Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing OMC more generously than it does today.
Analysis OverviewHoldUpdated May 1, 2026
Omnicom Group Inc. (OMC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
34
analysts
10 bullish · 4 bearish · 34 covering OMC
Strong Buy
0
Buy
10
Hold
20
Sell
4
Strong Sell
0
Consensus Target
$94
+21.8% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
7.2x
Forward P/E · Market cap $23.9B
OMC price targets
Three scenarios for where OMC stock could go
Current
~$77
Confidence
54 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Omnicom Group Inc.
OMC · NYSECommunication ServicesAdvertising AgenciesDecember year-end
Omnicom Group is a global advertising and marketing communications holding company that provides a comprehensive range of services through its network of agencies. It generates revenue primarily from agency fees and commissions across its advertising, customer relationship management, public relations, and healthcare marketing segments — with media planning and buying being a particularly significant revenue driver. The company's key advantage lies in its scale and integrated network of specialized agencies that can serve multinational clients across multiple disciplines and geographies.
Market Cap
$23.9B
Revenue TTM
$19.8B
Net Income TTM
$63M
Net Margin
0.3%
OMC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$2.05/$2.02
Revenue
$4.0B/$4.0B
Q4 2025
EPS
$2.24/$2.16
Revenue
$4.0B/$4.0B
Q1 2026
EPS
$2.59/$2.72
Revenue
$5.5B/$4.5B
Q2 2026
EPS
$1.90/$1.84
Revenue
$6.2B/$5.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.05/$2.02 | +1.5% | $4.0B/$4.0B | +1.0% |
| Q4 2025 | $2.24/$2.16 | +3.7% | $4.0B/$4.0B | +0.5% |
| Q1 2026 | $2.59/$2.72 | -4.8% | $5.5B/$4.5B | +22.8% |
| Q2 2026 | $1.90/$1.84 | +3.3% | $6.2B/$5.8B | +6.7% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$22.1B
+11.4% YoY
FY2
$23.5B
+6.5% YoY
EPS Outlook
FY1
$2.64
+759.3% YoY
FY2
$3.27
+23.9% YoY
Trailing FCF (TTM)$3.0B
FCF Margin: 15.1%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
OMC beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
OMC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $13.9B
Product Mix
Latest annual revenue by segment or product family
Advertising
72.2%
+18.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
36.4%
+10.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Advertising is the largest disclosed segment at 72.2% of FY 2025 revenue, up 18.3% YoY.
North America is the largest reported region at 36.4%, up 10.9% YoY.
OMC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Undervalued
Fair value est. $90 — implies +17.5% from today's price.
Upside to Fair Value
17.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
OMC
-284.9x
vs
S&P 500
25.2x
1229% discount
vs Communication Services Trailing P/E
OMC
-284.9x
vs
Communication Services
15.5x
1932% discount
vs OMC 5Y Avg P/E
Today
-284.9x
vs
5Y Average
12.0x
2469% discount
Forward PE
7.2x
S&P 500
19.1x
-62%
Communication Services
13.1x
-45%
5Y Avg
—
—
Trailing PE
-284.9x
S&P 500
25.2x
-1229%
Communication Services
15.5x
-1932%
5Y Avg
12.0x
-2469%
PEG Ratio
—
S&P 500
1.75x
—
Communication Services
0.66x
—
5Y Avg
—
—
EV/EBITDA
10.4x
S&P 500
15.3x
-32%
Communication Services
8.7x
+19%
5Y Avg
7.8x
+33%
Price/FCF
8.6x
S&P 500
21.3x
-60%
Communication Services
11.6x
-26%
5Y Avg
12.4x
-31%
Price/Sales
1.4x
S&P 500
3.1x
-56%
Communication Services
1.0x
+32%
5Y Avg
1.1x
+25%
Dividend Yield
3.49%
S&P 500
1.88%
+86%
Communication Services
3.38%
+3%
5Y Avg
3.40%
+3%
| Metric | OMC | S&P 500 | Communication Services | 5Y Avg OMC |
|---|---|---|---|---|
| Forward PE | 7.2x | 19.1x-62% | 13.1x-45% | — |
| Trailing PE | -284.9x | 25.2x-1229% | 15.5x-1932% | 12.0x-2469% |
| PEG Ratio | — | 1.75x | 0.66x | — |
| EV/EBITDA | 10.4x | 15.3x-32% | 8.7x+19% | 7.8x+33% |
| Price/FCF | 8.6x | 21.3x-60% | 11.6x-26% | 12.4x-31% |
| Price/Sales | 1.4x | 3.1x-56% | 1.0x+32% | 1.1x+25% |
| Dividend Yield | 3.49% | 1.88% | 3.38% | 3.40% |
OMC trades above S&P 500 benchmarks on 0 of 5 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolOMC Financial Health
Verdict
Strong
OMC generates $3.0B in free cash flow at a 15.1% margin — 14.5% ROIC signals a durable competitive advantage · returns 6.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$19.8B
Revenue Growth
TTM vs prior year
+25.9%
Gross Margin
Gross profit as a share of revenue
16.8%
Operating Margin
Operating income divided by revenue
13.7%
Net Margin
Net income divided by revenue
0.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$0.31
Free Cash Flow (TTM)
Cash generation after capex
$3.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
15.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
14.5%
ROA
Return on assets, trailing twelve months
0.2%
Cash & Equivalents
Liquid assets on the balance sheet
$6.9B
Net Debt
Total debt minus cash
$5.9B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.0× FCF
~2.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
0.7%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.5%
Dividend
3.5%
Buyback
3.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$708M
Dividend / Share
Annualized trailing dividend per share
$2.68
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
310M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageOMC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Economic Sensitivity
Omnicom's revenue is closely tied to its clients' economic cycles. During economic downturns, companies typically cut marketing budgets, directly impacting Omnicom's earnings and financial performance.
High Risk
Client Relationships
The potential loss of major clients or industry consolidation poses a significant risk to Omnicom's financial stability. As clients consolidate their marketing services with fewer agencies, Omnicom's revenue could be adversely affected.
High Risk
Digital Disruption
Rapid technological advancements in digital advertising and AI present a challenge for Omnicom. Failure to innovate and adapt could lead to a loss of relevance and revenue from historically lucrative digital marketing activities.
Medium
Integration Challenges
Following its acquisition of Interpublic Group, Omnicom faces risks in successfully integrating the two companies. Challenges include merging systems and compensation structures without disrupting client services.
Medium
Margin Pressure
Omnicom is experiencing margin pressure due to operational efficiency challenges and the need to manage costs effectively amidst economic uncertainties. This could impact profitability in the near term.
Medium
Regulatory Changes
Omnicom must navigate evolving tax laws and regulations, such as global anti-base erosion rules. Changes in these regulations could significantly impact the company's tax liabilities.
Lower
Organizational Complexity
With a large global workforce, Omnicom faces challenges in agility and decision-making speed compared to smaller competitors. This complexity may hinder its ability to respond swiftly to market changes.
Lower
Revenue Stagnation
Omnicom has struggled with revenue growth over the past decade, partly due to increased competition from tech businesses. This stagnation could limit future investment and expansion opportunities.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why OMC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Revenue Growth
Omnicom has demonstrated solid revenue growth, with a notable 9.4% increase in advertising and media revenues and a remarkable 35% growth in experiential marketing. Recent quarters have shown around 4% year-over-year increases in revenue.
Strategic Acquisitions and Wins
Successful acquisitions, such as Flywheel, and significant client wins, like the Amazon US account, position Omnicom for continued revenue growth. The company also completed a merger with The Interpublic Group of Companies, creating a large marketing conglomerate.
Synergies and Operational Efficiencies
The anticipated merger with Interpublic Group is expected to create substantial synergies, enhancing operational efficiencies and profitability. Management has doubled its total cost synergy target to $1.5 billion following the merger.
Attractive Valuation
Omnicom is trading at a compelling valuation, with a forward P/E ratio of approximately 7.42x, significantly below its 5-year average and industry peers. It is considered undervalued by some analysts, trading at under 8x earnings.
Shareholder Returns
The company has authorized a $5 billion share repurchase program, including $2.5 billion in accelerated buybacks, signaling management confidence and providing a dual catalyst for stock appreciation. Omnicom also offers an attractive dividend yield of around 3.9% to 4.2%.
Integrated Capabilities
Omnicom is increasingly positioning itself as a company built for 'intelligent growth' powered by its Omni platform and connected capabilities across various marketing services. This unified platform approach aims to make Omnicom more relevant in a market where clients prefer fewer partners.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
OMC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$76.92
52W Range Position
51%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$66.33
+16.0% from the low
52-Week High
$87.17
-11.8% from the high
1 Month
+1.26%
3 Month
+10.08%
YTD
-5.4%
1 Year
+1.2%
3Y CAGR
-5.8%
5Y CAGR
-1.8%
10Y CAGR
-0.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
OMC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
7.2x
vs 7.6x median
-5% below peer median
Revenue Growth
+11.4%
vs -1.6% median
+821% above peer median
Net Margin
0.3%
vs 2.0% median
-84% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
OMC OMC Omnicom Group Inc. | $23.9B | 7.2x | +11.4% | 0.3% | Hold | +21.8% |
IPG IPG The Interpublic Group of Companies, Inc. | $8.9B | 7.8x | -1.6% | 5.4% | Hold | +48.8% |
WPP WPP WPP plc | $4.0B | 7.4x | -8.7% | 2.0% | Hold | — |
HYF HYFM Hydrofarm Holdings Group, Inc. | $5M | — | -26.8% | -44.5% | — | — |
STG STGW Stagwell Inc. | $1.6B | 6.1x | +7.6% | 0.6% | Buy | +25.0% |
DG DG Dollar General Corporation | $25.6B | 16.0x | +4.3% | 3.5% | Buy | +24.6% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
OMC Dividend and Capital Return
OMC returns 6.5% total yield, led by a 3.49% dividend. Buybacks add another 3.0%.
Dividend UnknownFCF Well Covered
Total Shareholder Yield
6.5%
Dividend + buyback return per year
Buyback Yield
3.0%
Dividend Yield
3.49%
Payout Ratio
—
How OMC Splits Its Return
Div 3.49%
Buyback 3.0%
Dividend 3.49%Buybacks 3.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.68
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
1.2%
5Y Div CAGR
2.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$708M
Estimated Shares Retired
9M
Approx. Share Reduction
3.0%
Shares Outstanding
Current diluted share count from the screening snapshot
310M
At 3.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.80 | — | — | — |
| 2025 | $2.90 | +3.6% | 4.3% | 7.6% |
| 2024 | $2.80 | 0.0% | 2.2% | 5.4% |
| 2023 | $2.80 | 0.0% | 3.3% | 6.5% |
| 2022 | $2.80 | 0.0% | 3.6% | 7.1% |
FAQ
7 questionsOMC Investor Questions
Common questions answered from live analyst data and company financials.
01Is Omnicom Group Inc. (OMC) stock a buy or sell in 2026?
Omnicom Group Inc. (OMC) is rated Hold by Wall Street analysts as of 2026. Of 34 analysts covering the stock, 10 rate it Buy or Strong Buy, 20 rate it Hold, and 4 rate it Sell or Strong Sell. The consensus 12-month price target is $94, implying +21.8% from the current price of $77.
02What is the OMC stock price target for 2026?
The Wall Street consensus price target for OMC is $94 based on 34 analyst estimates. The high-end target is $108 (+40.4% from today), and the low-end target is $83 (+7.9%).
03Is Omnicom Group Inc. (OMC) stock overvalued in 2026?
OMC trades at 7.2x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Omnicom Group Inc. (OMC) stock in 2026?
The primary risks for OMC in 2026 are: (1) Economic Sensitivity — Omnicom's revenue is closely tied to its clients' economic cycles. (2) Client Relationships — The potential loss of major clients or industry consolidation poses a significant risk to Omnicom's financial stability. (3) Digital Disruption — Rapid technological advancements in digital advertising and AI present a challenge for Omnicom. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Omnicom Group Inc.'s revenue and earnings forecast?
Analyst consensus estimates OMC will report consensus revenue of $22.1B (+11.4% year-over-year) and EPS of $2.64 (+759.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $23.5B in revenue.
06When does Omnicom Group Inc. (OMC) report its next earnings?
A confirmed upcoming earnings date for OMC is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Omnicom Group Inc. generate?
Omnicom Group Inc. (OMC) generated $3.0B in free cash flow over the trailing twelve months — a free cash flow margin of 15.1%. OMC returns capital to shareholders through dividends (3.5% yield) and share repurchases ($708M TTM).