9.64% | 5.92% | 1.85% | 2.27% | 4.2% | 9.29% | 2.75% | 19.86% | 19.84% | 19.55% | 15.84% | 19.76% | 17.59% |
| EBITDA Growth % | -17.75% | -16.3% | 5.54% | -3.77% | 95.68% | -35.58% | 12.61% | 10.61% | -0.1% | 6.28% | 8.45% | 25.9% | -8.51% | -1.44% | 20.23% | 36.37% | -33% | 20.73% | 72.44% | 215.95% | -20.06% | -41.11% | -57.24% | 211.85% | -83.46% | 27.15% | 16.88% | 51.86% | -1.3% | 30.84% | 23.93% |
| D&A (Non-Cash Add-back) | 247.6M | 258.9M | 264.3M | 274M | 283.8M | 290.6M | 278.5M | 202.9M | 157.1M | 160.2M | 157M | 163M | 157.4M | 147.7M | 150.9M | 148.4M | 169.9M | 173.3M | 287.7M | 260.5M | 220.2M | 239.4M | 277.9M | 300.5M | 451.3M | 299.54M | 215.9M | 179.1M | 130.8M | 103.5M | 91.2M |
| EBIT | 999.4M | 1.28B | 1.63B | 1.44B | 1.39B | 553.5M | 1.08B | 961M | 931.6M | 916.2M | 848M | 805.6M | 590.7M | 808.3M | 875.2M | 590.3M | 388M | 683.4M | 386.9M | 132.4M | -111.5M | -32.1M | 141.4M | 283.7M | 368M | 995.3M | 662.68M | 572.6M | 364.2M | 398M | 292.1M |
| Net Interest Income | -86.5M | -78.2M | -84.8M | -111.3M | -143.4M | -162.7M | -164.8M | -101.2M | -71.4M | -70.5M | -63M | -57.5M | -98M | -104M | -99M | -111M | -120.6M | -121.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 117.3M | 151.7M | 140.8M | 56.6M | 27.2M | 29.5M | 34.5M | 21.8M | 19.4M | 20.1M | 22.8M | 27.4M | 24.7M | 29.5M | 37.8M | 28.7M | 35M | 90.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 203.8M | 229.9M | 225.6M | 167.9M | 170.6M | 192.2M | 199.3M | 123M | 90.8M | 90.6M | 85.8M | 84.9M | 122.7M | 133.5M | 136.8M | 139.7M | 155.6M | 211.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -192.1M | -154.1M | -74.6M | -106.7M | -211.6M | -227.1M | -207.7M | -170.8M | -97.6M | -110.8M | -112.6M | -67.7M | -130.3M | -3.5M | 51.2M | -98.1M | -108.9M | -118.2M | -108.6M | -111M | -82.4M | -172.7M | -341.3M | -160.1M | -319.9M | -26.2M | -87.42M | 12.95M | 22.4M | -42.8M | -39.6M |
| Pretax Income | 796.4M | 1.05B | 1.41B | 1.27B | 1.22B | 362.2M | 878.3M | 838M | 840.8M | 825.6M | 762.2M | 720.7M | 468M | 674.8M | 738.4M | 450.6M | 232.4M | 471.5M | 235.7M | -5M | -186.6M | -267M | -372.8M | 115.7M | -586.4M | 791.4M | 575.26M | 585.54M | 386.6M | 355.2M | 252.5M |
| Pretax Margin % | 7.8% | 9.81% | 12.93% | 11.66% | 11.96% | 4% | 8.59% | 8.63% | 10.67% | 10.52% | 10.01% | 9.56% | 6.57% | 9.7% | 10.53% | 6.9% | 3.86% | 6.77% | 3.6% | -0.08% | -2.97% | -4.18% | -6.36% | 1.86% | -8.72% | 14.07% | 12.99% | 15.23% | 12.37% | 14% | 11.58% |
| Income Tax | 229.8M | 333.9M | 291.2M | 318.4M | 251.8M | 8M | 204.8M | 199.2M | 281.9M | 198M | 282.8M | 216.5M | 181.2M | 213.3M | 190.2M | -171.3M | 90.1M | 156.6M | 58.9M | 18.7M | 81.9M | 262.2M | 254M | 140.3M | -55.3M | 273.03M | 236.3M | 232M | 184.8M | 150M | 122.7M |
| Effective Tax Rate % | 28.85% | 31.83% | 20.68% | 24.98% | 20.56% | 2.21% | 23.32% | 23.77% | 33.53% | 23.98% | 37.1% | 30.04% | 38.72% | 31.61% | 25.76% | -38.02% | 38.77% | 33.21% | 24.99% | -374% | -43.89% | -98.2% | -68.13% | 121.26% | 9.43% | 34.5% | 41.08% | 39.62% | 47.8% | 42.23% | 48.59% |
| Net Income | 551.6M | 689.5M | 1.1B | 938M | 952.8M | 351.1M | 656M | 618.9M | 579M | 608.5M | 454.6M | 477.1M | 267.9M | 446.7M | 532.3M | 261.1M | 121.3M | 295M | 167.6M | -31.7M | -262.9M | -538.4M | -451.7M | 99.5M | -534.5M | 358.66M | 321.9M | 309.9M | 239.1M | 205.2M | 129.8M |
| Net Margin % | 5.4% | 6.45% | 10.09% | 8.58% | 9.3% | 3.87% | 6.42% | 6.37% | 7.35% | 7.75% | 5.97% | 6.33% | 3.76% | 6.42% | 7.59% | 4% | 2.01% | 4.24% | 2.56% | -0.51% | -4.19% | -8.43% | -7.7% | 1.6% | -7.95% | 6.38% | 7.27% | 8.06% | 7.65% | 8.09% | 5.95% |
| Net Income Growth % | -31.75% | -37.23% | 17.1% | -1.55% | 171.38% | -46.48% | 5.99% | 6.89% | -4.85% | 33.85% | -4.72% | 78.09% | -40.03% | -16.08% | 103.87% | 115.25% | -58.88% | 76.01% | 628.71% | 87.94% | 51.17% | -19.19% | -553.97% | 118.62% | -249.03% | 11.42% | 3.87% | 29.61% | 16.52% | 58.09% | 38.97% |
| Net Income (Continuing) | 566.6M | 715.7M | 1.12B | 956.1M | 972.8M | 354.2M | 673.9M | 637.7M | 570.4M | 629M | 480.5M | 505.4M | 288.9M | 464.6M | 551.5M | 281.2M | 143.4M | 318M | 167.6M | -36.7M | -271.9M | -544.9M | -640.1M | -14.8M | -550.1M | 392.8M | 331.29M | 339.91M | 200.4M | 205.2M | 129.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9.2M | 18M | 12.4M | -35.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 55.2M | 112.7M | 103.5M | 96.4M | 78.8M | 142M | 214.4M | 207.5M | 286.9M | 292.4M | 288.2M | 292.3M | 284.7M | 263.2M | 279M | 329.1M | 38.6M | 0 | 0 | 46.5M | 49.3M | 55.2M | 70M | 70.4M | 89.3M | 85.81M | 78.6M | 55.9M | 31.9M | 23.3M | 15.2M |
| EPS (Diluted) | 1.50 | 1.83 | 2.85 | 2.37 | 2.39 | 0.89 | 1.68 | 1.59 | 1.40 | 1.48 | 1.09 | 1.12 | 0.61 | 0.94 | 0.99 | 0.47 | 0.19 | 0.52 | 0.26 | -0.07 | -0.62 | -1.30 | -1.17 | 0.26 | -1.45 | 0.89 | 1.11 | 1.11 | 0.95 | 0.85 | 0.55 |
| EPS Growth % | -31.24% | -35.79% | 20.25% | -0.84% | 168.54% | -47.02% | 5.66% | 13.57% | -5.41% | 35.78% | -2.68% | 83.61% | -35.11% | -5.05% | 110.64% | 147.37% | -63.46% | 100% | 451.35% | 88.06% | 52.31% | -11.11% | -550% | 117.93% | -262.92% | -19.82% | 0% | 16.84% | 11.76% | 54.55% | 34.15% |
| EPS (Basic) | - | 1.84 | 2.86 | 2.40 | 2.42 | 0.90 | 1.70 | 1.61 | 1.42 | 1.52 | 1.11 | 1.14 | 0.62 | 1.01 | 1.12 | 0.57 | 0.20 | 0.57 | 0.29 | -0.07 | -0.62 | -1.30 | -1.17 | 0.26 | -1.45 | 0.92 | 1.15 | 1.15 | 0.99 | 0.88 | 0.55 |
| Diluted Shares Outstanding | 368M | 377.7M | 385.9M | 395.1M | 398.4M | 393.2M | 391.2M | 389M | 397.3M | 408M | 415.7M | 425.4M | 429.6M | 481.4M | 540.6M | 542.1M | 508.1M | 518.3M | 503.1M | 428.1M | 424.8M | 415.3M | 385.5M | 381.08M | 369M | 370.5M | 298.46M | 306.22M | 210.95M | 241.41M | 234.58M |
| Basic Shares Outstanding | 365M | 375.2M | 384.1M | 391.5M | 393M | 389.4M | 386.1M | 383.3M | 389.6M | 397.9M | 408.1M | 419.2M | 421.1M | 432.5M | 465.5M | 473.6M | 468.2M | 461.5M | 457.7M | 428.1M | 424.8M | 415.3M | 385.5M | 376.1M | 369M | 359.6M | 288.08M | 295.57M | 202.42M | 233.18M | 234.58M |
| Dividend Payout Ratio | - | 72.01% | 43.62% | 48.75% | 44.89% | 113.39% | 55.35% | 52.04% | 48.41% | 39.18% | 43% | 33.33% | 47.03% | 23.15% | 20.87% | - | 18.3% | 4.95% | - | - | - | - | - | 129.85% | - | 34.44% | 32.64% | 25.72% | 25.6% | 25.24% | 35.52% |
Cyclical Client Budget Contraction
As reported in recent financial filings, IPG has experienced a sustained period of negative top-line growth, with revenue declining by 5.1% YoY in 2025Q3, marking a multi-quarter trend of contraction that suggests significant headwinds within the firm's core advertising and media services client base.
The consistent negative revenue growth across the last several quarters appears to reflect a broader pullback in discretionary marketing spend, particularly among technology and telecommunications clients. This trajectory warrants further investigation into whether the firm is losing market share to digital-first competitors or if the decline is primarily a function of its specific client mix.
Based on the provided income statement data, IPG's operating margins have exhibited significant instability, swinging from a 19.9% peak in 2024Q4 to a negative 1.8% in 2025Q1, indicating that the firm's cost structure lacks the flexibility to absorb sudden revenue fluctuations.
The sharp margin compression observed in early 2025 suggests that the company's high fixed-cost base, primarily driven by personnel expenses, creates significant operating leverage risk during downturns. Investors should monitor whether management can successfully implement cost-rationalization measures to stabilize profitability in the face of ongoing revenue headwinds.
According to the company's historical income statements, SG&A expenses have remained a critical variable in determining quarterly profitability, with fluctuations in these costs directly impacting the firm's ability to maintain positive operating income during periods of top-line weakness.
The reliance on human capital as the primary cost driver suggests that IPG remains highly sensitive to wage inflation and the competitive market for specialized data science talent. The lack of R&D spending in the provided data implies that the firm may be under-investing in the proprietary technology necessary to differentiate its Acxiom-led data utility model.
While management emphasizes the integration of Acxiom, the recent financial performance suggests that this data-centric model has not yet insulated the firm from cyclical downturns, as evidenced by the 5.1% revenue decline observed in the most recent quarter of 2025.
Short-sellers may focus on the potential for goodwill impairment charges related to the Acxiom acquisition if the data segment fails to deliver expected growth. Furthermore, the firm's heavy concentration in the U.S. market leaves it uniquely vulnerable to domestic economic volatility compared to more geographically diversified global peers.
Quick answers to the most common questions about buying IPG stock.
For fiscal year 2024, The Interpublic Group of Companies, Inc. (IPG) reported total revenue of $10.69B. This represents a 390.5% increase compared to $2.18B in 1995.
The Interpublic Group of Companies, Inc. (IPG) is profitable, generating $689.5M in net income for the fiscal year ending 2024 with a net profit margin of 6.4%.
The Interpublic Group of Companies, Inc. (IPG) reported an operating income of $1.20B, resulting in an operating profit margin of 11.3%. This margin reflects the operational efficiency of the business before interest and taxes.
The Interpublic Group of Companies, Inc. (IPG) generated $1.82B in gross profit for the year, representing a gross profit margin of 17.0%. This demonstrates the company's core pricing power and production efficiency.