Q1 2026 Omnicom Group Inc Earnings Call

April 28, 2026

Speaker #1: Welcome you to the Omnicom's first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Speaker #1: If you would like to ask a question, simply press star, then the number 1 on your telephone keypad. And if you'd like to withdraw that question, again, press star 1.

Speaker #1: Thank you. I would now like to turn the conference over to Greg Lundberg, Investor Relations, please go ahead.

Speaker #2: Thank you for joining our first quarter 2026 earnings call. With me today are John Wren, Chairman and Chief Executive Officer; and Phil Angelastro, Executive Vice President and Chief Financial Officer.

Speaker #2: On our website, omc.com, you will find a press release and a presentation covering the information we'll review today. An archived webcast will be available when today's call concludes.

Speaker #2: Before we start, I'd like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we've included at the end of our investor presentation.

Speaker #2: Certain of the statements made today may constitute forward-looking statements. These represent our present expectations. And relevant factors that could cause actual results to differ materially are listed in our earnings materials and in our SEC filings, including our 2025 Form 10-K.

Speaker #2: During the course of today's call, we will also discuss certain non-GAAP measures. You can find the reconciliation of these to the nearest comparable GAAP measures in the presentation materials.

Speaker #2: We will begin the call with an overview of our business from John, then Phil will review our financial results, and after our prepared remarks, we will open the line for your questions.

Speaker #2: I'll now hand the call over to John.

Speaker #3: Thank you, Greg. And good afternoon, everyone. Thank you for joining us today. I'm pleased to share highlights from our first quarter as the new Omnicom.

Speaker #3: Since closing the Interpublic Acquisition just before the holidays, we've seen momentum and cohesive growth across the organization. Our steady progress is reflected in our strong financial performance in the first quarter.

Speaker #3: As you'll recall from our fourth quarter call and investor day, we've strategically repositioned our portfolio for growth. As part of the portfolio realignment, we identified planned asset sales and disposition of businesses with approximately $3.2 billion of annual revenue.

Speaker #3: Of which, approximately $1 billion was disposed of in the first quarter. Our plan is to sell or exit the remaining assets in the next several quarters.

Speaker #3: To clarify our focus on the operations that will drive growth, we've excluded assets held for sale and planned disposition from our core operations. Revenue from core operations was $5.6 billion in the first quarter, which increased $345 million when compared to Q1 2025 revenue from core operations for the combined Omnicom and Interpublic.

Speaker #3: Organic revenue growth was $3.9%. We also updated our revenue reporting to reflect our integrated operating model, which is central to driving our growth. Phil will walk through the details of our reporting changes in his remarks.

Speaker #3: One point I want to discuss was the increase in EBITDA performance. Our adjusted EBITDA margin increased $240 basis points to $14.8% as compared to the combined operations for Q1 2025.

Speaker #3: Our non-GAAP adjusted EPS in the quarter, which excludes after-tax costs for repositioning dispositions and acquisition integration expenses and amortizations of intangibles, was $1.90 per share, an increase of 11.8% versus Q1 2025.

Speaker #3: Our solid performance for the quarter was the result of us realigning our portfolio for growth and moving decisively on our integration efforts. By integrating our capabilities upon closing, we merged or sunset more than 20 major agency brands with a long tail of smaller brands.

Speaker #3: This allowed us to quickly bring together the best talent from across the new Omnicom. Combined with our integrated client leaders, a new strategy and growth teams, our efforts have translated into new business wins.

Speaker #3: In the first quarter, these include IBM, GSK, John Deere, Little Caesar, Acadia Pharmaceuticals, and Baileys. We're not just winning new clients; we're expanding our relationships with existing ones.

John Wren: With a long tail of smaller brands. This allowed us to quickly bring together the best talent from across the new Omnicom. Combined with our integrated client leaders and new strategy and growth teams, our efforts have translated into new business wins. In Q1, these include IBM, GSK, John Deere, Little Caesars, Acadia Pharmaceuticals, and Baileys. We're not just winning new clients, we're expanding our relationships with existing ones. Our integrated approach is making it easier for clients to access all their marketing and sales needs from a single partner. This model has gained traction across a number of our clients, including Clorox, Dyson, Delta, Exxon, Kroger, Merck, and Unilever. Our growth from integrated services is helping to diversify our revenue streams and deepen our client relationships, underscoring the strength of our offerings.

Speaker #1: With a long tail of smaller brands. This allowed us to quickly bring together the best talent from across the new Omnicom. Combined with our integrated client leaders, a new strategy and growth teams, our efforts have translated into new business wins.

Speaker #3: Our integrated approach is making it easier for clients to access all their marketing and sales needs from a single partner. This model has gained traction across a number of our clients, including Clorox, Dyson, Delta, Exxon, Kroger, Merck, and Unilever.

Speaker #1: In the first quarter, these include IBM, GSK, John Deere, Little Caesar, Acadia Pharmaceuticals, and Bailey's. We're not just winning new clients; we're expanding our relationships with existing ones.

Speaker #3: Our growth from integrated services is helping to diversify our revenue streams and deepen our client relationships, underscoring the strength of our offerings. As we discussed at our investor day last month, Omni, our AI-enabled intelligent sales and marketing platform, is connecting our talent, data, and services.

Speaker #1: Our integrated approach is making it easier for clients to access all their marketing and sales needs from a single partner. This model has gained traction across a number of our clients, including Clorox, Dyson, Delta, Exxon, Kroger, Merck, and Unilever.

Speaker #3: We've scaled our next-generation of Omni across the entire organization in Q1, putting the latest agentic AI tools in the hands of all of our employees.

Speaker #1: Our growth from integrated services is helping to diversify our revenue streams and deepen our client relationships, underscoring the strength of our offerings. As we discussed at our investor day last month, Omni, our AI-enabled intelligent sales and marketing platform, is connecting our talent, data, and services.

Speaker #3: The new Omni is delivering on multiple fronts: driving stronger media performance, greater addressability, and improved measurement. Increasing speed to activation and enhancing ROI with Axiom's real ID, improving performance across retail and commerce channels, and enabling more effective marketing and client outcomes through deeper integrations with partners like Adobe and Amazon.

John Wren: As we discussed at our Investor Day last month, Omni, our AI-enabled intelligent sales and marketing platform, is connecting our talent, data, and services. We've scaled our next generation of Omni across the entire organization in Q1, putting the latest agentic AI tools in the hands of all of our employees. The new Omni is delivering on multiple fronts, driving stronger media performance, greater addressability, and improved measurement, increasing speed to activation and enhancing ROI with Acxiom's Real ID, improving performance across retail and commerce channels, and enabling more effective marketing and client outcomes through deeper integrations with partners like Adobe and Amazon. We also made significant progress to accelerate collaboration across the group. Throughout the quarter, we continued to move into hub building locations, deploy common HR and IT platforms, and migrate teams to shared workflow systems.

Speaker #1: We've scaled our next-generation of Omni across the entire organization in Q1, putting the latest agentic AI tools in the hands of all of our employees.

Speaker #3: We also made significant progress to accelerate collaboration across the group. Throughout the quarter, we continue to move into hub-building locations deploy common HR and IT platforms and migrate teams to shared workflow systems.

Speaker #1: The new Omni is delivering on multiple fronts: driving stronger media performance, greater addressability, and improved measurement. Increasing speed to activation and enhancing ROI with Axiom's real ID, improving performance across retail and commerce channels, and enabling more effective marketing and client outcomes through deeper integrations with partners like Adobe and Amazon.

Speaker #3: As we look ahead, we will continue to work toward the initiatives we've communicated in our prior calls, including $900 million in 2026 cost reduction synergies, and $1.5 billion by mid-2028.

Speaker #1: We also made significant progress to accelerate collaboration across the group. Throughout the quarter, we continue to move into hub-building locations deploy common HR and IT platforms and migrate teams to shared workflow systems.

Speaker #3: $5 billion in share repurchases over the next 12 months, including a $2.5 billion accelerated share repurchase program currently being executed. Through the ASR and open market purchases, we repurchased $2.8 billion of shares through the first quarter.

Speaker #1: As we look ahead, we will continue to work toward the initiatives we've communicated in our prior calls, including 900 million dollars and 2,026 cost reduction synergies, and 1.5 billion by mid-2028.

John Wren: As we look ahead, we will continue to work towards the initiatives we've communicated in our prior calls, including $900 million in 2026 cost reduction synergies and $1.5 billion by mid-2028. $5 billion in share repurchases over the next 12 months, including a $2.5 billion accelerated share repurchase program currently being executed. Through the ASR and open market purchases, we repurchased $2.8 billion of shares through Q1. Planned asset sales and dispositions of businesses with approximately $3.2 billion of annual revenue. Dispositions with approximately $1 billion in annual revenue have already been completed. We will continue to evaluate our portfolio to ensure we remain positioned for growth. Overall, I'm pleased with how we've executed in Q1.

Speaker #3: Planned asset sales and dispositions of businesses with approximately $3.2 billion of annual revenue, dispositions with approximately $1 billion in annual revenue have already been completed, we will continue to evaluate our portfolio to ensure we remain positioned for growth.

Speaker #1: $5 billion in share repurchases over the next 12 months, including a $2.5 billion accelerated share repurchase program currently being executed. Through the ASR and open market purchases, we repurchased $2.8 billion of shares through the first quarter.

Speaker #3: Overall, I'm pleased with how we've executed it in the first quarter. Our results clearly demonstrate the significant benefits of the combination for our people, clients, and shareholders.

Speaker #3: While we remain bullish about the combination for the year ahead, we're also mindful of the broader geopolitical environment. The ongoing conflict in the Middle East, which represents less than 2.5% of our revenue, continues to create uncertainty in the region and across the world.

Speaker #1: Plan asset sales and dispositions of businesses with approximately $3.2 billion of annual revenue. Dispositions with approximately $1 billion in annual revenue have already been completed.

Speaker #1: We will continue to evaluate our portfolio to ensure we remain positioned for growth. Overall, I'm pleased with how we've executed in the first quarter.

Speaker #3: As always, we are prioritizing the safety of our people in the region and monitoring developments closely so we can adapt quickly to changes that impact our business.

Speaker #1: Our results clearly demonstrate the significant benefits of the combination for our people, clients, and shareholders. While we remain bullish about the combination for the year ahead, we're also mindful of the broader geopolitical environment.

John Wren: Our results clearly demonstrate the significant benefits of the combination for our people, clients, and shareholders. While we remain bullish about the combination for the year ahead, we're also mindful of the broader geopolitical environment. The ongoing conflict in the Middle East, which represents less than 2.5% of our revenue, continues to create an uncertainty in the region and across the world. As always, we are prioritizing the safety of our people in the region and monitoring developments closely so we can adapt quickly to changes that impact our business. Before I close, I want to thank every member of the Omnicom team for their outstanding efforts. None of this progress would have been possible without the exceptional commitment and hard work of our people over these past few months. With that, I'll turn it over to Phil to walk through our quarterly financial results.

Speaker #3: Before I close, I want to thank every member of the Omnicom team for their outstanding efforts. None of this progress would have been possible without the exceptional commitment and hard work of our people over these past few months.

Speaker #1: The ongoing conflict in the Middle East, which represents less than 2.5% of our revenue, continues to create uncertainty in the region and across the world.

Speaker #3: With that, I'll turn it over to Phil to walk through our quarterly financial results.

Speaker #1: As always, we are prioritizing the safety of our people in the region and monitoring developments closely so we can adapt quickly to changes that impact our business.

Speaker #2: Thanks, John. This is our first quarterly report as the new Omnicom. With Interpublic's operations included, for the full 90 days of the quarter. We started the year with strong performance in revenue growth and cost reduction.

Speaker #1: Before I close, I want to thank every member of the Omnicom team for their outstanding efforts. None of this progress would have been possible without the exceptional commitment and hard work of our people over these past few months.

Speaker #2: With a meaningful amount of synergies flowing through to EBITDA. While we continue to invest for future growth, we're making significant progress integrating Interpublic's operations and positioning our portfolio for growth.

Speaker #1: With that, I'll turn it over to Phil to walk through our quarterly financial results.

Speaker #2: I will start on slide three. We know that there are a lot of moving pieces right now, and we want to make things easy for you to understand.

Philip Angelastro: Thanks, John. This is our first quarterly report as the new Omnicom, with Interpublic's operations included for the full 90 days of Q1. We started the year with strong performance in revenue growth and cost reduction, with a meaningful amount of synergies flowing through to EBITDA, while we continue to invest for future growth. We're making significant progress integrating Interpublic's operations and positioning our portfolio for growth. I will start on slide 3. We know that there are a lot of moving pieces right now, and we want to make things easy for you to understand. This slide should help. It presents what we call our Core Operations. Our Core Operations are comprised of our operating businesses, excluding dispositions and asset sales for sale. To ensure it's clear, our main focus in driving the company forward is on our Core Operations.

Speaker #2: This slide should help. It presents what we call our core operations. Our core operations are comprised of our operating businesses, excluding dispositions, and assets held for sale.

Speaker #2: With a meaningful amount of synergies flowing through to EBITDA. While we continue to invest for future growth. We're making significant progress integrating Interpublic's operations and positioning our portfolio for growth.

Speaker #2: To ensure it's clear, our main focus in driving the company forward is on our core operations. As we talked about at investor day, our core operations are the result of our ongoing strategic repositioning of the portfolio for growth and reflect our sharpened focus on the highest growing, most connected parts of our business.

Speaker #2: I will start on slide three. We know that there are a lot of moving pieces right now, and we want to make things easy for you to understand.

Speaker #2: This slide should help. It presents what we call our core operations. Our core operations are comprised of our operating businesses, excluding dispositions, and assets held for sale.

Speaker #2: Businesses included in the dispositions and held-for-sale category will be sold in 2026, and they represented less than 5% of our adjusted operating income in the first quarter.

Speaker #2: And our only priority regarding these businesses is to complete these disposals in a timely fashion. This slide also presents operating income and EBITDA on a non-gap adjusted basis.

Philip Angelastro: As we talked about at Investor Day, our core operations are the result of our ongoing strategic repositioning of the portfolio for growth and reflect our sharpened focus on the highest growing, most connected parts of our business. Businesses included in the dispositions and held for sale category will be sold in 2026. They represented less than 5% of our adjusted operating income in Q1. Our only priority regarding these businesses is to complete these disposals in a timely fashion. This slide also presents operating income and EBITDA on a non-GAAP adjusted basis, excluding severance and repositioning costs, loss on dispositions, and acquisition integration costs. For comparison purposes on this slide, we've included 2025 prior year combined amounts prepared on a similar basis. As you can see, revenue from core operations grew 6.7% in total.

Speaker #2: Excluding severance and repositioning costs, loss on dispositions, and acquisition integration costs. For comparison purposes on this slide, we've included 2025 prior year combined amounts prepared on a similar basis.

Speaker #2: And reflect our sharpened focus on the highest-growing, most connected parts of our business. Businesses included in the dispositions and held-for-sale category will be sold in 2026.

Speaker #2: And they represented less than 5% of our adjusted operating income in the first quarter. And our only priority regarding these businesses is to complete these disposals in a timely fashion.

Speaker #2: As you can see, revenue from core operations grew 6.7% in total. Adjusted EBITDA grew 180 million dollars. Or over 27%. And adjusted EBITDA margin increased to 14.8% from 12.4%.

Speaker #2: This slide also presents operating income and EBITDA on a non-gap adjusted basis. Excluding severance and repositioning costs, loss on dispositions, and acquisition integration costs.

Speaker #2: Primarily driven by cost reduction synergies from the acquisition of Interpublic. We are pleased with this strong performance on both revenue and adjusted EBITDA and we are on track to achieve our operating plans and targets for the year.

Speaker #2: For comparison purposes on this slide, we've included 2025 prior year combined amounts prepared on a similar basis. As you can see, revenue from core operations grew 6.7% in total.

Speaker #2: Turning to slide four, we present our reported results as we've traditionally have as well as the related non-gap adjusted amounts. This slide presents our reported results including all entities.

Speaker #2: Adjusted EBITDA grew 180 million dollars. Or over 27%. And adjusted EBITDA margin increased to 14.8% from 12.4%. Primarily driven by cost reduction synergies from the acquisition of Interpublic.

Philip Angelastro: Adjusted EBITDA grew $180 million, or over 27%, and adjusted EBITDA margin increased to 14.8% from 12.4%, primarily driven by cost reduction synergies from the acquisition of Interpublic. We are pleased with this strong performance on both revenue and adjusted EBITDA, and we are on track to achieve our operating plans and targets for the year. Turning to slide four, we present our reported results as we traditionally have, as well as the related non-GAAP adjusted amounts. This slide presents our reported results, including all entities, core operations, dispositions that occurred during the quarter for the period that they were part of Omnicom, and entities that are classified as held for sale. Since these are reported results, the 2025 presentation reflects the prior year results of Omnicom and does not include Interpublic.

Speaker #2: Core operations, dispositions that occurred during the quarter, for the period that they were part of Omnicom, and entities that are classified as held-for-sale. Since these are reported results, the 2025 presentation reflects the prior year results of Omnicom and does not include Interpublic.

Speaker #2: We're pleased with this strong performance on both revenue and adjusted EBITDA. And we are on track to achieve our operating plans and targets for the year.

Speaker #2: Turning to slide four, we present our reported results as we traditionally have, as well as the related non-GAAP adjusted amounts. This slide presents our reported results, including all entities.

Speaker #2: The center column for each period shows the applicable non-gap adjustments. In the first quarter of 2026, we recorded integration-related costs of $59 million. Which are recorded on the SG&A expense line.

Speaker #2: Core operations, dispositions that occurred during the quarter, for the period that they were part of Omnicom. And entities that are classified as held-for-sale. Since these are reported results, the 2025 presentation reflects the prior year results of Omnicom.

Speaker #2: We recorded the loss on dispositions of $34 million. And we recorded severance and repositioning costs of $4 million. When considering the change in operating income on both the reported and adjusted basis, note that it includes $117 million of amortization expense related to the intangible assets acquired from Interpublic.

Speaker #2: And does not include Interpublic. The center column for each period shows the applicable non-gap adjustments. In the first quarter of 2026, we recorded integration-related costs of 59 million dollars.

Philip Angelastro: The center column for each period shows the applicable non-GAAP adjustments. In Q1 2026, we recorded integration-related costs of $59 million, which were recorded on the SG&A expense line. We recorded a loss on dispositions of $34 million. We recorded severance and repositioning costs of $4 million. When considering the change in operating income on both a reported and adjusted basis, note that it includes $117 million of amortization expense related to the intangible assets acquired from Interpublic, an increase of $96 million compared to 2025. The change in operating income also reflects a $16 million increase in depreciation expense.

Speaker #2: An increase of 96 million compared to 2025. The change in operating income also reflects a $16 million increase in depreciation expense. Below operating income, net interest expense increased 29 million in Q1 of 2025.

Speaker #2: These are recorded on the SG&A expense line. We recorded the loss on dispositions of $34 million, and we recorded severance and repositioning costs of $4 million.

Speaker #2: An increase of $43 million. Primarily resulting from assuming Interpublic's debt of approximately $3 billion in Q4 Q1 2026 increased by $60 million. Primarily from interest expense from Interpublic which added approximately $47 million.

Speaker #2: When considering the change in operating income on both the reported and adjusted basis, note that it includes 117 million of amortization expense, related to the intangible assets acquired from Interpublic.

Speaker #2: An increase of 96 million compared to 2025. The change in operating income also reflects a 16 million dollar increase in depreciation expense. Below operating income, net interest expense increased to 72 million dollars from 29 million in Q1 of 2025.

Speaker #2: Of which $3 million is non-cash interest. And higher interest expense resulting from refinancing activity completed during the first quarter of 2026. Which resulted in approximately $1 billion of incremental long-term debt.

Philip Angelastro: Below operating income, net interest expense increased to $72 million from $29 million in Q1 2025, an increase of $43 million, primarily resulting from assuming Interpublic's debt of approximately $3 billion in Q4 2025. Interest expense in Q1 2026 increased by $60 million, primarily from interest expense from Interpublic, which added approximately $47 million, of which $3 million is non-cash interest, and higher interest expense resulting from refinancing activity completed during Q1 2026, which resulted in approximately $1 billion of incremental long-term debt. Note, Q1 includes 1 month of the incremental interest expense from the new debt issuance. Additionally, interest income increased this quarter by $17 million to $47 million, primarily due to interest income earned on higher average cash balances, including cash acquired with Interpublic.

Speaker #2: An increase of 43 million. Primarily resulting from assuming Interpublic's debt of approximately 3 billion dollars in Q4 2025. Interest expense in Q1 2026 increased by 60 million dollars.

Speaker #2: Note, Q1 includes one month of the incremental interest expense from the new debt issuance. Additionally, interest income increased this quarter by $17 million to $47 million.

Speaker #2: Primarily from interest expense from Interpublic, which added approximately $47 million, of which $3 million is non-cash interest. And higher interest expense resulting from refinancing activity completed during the first quarter of 2026.

Speaker #2: Primarily due to interest income earned on higher average cash balances including cash acquired with Interpublic. Our adjusted tax rate of 26% was down slightly from 26.7% in 2025.

Speaker #2: For 2026, we expect our annual tax rate to also be 26%. Income from equity investments and non-controlling interest declined by $4 million in total.

Speaker #2: Which resulted in approximately 1 billion dollars of incremental long-term debt. Note, Q1 includes one month of the incremental interest expense from the new debt issuance.

Speaker #2: Finally, non-gap adjusted diluted EPS grew 11.8% to $1.90 from $1.70 last year. Our fully diluted weighted average shares outstanding for Q1 2026 were $299.2 million.

Speaker #2: Additionally, interest income increased this quarter by 17 million dollars to 47 million dollars. Primarily due to interest income earned on higher average cash balances including cash acquired with Interpublic.

Speaker #2: Our adjusted tax rate of 26% was down slightly from 26.7% in 2025. For 2026, we expect our annual tax rate to also be 26%.

Philip Angelastro: Our adjusted tax rate of 26% was down slightly from 26.7% in 2025. For 2026, we expect our annual tax rate to also be 26%. Income from equity investments and non-controlling interest declined by $4 million in total. Finally, non-GAAP adjusted diluted EPS grew 11.8% to $1.90 from $1.70 last year. Our fully diluted weighted average shares outstanding for Q1 2026 were 299.2 million. Actual shares outstanding at 31 March 2026 were 285.3 million, compared to 313.4 million at year-end 31 December 2025, and compared to 196.1 million shares at 31 March 2025.

Speaker #2: Actual shares outstanding at March 31, 2026 were $285.3 million compared to $313.4 million at year-end December 31, 2025. And compared to $196.1 million shares at March 31, 2025.

Speaker #2: Income from equity investments and non-controlling interest declined by 4 million dollars in total. Finally, non-gap adjusted diluted EPS grew 11.8% to $1.90 from $1.70 last year.

Speaker #2: On a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition. But they also declined as a result of our share repurchase activity which I will discuss later.

Speaker #2: Our fully diluted weighted average shares outstanding for Q1 2026 were 299.2 million. Actual shares outstanding at March 31, 2026 were 285.3 million. Compared to 313.4 million at year-end December 31, 2025.

Speaker #2: Now let's review our business in more detail beginning with the components of our revenue change on slide five. To assist in understanding the drivers of our underlying business, we've included an analysis of our growth beginning with core operations.

Speaker #2: And compared to 196.1 million shares at March 31, 2025. In a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition.

Speaker #2: Which excludes businesses classified as held-for-sale. For the first quarter of 2025, presented on a combined Omnicom Interpublic basis, revenue for Q1 2026 increased by 2.7% from positive foreign exchange rate changes and by 3.9% from organic growth.

Philip Angelastro: On a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition, but they also declined as a result of our share repurchase activity, which I will discuss later. Let's review our business in more detail, beginning with the components of our revenue change on slide 5. To assist in understanding the drivers of our underlying business, we've included an analysis of our growth beginning with core operations, which excludes businesses that have been disposed of or are classified as held for sale. For Q1 2025, presented on a combined Omnicom-Interpublic basis, revenue for Q1 2026 increased by 2.7% from positive foreign exchange rate changes and by 3.9% from organic growth.

Speaker #2: But they also declined as a result of our share repurchase activity, which I will discuss later. Now, let's review our business in more detail, beginning with the components of our revenue change on slide five.

Speaker #2: We expect FX will continue to be positive in 2026. And assuming recent FX rates stay the same, will benefit our reported revenue for the year by approximately 1%.

Speaker #2: To assist in understanding the drivers of our underlying business, we've included analysis of our growth beginning with core operations. Which excludes businesses that have been disposed of or are classified as held-for-sale.

Speaker #2: Relative to our traditional presentation in this table, there is no row for acquisition and disposition revenue because there were no acquisitions during the quarter and as we have noted, dispositions have been removed from the opening balance of core operations revenue.

Speaker #2: For the first quarter of 2025, presented on a combined Omnicom Interpublic basis, revenue for Q1 2026 increased by 2.7% from positive foreign exchange rate changes and by 3.9% from organic growth.

Speaker #2: Turning to slide six, you can see our core operations revenue by discipline. Presentation of our disciplines has been updated from 2025. As we discussed that investor day, the strategic reshaping of our portfolio for the Interpublic acquisition will result in a business with more than half of our revenue coming from the faster-growing integrated media business.

Speaker #2: We expect FX will continue to be positive in 2026. And assuming recent FX rates stay the same, it will benefit our reported revenue for the year by approximately 1%.

Philip Angelastro: We expect FX will continue to be positive in 2026, assuming recent FX rates stay the same, will benefit our reported revenue for the year by approximately 1%. Relative to our traditional presentation in this table, there is no row for acquisition and disposition revenue because there were no acquisitions during the quarter, as we have noted, dispositions have been removed from the opening balance of core operations revenue. Turning to slide 6, you can see our core operations revenue by discipline. Presentation of our disciplines has been updated from 2025. As we discussed at Investor Day, the strategic reshaping of our portfolio through the Interpublic acquisition will result in a business with more than half of our revenue coming from a faster-growing Integrated Media business. Integrated Media includes our media, commerce, data, CRM and consulting, and content automation businesses.

Speaker #2: Integrated media includes our media, commerce, data, CRM and consulting, and content automation businesses. Revenue from our core operations in the first quarter of 2026 for integrated media was approximately $52% of our revenues.

Speaker #2: And for advertising, the 17%. Health, 10%. PR, 12%. And experience and other, 10%. Q1 revenue growth from core operations was as follows. Integrated media led the way with very strong growth in the high single digits.

Speaker #2: Integrated media includes our media, commerce, data, CRM and consulting, content automation businesses. Revenue from our core operations in the first quarter of 2026 for integrated media was approximately 52% of our revenues.

Speaker #2: PR and experiential and other grew in the quarter mid-single digits. Health had positive growth and advertising was down in Q1. We're not providing detailed prior year combined revenue balances or organic growth by discipline or region.

Philip Angelastro: Revenue from our core operations in Q1 2026 for integrated media was approximately 52% of our revenues. For advertising, 17%, health, 10%, PR, 12%, and experiential and other, 10%. Q1 revenue growth from core operations was as follows: integrated media led the way with very strong growth in the high single digits. PR and experiential and other grew in the quarter mid-single digits. Health had positive growth, and advertising was down in Q1. We're not providing detailed prior combined revenue balances or organic growth by discipline or region because our integration process is ongoing, and we continue to evaluate the portfolio. Slide seven shows our core operations revenue by region. As we highlighted when we announced the Interpublic acquisition, the transaction gives us greater relative exposure in the US, which was 61% of revenues this quarter.

Speaker #2: And for advertising, 17%, health, 10%, PR, 12%, and experiential and other, 10%. Q1 revenue growth from core operations was as follows. Integrated media led the way with very strong growth in the high single digits.

Speaker #2: Because our integration process is ongoing and we continue to evaluate the portfolio. Slide seven shows our core operations revenue by region. As we highlighted when we announced the Interpublic acquisition, the transaction gives us greater relative exposure in the US which was 61% of revenues this quarter.

Speaker #2: Together, the UK and Europe were 21% followed by Asia Pacific at 9%. In Q1, revenue growth in the US was strong and delivered mid-single digit growth.

Speaker #2: Europe and Latin America and Asia Pacific were also up low single digits. And the UK and Middle East and Africa declined. Slide eight is our revenue weighted by the industry sectors of our clients.

Speaker #2: Because the first quarter of 2026 reflects a full quarter of Interpublic, there are some changes worth noting relative to the prior year Omnicom 2025 amounts.

Speaker #2: Together, the UK and Europe were 21% followed by Asia Pacific at 9%. In Q1, revenue growth in the US was strong and delivered mid-single digit growth.

Philip Angelastro: Together, the UK and Europe were 21%, followed by Asia Pacific at 9%. In Q1, revenue growth in the US was strong and delivered mid-single-digit growth. Europe, Latin America, and Asia Pacific were also up low single digits, and the UK and Middle East and Africa declined. Slide 8 is our revenue weighted by the industry sectors of our clients. Because the first quarter of 2026 reflects a full quarter of Interpublic, there are some changes worth noting relative to the prior year Omnicom 2025 amounts. The largest changes were the pharma and health and auto categories. There were small changes to our other categories, which moved up or down 1 or 2 points, with increases in financial services, retail, and services, and decreases in food and beverage, travel and entertainment, and government. Now please turn to slide 9 for our year-to-date free cash flow summary.

Speaker #2: The largest changes were the pharma and health and auto categories. There were small changes to our other categories which moved up or down one or two points.

Speaker #2: With increases in financial services, retail, and services. And decreases in food and beverage, travel and entertainment, and government. Now please turn to slide nine for our year-to-date free cash flow summary.

Speaker #2: Europe, Latin America, and Asia Pacific were also up low single digits. The UK and Middle East and Africa declined. Slide eight is our revenue weighted by the industry sectors of our clients.

Speaker #2: Because the first quarter of 2026 reflects a full quarter of Interpublic, there are some changes worth noting relative to the prior year Omnicom 2025 amounts.

Speaker #2: The 70% increase relative to our last year excuse me. The 70% increase relative to last year was driven by the addition of Interpublic and improved performance in Omnicom's business.

Speaker #2: The largest changes were the pharma and health and auto categories. There were small changes to our other categories which moved up or down 1 or 2 points.

Speaker #2: Our free cash flow definition excludes changes in operating capital. Which is seasonal with the first quarter generally the largest use of cash during the year.

Speaker #2: With increases in Financial Services, Retail, and Services, and decreases in Food and Beverage, Travel and Entertainment, and Government. Now, please turn to slide nine for our year-to-date free cash flow summary.

Speaker #2: There's a reconciliation in the appendix that shows the change in operating capital for the quarter was flat compared to the change from the first quarter of last year.

Speaker #2: The 70% increase relative to last year—excuse me—the 70% increase relative to last year was driven by the addition of Interpublic and improved performance in Omnicom's business.

Philip Angelastro: The 70% increase relative to last year was driven by the addition of Interpublic and improved performance in Omnicom's business. Our free cash flow definition excludes changes in operating capital, which is seasonal, with Q1 generally the largest use of cash during the year. There's a reconciliation in the appendix that shows the change in operating capital for the quarter was flat compared to the change from Q1 of last year. For the 3 months ended 31 March 2025, our primary uses of free cash flow included $252 million of cash paid for dividends to common shareholders and another $12 million for dividends to non-controlling interest shareholders.

Speaker #2: For the three months ended March 31, 2025, our primary uses of free cash flow included $252 million of cash paid for dividends to common shareholders.

Speaker #2: And another $12 million for dividends to non-controlling interest shareholders. Dividend payments increased year over year as a result of the shares issued for the Interpublic acquisition.

Speaker #2: Our free cash flow definition excludes changes in operating capital. Which is seasonal with the first quarter generally the largest use of cash during the year.

Speaker #2: And an increase in our quarterly dividend payment. Quarterly dividend payment approximates the combined dividend payments made by Omnicom and Interpublic in Q1 of 2025.

Speaker #2: There's a reconciliation in the appendix that shows a change in operating capital for the quarter was flat compared to the change from the first quarter of last year.

Speaker #2: Capital expenditures were $61 million higher than the prior year due to the Interpublic acquisition. But at the same overall level relative to the size of the business.

Speaker #2: For the three months ended March 31, 2025, our primary uses of free cash flow included $252 million of cash paid for dividends to common shareholders, and another $12 million for dividends to non-controlling interest shareholders.

Speaker #2: Total contingent purchase price payments and payments for the acquisitions of non-controlling interests were $16 million. Finally, our share purchase activity for the first quarter was $2.8 billion.

Speaker #2: Dividend payments increased year over year as a result of the shares issued for the Interpublic acquisition. And an increase in our quarterly dividend payment.

Philip Angelastro: Dividend payments increased year over year as a result of the shares issued for the Interpublic acquisition and an increase in our quarterly dividend payment. Quarterly dividend payment approximates the combined dividend payments made by Omnicom and Interpublic in Q1 of 2025. Capital expenditures were $61 million, higher than the prior year due to the Interpublic acquisition, but at the same overall level relative to the size of the business. Total contingent purchase price payments and payments for the acquisitions of non-controlling interests were $16 million. Finally, our share repurchase activity for Q1 was $2.8 billion, excluding proceeds from stock plans of $16 million.

Speaker #2: Excluding proceeds from stock plans at $16 million. The majority of this resulted from our accelerated share purchase program which drove a significant reduction in shares outstanding to 285.3 million as of March 31, 2026.

Speaker #2: Quarterly dividend payment approximates the combined dividend payments made by Omnicom and Interpublic in Q1 of 2025. Capital expenditures were $61 million, higher than the prior year due to the Interpublic acquisition.

Speaker #2: But at the same overall level relative to the size of the business. Total contingent purchase price payments and payments for the acquisitions of non-controlling interests were $16 million.

Speaker #2: A reduction of 28.1 million shares from December 31, 2025. We have significant remaining capacity under our $5 billion total share purchase plan. And our plan is to complete the $5 billion over the next 12 months or by the end of April 2027.

Speaker #2: Finally, our share purchase activity for the first quarter was $2.8 billion. Excluding proceeds from stock plans at $16 million. The majority of this resulted from our accelerated share purchase program which drove a significant reduction in shares outstanding to 285.3 million as of March 31, 2026.

Speaker #2: We estimate that relative to our shares outstanding on December 31, 2025, of $313.4 million shares, we will see our share count decline approximately 11 to 12 percent by December 31, 2026.

Philip Angelastro: The majority of this resulted from our accelerated share repurchase program, which drove a significant reduction in shares outstanding to 285.3 million as of 31 March 2026, a reduction of 28.1 million shares from 31 December 2025. We have significant remaining capacity under our $5 billion total share repurchase plan, and our plan is to complete the $5 billion over the next 12 months or by the end of April 2027. We estimate that relative to our shares outstanding at 31 December 2025, of 313.4 million shares, we will see our share count decline approximately 11% to 12% by 31 December 2026, and that weighted average shares outstanding for the year will decline approximately 8% to 9%. Slide 10 is a summary of our credit, liquidity, and debt maturities.

Speaker #2: And that weighted average shares outstanding for the year will decline approximately 8 to 9 percent. Slide 10 is a summary of our credit, liquidity, and debt maturities.

Speaker #2: At the end of Q1 2026, our gross long-term debt was $10.2 billion. Since December 31, 2026, our debt is approximately $1 billion higher. Reflecting the retirement of our $1.4 billion 3.6% senior notes due April 15, 2026.

Speaker #2: Or by the end of April 2027. We estimate that relative to our shares outstanding on December 31, 2025, of $313.4 million shares, we will see our share count decline approximately 11 to 12 percent by December 31, 2026.

Speaker #2: And the issuance of new senior notes totaling $2.3 billion. Including $1.7 billion of US dollar denominated notes at a weighted average coupon of 4.9%.

Speaker #2: And that weighted average shares outstanding for the year will decline approximately 8 to 9 percent. Slide 10 is a summary of our credit, liquidity, and debt maturities.

Speaker #2: At the end of Q1 2026, our gross long-term debt was $10.2 billion. Since December 31, 2026, our debt is approximately $1 billion higher, reflecting the retirement of our $1.4 billion 3.6% senior notes due April 15, 2026.

Speaker #2: And $600 million of euro denominated notes at a 3.85% coupon. The maturities range from three years to 10 years. Which you can see in page.

Philip Angelastro: At the end of Q1 2026, our gross long-term debt was $10.2 billion. Since 31 December 2026, our debt is approximately $1 billion higher, reflecting the retirement of our $1.4 billion, 3.6% senior notes due 15 April 2026, and the issuance of new senior notes totaling $2.3 billion, including $1.7 billion of US dollar-denominated notes at a weighted average coupon of 4.9% and EUR 600 million of euro-denominated notes at a 3.85% coupon. The maturities range from 3 years to 10 years, which you can see in the maturity chart on this page. Our next maturity is not until July 2027. Net interest expense is expected to increase by approximately $200 million in 2026 compared to 2025.

Speaker #2: Our next maturity is not until July of 2027. Net interest expense is expected to increase by approximately $200 million in 2026 compared to 2025.

Speaker #2: And the issuance of new senior notes totaling $2.3 billion. Including $1.7 billion of US dollar denominated notes at a weighted average coupon of 4.9%.

Speaker #2: Of this increase, $13 million is non-cash interest. The changes primarily driven by higher interest expense from the inclusion of Interpublic's debt were refinancing I just described as well as interest on incremental commercial paper borrowings of approximately $10 million.

Speaker #2: And $600 million of euro denominated notes at a 3.85% coupon. The maturities range from three years to 10 years, which you can see in the maturity chart on this page.

Speaker #2: Our next maturity is not until July of 2027. Net interest expense is expected to increase by approximately $200 million in 2026 compared to 2025.

Speaker #2: And lower interest income on cash balances of approximately $20 million. Primarily due to lower forecasted short-term interest rates on invested cash. Please note that the total and net leverage ratios on this slide which compares the last 12 months ended March 31, 2026, and 2025 reflect the full assumption of Interpublic's debt.

Philip Angelastro: Of this increase, $13 million is non-cash interest. The change is primarily driven by higher interest expense from the inclusion of Interpublic's debt-The refinancing I just described, as well as interest on incremental commercial paper borrowings of approximately $10 million and lower interest income on cash balances of approximately $20 million, primarily due to lower forecasted short-term interest rates on invested cash. Please note that the total and net leverage ratios on this slide, which compares the last 12 months ended 31 March 2026 and 31 March 2025, reflect the full assumption of Interpublic's debt, but only four months of Omnicom's EBITDA results, including Interpublic. However, at 31 March 2026, we were in compliance with the leverage ratio covenant in our credit facility, which makes pro forma adjustments for the impact of the acquisition.

Speaker #2: But only four months of Omnicom's EBITDA results including Interpublic However, at March 31, 2026, we were in compliance with the leverage ratio covenant in our credit facility.

Speaker #2: And lower interest income on cash balances of approximately $20 million. Primarily due to lower forecasted short-term interest rates on invested cash. Please note that the total and net leverage ratios on this slide which compares the last 12 months ended March 31, 2026, in 2025 reflect the full assumption of Interpublic's debt.

Speaker #2: Which makes pro forma adjustments for the impact of the acquisition. The calculation of total debt to pro forma adjusted EBITDA done in accordance with the definition in our credit agreement results in a total leverage ratio of 2.5 times.

Speaker #2: A cash equivalence in short-term investments at the end of the quarter were 4.3 billion. A liquidity also includes an undrawn 3.5 billion revolving credit facility.

Speaker #2: But only four months of Omnicom's EBITDA results including Interpublic However, at March 31, 2026, we were in compliance with the leverage ratio covenant in our credit facility.

Speaker #2: Which backstops our $3 billion commercial paper program. In closing, we've completed our first full quarter as the new Omnicom. Our operations delivered solid top and bottom line growth.

Speaker #2: Which makes pro forma adjustments for the impact of the acquisition. The calculation of total debt to pro forma adjusted EBITDA, done in accordance with the definition in our credit agreement, results in a total leverage ratio of 2.5 times.

Philip Angelastro: The calculation of total debt to pro forma adjusted EBITDA, done in accordance with the definition in our credit agreement, results in a total leverage ratio of 2.5x. Our cash equivalents and short-term investments at the end of the quarter were $4.3 billion. Our liquidity also includes an undrawn $3.5 billion revolving credit facility, which backstops our $3 billion commercial paper program. In closing, we completed our first full quarter as the new Omnicom. Our operations delivered solid top and bottom line growth. We are realizing significant cost reduction synergies while investing for future growth. Our balance sheet is strong, and we are deploying capital for the benefit of shareholders in the long run. I will now ask the operator to please open the lines up for questions and answers. Thank you.

Speaker #2: We are realizing significant cost reduction synergies while investing for future growth. Our balance sheet is strong and we are deploying capital for the benefit of shareholders.

Speaker #2: Our cash equivalents and short-term investments at the end of the quarter were 4.3 billion. Our liquidity also includes an undrawn 3.5 billion revolving credit facility.

Speaker #2: In the long run. I will now ask the operator to please open the lines up for questions and answers. Thank you.

Speaker #1: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue.

Speaker #1: And if you'd like to withdraw that question, again, press star one. Your first question comes from Stephen Cahill with Wells Fargo. Please go ahead.

Speaker #2: We are realizing significant cost reduction synergies while investing for future growth. Our balance sheet is strong and we are deploying capital for the benefit of shareholders.

Speaker #2: Thank you, first I was wondering if you could talk a little more about some of the revenue by discipline? So I was just wondering if we could get some underlying trends or even growth rates, especially of what you're seeing in integrated media versus advertising versus health.

Speaker #2: In the long run. I will now ask the operator to please open the lines up for questions and answers. Thank you.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw that question, again, press star one. Your first question comes from Steven Cahall with Wells Fargo. Please go ahead.

Speaker #2: to kind of understand the trajectories you talked a lot about, those disciplines at the investor day. So would love to understand how, how they're trending.

Speaker #1: And if you'd like to withdraw that question, again, press star one. Your first question comes from Steven Cahill with Wells Fargo. Please go ahead.

Speaker #2: and then Phil, I was just wondering if you cared to provide any additional update to the adjusted EPS growth guidance? I think the prior guidance is, is double digit.

Speaker #2: Thank you, first I was wondering if you could talk a little more about some of the revenue by discipline? So, I was just wondering if we could get some underlying trends or even growth rates, especially of what you're seeing in integrated media versus advertising versus health.

Steven Cahall: Thank you. First I was wondering if you could talk a little more about some of the revenue by discipline. I was just wondering if we could get some underlying trends or even growth rates, especially of what you're seeing in integrated media versus advertising versus health, to kind of understand the trajectories. You talked a lot about those disciplines at the Investor Day, so would love to understand how they're trending. Phil, I was just wondering if you cared to provide any additional update to the adjusted EPS growth guidance. I think the prior guidance is double digit. You know, I mean, you said that the share count alone gets you to 8% to 9% this year. It seems like it's gonna be a very, very healthy interpretation of double digit.

Speaker #2: You know, I mean, you, you said that, the share count alone gets you to 8 to 9 percent this year. So it seems like it's going to be a very, very healthy interpretation of double digit.

Speaker #2: and we saw some of that in the first quarter results. So I was wondering how we can think about maybe some guardrails around where, EPS growth can come in for the year.

Speaker #2: to kind of understand the trajectories you talked a lot about, those disciplines that the investor day. So would love to understand how, how they're trending.

Speaker #2: Thank you.

Speaker #3: Sean, I'll, I'll give some detail and then, and then John can add some color. But as far as the disciplines go, as I said in my prepared remarks, integrated media certainly led the way in terms of growing.

Speaker #2: and then Phil, I was just wondering if you cared to provide any additional update to the adjusted EPS growth guidance. I think the prior guidance is, is double digit.

Speaker #3: high single digits. PR and experiential and other grew. mid single digits, health was positive for the year. Low single digits and, and advertising was down.

Speaker #2: and we saw some of that in the first quarter results. So I was wondering how we can think about maybe some guardrails around where, EPS growth can come in for the year.

Steven Cahall: We saw some of that in the Q1 results. I was wondering how we can think about maybe some guardrails around where EPS growth can come in for the year. Thank you.

Speaker #3: I think there's an awful lot going on as we integrate all these businesses. and, and we're certainly pleased with our progress to date and the growth to date.

Speaker #2: Thank you.

Philip Angelastro: I'll give some detail and then John can add some color. As far as the disciplines go, as I said in my prepared remarks, integrated media certainly led the way in terms of growing high single digits. PR and experiential and other group, mid-single digits. Health was positive for the year, low single digits, and advertising was down. I think there's an awful lot going on as we integrate all these businesses, and we're certainly pleased with our progress to date and the growth to date. In terms of additional details with specifics, you know, that's about as specific as we're gonna get this early in the year in our first full 90-day quarter. In terms of trends, you wanna give some comments, John, there?

Speaker #3: but in terms of additional details with specifics, you know, that's, that's about as specific as we're going to get. this early in the year.

Speaker #3: In our first full 90-day quarter, in terms of trends, you want to you want to give some comments, John, there.

Speaker #3: High single digits. PR and experiential and other grew mid-single digits. Health was positive for the year, low single digits, and advertising was down.

Speaker #4: Yeah. Stephen, the only thing I would add to what Phil said was, and I mentioned this in my comments. We, we remain very healthy in terms of competition, in terms of winning our fair share of new business.

Speaker #3: I think there's an awful lot going on as we integrate all these businesses, and we're certainly pleased with our progress to date and the growth to date.

Speaker #4: And that's great considering we're bringing two big organizations together. And so it's a very short period of time. We're functioning very well. But if there's an underlying trend that's out there, it, it's really clients especially with the change in the landscape of the industry clients are becoming more focused on selecting a single provider to take care of most of their needs.

Speaker #3: But in terms of additional details with specifics, you know, that's about as specific as we're going to get this early in the year.

Speaker #3: In our first full 90-day quarter, in terms of trends, you want to, you want to give some comments, John, there.

Speaker #4: Yeah, Steven, the only thing I would add to what Phil said was—and I mentioned this in my comments—we remain very healthy in terms of competition, in terms of winning our fair share of new business.

John Wren: Yeah. Steven, the only thing I would add to what Phil said was, and I mentioned this in my comments, we remain very healthy in terms of competition, in terms of winning our fair share of new business. That's great considering we're bringing two big organizations together in such a very short period of time. We're functioning very well. If there's an underlying trend that's out there, it's really clients, especially with the change in the landscape of the industry, clients are becoming more focused on selecting a single provider to take care of most of their needs. We saw during the quarter that we were able to extend to multi-year contracts quite a number of clients, and that's a focus that we're gonna continue to work on as we get further and further into the year.

Speaker #4: And we saw it during the quarter that we were able to extend to multi-year contracts quite a number of clients. And that's a focus that we're going to continue to work on as we get further and further into the year.

Speaker #4: And that's great considering we're bringing two big organizations together. And so it's a very short period of time. We're functioning very well. But if there's an underlying trend that's out there, it, it's really clients, especially with the change in the landscape of the industry, clients are becoming more focused on selecting a single provider to take care of most of their needs.

Speaker #4: That gives us security and that gives us a, a better ability to plan as we move forward. And, it's our size. It's our influence that is contributing to all this.

Speaker #4: Not to mention the state of the art investments we've made in, in terms of, Omni and Omni AI and, and the, the, the breakthroughs and the contributions we're making there.

Speaker #4: so that's all I would add to the color that Phil mentioned.

Speaker #4: That gives us security, and that gives us a better ability to plan as we move forward. And it's our size, it's our influence that is contributing to all this.

John Wren: That gives us security, and that gives us a better ability to plan as we move forward. It's our size, it's our influence that is contributing to all this, not to mention the state-of-the-art investments we've made in terms of Omni and Omni AI and the breakthroughs and the contributions we're making there. That's all I would add to the color that Phil mentioned.

Speaker #3: Yeah. Then I'll, I'll, I'll answer the, the EPS question. So, so certainly we're pleased in the first quarter. you know, diluted EPS grew almost 12%.

Speaker #4: Not to mention the state of the art investments we've made in, in terms of, Omni and Omni AI. And, and the, the, the breakthroughs and the contributions we're making there.

Speaker #3: I think as we go through the rest of the quarters for the year, when we talk about double digit, I, I think at this point we'd certainly say we expect probably the quarters as they roll out are going to be higher double digits than the first quarter performance.

Speaker #4: So that's all I would add to the color that Phil mentioned.

Speaker #3: I think at this point we're going to leave it at that. But, we're certainly pleased with, with the quarter and, and we expect you know, good performance to continue on that front.

Speaker #3: Yeah. Then I'll, I'll answer the EPS question. So, certainly we're pleased in the first quarter. You know, diluted EPS grew almost 12%.

Philip Angelastro: Yeah. I'll answer the EPS question. Certainly we're pleased in Q1. You know, diluted EPS grew almost 12%. I think as we go through the rest of the quarters for the year, when we talk about double digit, I think at this point we'd certainly say we expect probably the quarters as they roll out are gonna be higher double digits than the Q1 performance. I think at this point we're gonna leave it at that, we're certainly pleased with the quarter and we expect, you know, good performance to continue on that front.

Speaker #2: Thank you.

Speaker #3: Sure.

Speaker #1: Your next question comes from the line of David Karnovsky with JP Morgan. Please go ahead.

Speaker #5: All right. Thank you. John, just with the integration, wanted to see if you could comment a bit more on healthcare and PR. I think those were two areas you talked in the past about the scale of combining with IPG and the opportunity going forward.

Speaker #3: I think at this point we're going to leave it at that. But we're certainly pleased with the quarter, and we expect good performance to continue on that front.

Speaker #5: So kind of what's been the experience to date and, and what are you seeing generally across these disciplines? And then Phil, I'll revisit the investor day also.

Speaker #2: Thank you.

John Wren: Thank you.

Speaker #5: you guys had provided a, an expectation of 4%, constant currency growth for the, the core businesses. you know, that was well within to the kind of macro volatility we've seen, but just, you know, was curious if there was any, update there, to give.

Speaker #3: Sure.

Philip Angelastro: Sure.

Speaker #1: Your next question comes from the line of David Karnovsky with JP Morgan. Please go ahead.

Operator: Your next question comes from the line of David Karnovsky with J.P. Morgan. Please go ahead.

Speaker #5: All right. Thank you. John, just with the integration, wanted to see if you could comment a bit more on healthcare and PR. I think these were two areas you talked about in the past, about the scale of combining with IPG and the opportunity going forward.

David Karnovsky: All right. Thank you. John, just with the integration, wanted to see if you could comment a bit more on healthcare and PR. I think those were two areas you talked in the past about the scale combining with IPG and the opportunity going forward. Kind of what's been the experience to date, and what are you seeing generally across these disciplines? Phil, I'll revisit the Investor Day also. You guys had provided an expectation of 4% constant currency growth for the core businesses. You know, that was well within to the kind of macro volatility we've seen. Just, you know, was curious if there was any update there to give.

Speaker #4: Sure. Sure. you know, the healthcare business, the combination of both the size that IPG had as a business and we had as a business is extraordinary.

Speaker #5: So, kind of, what's been the experience to date, and what are you seeing generally across these disciplines? And then, Phil, I'll revisit the investor day also.

Speaker #4: We, we clearly have an incredible amount of talent and representation across the whole pharma business. And what leads that, let, let us attract the best and smartest people and, and makes us, every single pharma company has to come and speak to us.

Speaker #5: You guys had provided an expectation of 4% constant currency growth for the core businesses. You know, that was well within the kind of macro volatility we've seen, but just, you know, was curious if there was any update there to give.

Speaker #4: if they want to do some of the in terms of their marketing. in terms of PR, PR is, you know, PR is a different type of business.

Speaker #4: Sure. Sure. you know, the healthcare business, the combination of both the size that IPG had as a business and we had as a business is extraordinary.

Philip Angelastro: Sure.

John Wren: Sure. you know, the healthcare business, the combination of both the size that IPG had as a business and we had as a business is extraordinary. We clearly have an incredible amount of talent and representation across the whole pharma business. What leads that, it lets us attract the best and smartest people and makes us, every single pharma company has to come and speak to us, if they wanna do something in terms of their marketing. In terms of PR is, you know, PR is a different type of business. We've been able to continue to grow it. In the past we've been affected by elections, but any negative news is behind us from 2025, we have good comps coming forward. I think I've.

Speaker #4: we've been able to continue to grow it. in the past, we've been affected by elections, but, but any negative news is behind us for from '25.

Speaker #4: We clearly have an incredible amount of talent and representation across the whole pharma business. And what leads that—let's just attract the best and smartest people.

Speaker #4: And so we have good comps coming forward. And, and I think I've the only real comments I've made is that I'm happy with the performance of those units.

Speaker #4: And, and makes us, every single pharma company has to come and speak to us, if they want to do some of the in terms of their marketing.

Speaker #4: as, as we go forward. a lot of combination there too. and there's synergies that are going to come out of, you know, probably the PR business more than the healthcare business.

Speaker #4: in terms of PR, PR is, you know, PR is a different type of business. we've been able to continue to grow it, in the past.

Speaker #4: But, so it's all it's all quite positive. It's, it's a very solid contributor to our overall growth. And we expect it to continue that way.

Speaker #4: We've been affected by elections, but, but any negative news is behind us for from '25. And so we have good comps coming forward. And, and I think I've the only real comments I've made is that I'm happy with the performance of those units.

Speaker #4: regarding a question on, organic growth and investor day and the 4% reference, certainly, as I said in my prepared remarks, you know, we're on track to achieve our operating plans and targets, and that would include, the organic growth reference as well.

John Wren: The only real comments I made is that I'm happy with the performance of those units as we go forward. There's a lot of combination there too. There's synergies that are gonna come out of you know, probably the PR business more than the healthcare business. It's all quite positive. It's a very solid contributor to our overall growth, and we expect it to continue that way.

Speaker #4: As we go forward, there's a lot of combination there, too, and there are synergies that are going to come out of, you know, probably the PR business more than the healthcare business.

Speaker #4: So we're, we're not changing, you know, that, that expectation at this point in time, but, but we're certainly, comfortable with, what we set on at investor day.

Speaker #4: But, so it's all, it's all quite positive. It's, it's a very solid contributor to our overall growth. And we expect it to continue that way.

Speaker #2: Thanks.

Philip Angelastro: Regarding the question on organic growth and Investor Day and the 4% reference, certainly, as I said in my prepared remarks, you know, we're on track to achieve our operating plans and targets, and that would include the organic growth reference as well. We're not changing, you know, that expectation at this point in time, but we're certainly comfortable with what we said at Investor Day.

Speaker #3: We're guarded, we're guarded a question on, organic growth and investor day and the 4% reference. Certainly, as I said in my prepared remarks, you know, we're on track to achieve our operating plans and targets, and that would include, the organic growth reference as well.

Speaker #3: Sure.

Speaker #1: Your next question comes from the line of Jason Bazinet with Citigroup. Please go ahead.

Speaker #2: Thanks. I, I just had a handful of questions. around the disposed businesses and core operations. I guess, I guess the first one is, why did you decide to sort of focus the street on core operations?

Speaker #3: So, we're not changing, you know, that expectation at this point in time, but we're certainly comfortable with what we set on at Investor Day.

Speaker #2: Why do you think that's the right way to look at the business?

Speaker #5: Because that I'm sorry. Okay. I'm sorry. All right. No, no. You go, you go right ahead. Go, go ask your questions. I'll write them down, and then I'll try to answer them.

Speaker #2: Thanks.

David Karnovsky: Thanks.

Speaker #3: Sure.

Philip Angelastro: Sure.

Speaker #1: Your next question comes from the line of Jason Bazanay with Citigroup. Please go ahead.

Operator: Your next question comes from the line of Jason Bazinet with Citigroup. Please go ahead.

Speaker #2: Okay. All right. All right. I think, and maybe I'm misremembering, you guys, gave a rough benchmark of about 10% EBIT R margins for the disposed businesses.

Jason Bazinet: Thanks. I just had a handful of questions around the disposed businesses and core operations. I guess the first one is why did you decide to sort of focus the street on core operations? Why do you think that's the right way to look at the business?

Speaker #2: And I, if I'm looking at this slide three, which is quite helpful, it looks a bit lower than that. And then third, I was just struck by the, the disposed businesses, if I'm doing the math right, looks like they shrank I don't know, 16% or something like that year over year.

Speaker #2: Why do you think that's the right way to look at the business?

Speaker #5: Because that oh, I'm sorry. Okay. I'm sorry. All right. No, no. You go, you go right ahead. Go, go ask your questions. I'll write them down, and then I'll try to answer them.

John Wren: Because.

Philip Angelastro: Because-

John Wren: Oh, I'm sorry.

Speaker #2: which is far worse than I would have thought any business, you know, you know, would be performing even if even a bad business, to put it that way, that you might be disposing.

Philip Angelastro: It's okay.

John Wren: Sorry. All right.

Jason Bazinet: No, go ahead. Go ahead.

John Wren: No, no. You go right ahead. You go ask your questions. I will write them down, and then I will try to answer them.

Speaker #2: Okay, all right. All right. I think, and maybe I'm misremembering, you guys gave a rough benchmark of about 10% EBIT R margins for the disposed businesses.

Jason Bazinet: Okay. All right, all right. I think, and maybe I'm misremembering, you guys, gave a rough benchmark of about 10% EBITDA margins for the disposed businesses. If I'm looking at the slide 3, which is quite helpful, it looks a bit lower than that. Third, I was just struck by the disposed businesses. If I'm doing the math right, it looks like they shrank, I don't know, 16% or something like that year over year, which is far worse than I would've thought any business, you know, would be performing, even a bad business, to put it that way, that you might be disposing. Those are my three.

Speaker #2: So those are my three.

Speaker #3: I mean, and you could repeat that, the, the last question? The, the you're talking about the performance of the disposed businesses?

Speaker #2: Yeah. It's just it's shrinking much more than I would have thought.

Speaker #3: Oh, well, but which, which, which numbers, which numbers are you looking at, Jason? Because I think. When you look at the year over year, yeah, when go ahead.

Speaker #3: Sorry.

Speaker #2: 748 versus 627.

Speaker #2: which is far worse than I would have thought any business, you know, you know, would be performing even if, even a bad business, to put it that way, that you might be disposing.

Speaker #3: Yeah. So some, some of those some of those businesses that were disposing of were, were actually disposed of. So, so there was a meaningful a-as we said on the year-end call in February, we had closed on the sale of an experiential business, Jack Morton, kind of the day before.

Speaker #2: So those are my three.

Speaker #3: I mean, and you could repeat that, the, the last question? The, the you're talking about the performance of the disposed businesses?

John Wren: I mean, you can repeat that on the last question. The, you're talking about the performance of the disposed businesses?

Speaker #2: Yeah. It's just it's shrinking much more than I would have thought.

Jason Bazinet: Yeah. It is just it is shrinking much more than I would have thought.

Speaker #3: Oh, well.

John Wren: Oh, well-

Speaker #3: February 15th. So the first quarter in that example has a month and a half of their revenue, but it doesn't have the second month and a half and the quarter.

Speaker #4: But which, which, which numbers, which numbers are you looking at, Jason? Because I think.

Philip Angelastro: Now which numbers are you looking at, Jason?

Speaker #2: I'm looking at.

Jason Bazinet: I'm looking at-

Speaker #4: When you look at the year over year, yeah, when go ahead. Sorry.

Philip Angelastro: When you look at the year over year.

Jason Bazinet: Report.

Philip Angelastro: Yeah. Go ahead. Sorry.

Speaker #2: 748 versus 627.

Jason Bazinet: $748 versus $627.

Speaker #4: Yeah. So some, some of those, some of those businesses that were disposing of were, were actually disposed of. So, so there was a meaningful a-as we said on the year-end call in February, we had closed on the sale of an Experiential business, Jack Morton, kind of the day before.

Speaker #3: So the revenues are down because the business was sold. So it isn't a, a performance thing. It's just a timing of when the dispositions occur.

Philip Angelastro: Yeah. Some of those businesses that we're disposing of.

Jason Bazinet: Yeah

Philip Angelastro: ... were actually disposed of. As we said on the year-end call in February, we had closed on the sale of an experiential business, Jack Morton, kind of the day before, 15 February. The Q1 in that example has a month and a half of their revenue, but it doesn't have the second month and a half in the quarter. The revenues are down because the business was sold. It isn't a performance thing.

Speaker #5: And, and Jason, I'm glad you asked the question. I really am. the what we decided when we were when we closed the, the transaction and looking at, at our businesses, is which of the businesses that are going to grow, continue to grow, and which are contributing a fair margin for, for the efforts that we're putting in.

Speaker #4: February 15th. So the first quarter in that example has a month and a half of their revenue, but it doesn't have the second month and a half and the quarter.

Speaker #4: So the revenues are down because the business was sold. So it isn't a, a performance thing. It's just a timing of, of when the dispositions occur.

Speaker #5: And the way we developed the initial list of, the 3.2 billion dollars of companies that we were going to hold for resale is, is based upon four margin performance and media unreliable growth.

Jason Bazinet: Yeah.

Philip Angelastro: It's just a timing of when the dispositions occur.

Speaker #5: And, and Jason, I'm glad you asked the question. I really am. the what we've decided when we were when we closed the, the transaction and looking at, at our businesses, is which of the businesses that are going to grow, continue to grow, and which are contributing a fair margin for, for the efforts that we're putting in.

John Wren: Jason, I'm glad you asked the question, I really am. What we decided when we closed the transaction and looking at our businesses is which of the businesses that are gonna grow, continue to grow, and which are contributing a fair margin for the efforts that we're putting in. The way we developed the initial list of $3.2 billion of companies that we were gonna hold for resale is based upon poor margin performance and media, unreliable growth. After it went through that filter, the second filter, which was the governing filter, was, is this necessary for our clients? Is this what our clients are asking for? We reached the conclusion that no, they weren't.

Speaker #5: and, and then after we it went through that filter, the second filter, which was the governing filter, was, is this necessary for our clients?

Speaker #5: Is this what our clients are asking for? And we reached the conclusion that, that no, they weren't. Now, there's a number of businesses in there.

Speaker #5: Some of them, none of them are terribly large. But there's a lot of units because we're spread out throughout the entire world. And, what we're doing is we're we're working to dispose of them, and if there was an another way to get them out of our financial statements, we would.

Speaker #5: And, and then after we— it went through that filter, the second filter, which was the governing filter, was: is this necessary for our clients?

Speaker #5: But the but there isn't. We have to until we get rid of them, we have to account for them. And that's why we decided to put, put them in, you know, in the columns that are reflected on slide three.

Speaker #5: Is this what our clients are asking for? And we reached the conclusion that, that no, they weren't. Now, there's a number of businesses in there; some of them terribly large, but there's a lot of units because we're spread out throughout the entire world.

John Wren: Now, there's a number of businesses in there, some of them, none of them are terribly large, but there's a lot of units because we're spread out throughout the entire world. What we're doing is we're working to dispose of them. If there was another way to get them out of our financial statements, we would. There isn't. We have to. Until we get rid of them, we have to account for them, and that's why we decided to put them in, you know, in the columns that are reflected on slide 3.

Speaker #2: Understood.

Speaker #5: And, and, and we maybe we were being a little optimistic or nice at investor day when we said, the margins for these businesses are 10%.

Speaker #5: And, what we're doing is we're, we're working to dispose of them, and if there was another way to get them out of our financial statements, we would, but the but there isn't.

Speaker #5: it turns out that the margins of these businesses are probably not 10%. they're probably something less. So the sooner and, and, and because and, and, and what was interesting is coming out of investor day, you could see that we had not clearly communicated that, you know, this distinction that what we're calling core now are the operations that we're planning to focus on and will contribute to the ongoing growth of Omnicom.

Speaker #5: We have to until we get rid of them, we have to account for them, and that's why we decided to put, put them in, you know, in the columns that are reflected on slide three.

Philip Angelastro: Understand.

Speaker #5: And, and, and we, maybe we were being a little optimistic or nice at Investor Day when we said the margins for these businesses are 10%.

John Wren: We maybe were being a little optimistic or nice at Investor Day when we said the margins for these businesses are 10%. It turns out that the margins of these businesses are probably not 10%. They're probably something less. What was interesting is coming out of Investor Day, you could see that we had not clearly communicated that, you know, this distinction that what we're calling core now are the operations that we're planning to focus on and will contribute to the ongoing growth of Omnicom. The non-core assets that you see will hopefully disappear as we dispose of them throughout the rest of the year.

Speaker #5: And the, the non-core assets that you see, we'll hopefully disappear as we dispose of them throughout the rest of the year.

Speaker #3: Yeah. We're just one other one other piece of input in, in terms of the margin. Certainly, the margins will likely vary by quarter. So you know, as, as we get through the year and we get through this process, you know, the historical reference is what we made.

Speaker #3: The historical reference was about 10% for that group. we'll see how each of the quarters play out. But certainly, it's a focus of ours to move expeditiously.

Speaker #5: And the, the non-core assets that you see will hopefully disappear as we dispose of them throughout the rest of the year.

Speaker #3: to complete those dispositions.

Speaker #3: Yeah. We're just one other piece of input in, in terms of the margins. Certainly, the margins will likely vary by quarter. So, you know, as we get through the year and we get through this process, you know, the historical reference is what we made.

Speaker #5: Yeah. I can't wait for the day that you're going to have to ask me that question. But I do appreciate you asking it.

Philip Angelastro: Yeah. Which is one other piece of input in terms of the margin. Certainly, the margins will likely vary by quarter. You know, as we get through the year and we get through this process, you know, the historical reference is what we made. The historical reference was about 10% for that group. We'll see how each of the quarters play out, but certainly it's a focus of ours to move expeditiously to complete those dispositions.

Speaker #2: you.

Speaker #1: Your next question comes from the line of Tim Nollen with SSR. Please go ahead.

Speaker #6: Hi. Thanks for taking my question. I've got a couple, actually related to really what a lot of people would think of as your core businesses, which are the media planning and buying businesses and then the creative business.

Speaker #3: The historical reference was about 10% for that group. We'll see how each of the quarters play out. But certainly, it's a focus of ours to move expeditiously.

Speaker #6: on the media planning, John, you made a brief reference to Agentic AI. And I wonder if you could talk a little bit more about as these, LLMs come more and more to market and enable direct communication amongst the various parties in the value chain, and as Omnicom is doing a lot of principal media buying itself, can you more directly go to publishers yourselves in ways that you have not before?

Speaker #3: to complete those dispositions.

Speaker #5: Yeah. I can't wait for the day that you're going to have to ask me that question. But I do appreciate you asking it.

John Wren: Yeah. I can't wait for the day that you never have to ask me that question, but I do appreciate you asking it. Thank you.

Speaker #2: Thank you.

Speaker #1: Your next question comes from the line of Tim Nolan with SSR. Please go ahead.

Operator: Your next question comes from the line of Tim Nollen with SSR. Please go ahead.

Speaker #6: Hi. Thanks for taking my question. I've got a couple, actually—related to really what a lot of people would think of as your core businesses, which are the media planning and buying businesses, and then the creative business.

Tim Nollen: Hi. Thanks for taking my question. I've got a couple, actually related to really what a lot of people would think of as your core businesses, which are the media planning and buying businesses and then the creative business. On the media planning, John, you made a brief reference to Agentic AI, and I wonder if you could talk a little bit more about as these LLMs come more and more to market and enable direct communication amongst the various parties in the value chain, and as Omnicom is doing a lot of principal, media buying itself, can you more directly go to publishers yourselves in ways that you have not before?

Speaker #6: And then on the creative side, I just want to push again why the advertising business was down. And I'm wondering if there might be something of a trade-off with production which I think you hold in your integrated media business, which you said was growing high single digits.

Speaker #6: On the media planning, John, you made a brief reference to agentic AI, and I wonder if you could talk a little bit more about, as these LLMs come more and more to market and enable direct communication amongst the various parties in the value chain, and as Omnicom is doing a lot of principal media buying—go to publishers yourselves in ways that you have not before?

Speaker #6: Is there maybe a little bit of a trade-off between creative advertising and production?

Speaker #5: there's a couple of very interesting questions. I'm going to answer some of them. And then I'm going to refer to Paolo who we saw our AI work to answer some of it too, Tim.

Tim Nollen: On the creative side, I just wanna push again why the advertising business was down, and I'm wondering if there might be something of a trade-off with production, which I think you hold in your integrated media business, which you said was growing high single digits. Is there maybe a little bit of a trade-off between creative advertising and production?

Speaker #5: yeah. it's, it's interesting that the quest right now and I think every major there aren't too many major groups in the quest. The major groups that are working on it is, is looking to have direct more direct relationships with the publishers.

Speaker #6: Is there maybe a little bit of a trade-off between creative advertising and production?

John Wren: There's a couple of very interesting questions. I'm gonna answer some of them, and then I'm gonna refer to Paolo, who leads our AI work to answer some of it too, Tim. Yeah, it's interesting that the quest right now, and I think every major... There aren't too many major groups, but major groups that are working on it, is looking to have more direct relationships with the publishers. That is an aim, and it's an objective, and it's something actually that we're investing in as we sit here today. When you look at... I'd be dating myself if I went back to the internet days of the nineties, but there's always a messy middle between the client, the advertiser, and what they pay for the media and reaching the consumer.

Speaker #3: there's a couple of very interesting questions. I'm going to answer some of them. And then I'm going to refer to Paolo who we saw our AI work to answer some of it too, Tim.

Speaker #5: That is an aim and it's an objective. And it's something actually that we're investing in as we sit here today. when you look at I'll be dating myself if I went back to the internet days of the '90s.

Speaker #3: yeah. it's, it's interesting that the quest right now, and I think every major there aren't too many major groups in the quest. The major groups that are working on it is, is looking to have direct more direct relationships with the publishers.

Speaker #5: But there's always a messy middle between the client, the advertiser, and what they pay for the media and reaching the consumer. And a lot of MarTech and stuff, which becomes exciting for a moment or two, and then fades away.

Speaker #5: Most of those businesses don't last very long. and there are intermediaries today that stand between us and the publishers. And they take a toll.

Speaker #3: That is an aim and it's an objective and it's something actually that we're investing in as we sit here today. when you look at I'd be dating myself if I went back to the internet days of the '90s.

Speaker #5: And the toll is paid for by the clients and by the industry itself. So that is something you can continue to ask me about in the future because that is something we're clearly working on.

Speaker #3: But there's always a messy middle between the client, the advertiser, and what they pay for the media and reaching the consumer. And a lot of MarTech and stuff, which becomes exciting for a moment or two and then fades away.

Speaker #5: the second part of your question, you know, as what happens with the quality and then I'll throw it to Paolo. our platform, in addition to being a common way for our people to communicate, to both the clients and to look at problems, and the quality of our data gives us more information data itself doesn't mean too much unless you use it properly.

John Wren: A lot of martech and stuff, which becomes exciting for a moment or two and then fades away. Most of those businesses don't last very long. There are intermediaries today that stand between us and the publishers, and they take a toll. The toll is paid for by the clients and by the industry itself. That is something you can continue to ask me about in the future because that is something we're clearly working on. The second part of your question, you know, as what happens with the quality, and then I'll throw it to Paolo, of our platform, in addition to being a common way for our people to communicate to both the clients and to look at problems, and the quality of our data, gives us more information.

Speaker #3: Most of those businesses don't last very long. And there are intermediaries today that stand between us and the publishers, and they take a toll.

Speaker #3: And the toll is paid for by the clients and by the industry itself. So that is something you can continue to ask me about in the future because that is something we're clearly working on.

Speaker #5: And, and we have the we think the best data at the moment in the industry. And it allows our creative and really smart thinkers to come up with some really different ideas and explore different opportunities.

Speaker #3: The second part of your question, you know, is what happens with the quality—and now I'll throw it to Paolo. Our platform, in addition to being a common way for our people to communicate to both the clients and to look at problems, and the quality of our data gives us more information. Data itself doesn't mean too much unless you use it properly.

Speaker #5: part of the Agentic revolution and, and what's going on is it, it reduces the need for what was previously manual work that was or semi-manual work that was required to put together Excel spreadsheets and to do a lot of other things.

John Wren: Data itself doesn't mean too much unless you use it properly. We have the, we think, the best data at the moment in the industry. It allows our creative and really smart thinkers to come up with some really different ideas and explore different opportunities. Part of the agentic revolution and what's going on is it reduces the need for what was previously manual work that was, or semi-manual work that was required to put together Excel spreadsheets and to do a lot of other things in the simplest terms. It makes us more productive.

Speaker #3: And, and we have the we think the best data at the moment in the industry. And it allows our creative and really smart thinkers to come up with some really different ideas and explore different opportunities.

Speaker #5: In the simplest terms. And it makes us more productive. and, and we believe that, that the contribution that our creative people can make and the contribution that our media cloud size and, and, and influence can make will, will maintain and help grow our profits in certain parts of the business exceeding any declines that come in because of the automation or efficiencies that we that we go through.

Speaker #3: Part of the Agentic revolution, and what's going on is it reduces the need for what was previously manual work, that was semi-manual work that was required to put together Excel spreadsheets and to do a lot of other things.

Speaker #5: And, you know, the court approves it. We grew 4%. You know, in a complicated world with a company that we just been together for 90 days.

Speaker #3: In the simplest terms, and it makes us more productive. and, and we believe that, that the contribution that our creative people can make and the contribution that our media cloud size and, and, and influence can make will, will maintain and help grow our profits in certain parts of the business.

John Wren: We believe that the contribution that our creative people can make and the contribution that our media scale, size, and influence can make will maintain and help grow our profits in certain parts of the business exceeding any declines that come in because of the automation or efficiencies that we go through. You know, the quarter proves it. We grew 4%, you know, in a complicated world with a company that we've just been together for 90 days. I don't know, Paolo, if you want to add anything.

Speaker #5: I know, Paolo, if you want to add anything to.

Speaker #2: Sure. Tim, I can address the Agentic media buying. So as we mentioned in Investor Day, you know, Omnicom's really leading the charge from our perspective on Agentic media.

Speaker #2: And the Agentic media ecosystem, you know, we're first to market with things like AdCP which is a protocol that's being defined and being evolved around Agentic media buying.

Speaker #3: Exceeding any declines that come in because of the automation or efficiencies that we that we go through. And, you know, the court approves it.

Speaker #3: We grew 4%. You know, in a complicated world, with the company that we just have been together for 90 days. I don't know, Paolo, if you want to add anything to that.

Speaker #2: what I also mentioned in Investor Day is that we had already tested the pipes and been able to have money flow through to actually buy inventory available on certain publishers.

Speaker #2: Sure, Tim, I can address the Agentic media buying. So, as we mentioned in Investor Day, you know, Omnicom's really leading the charge from our perspective on Agentic media.

Paolo Yuvienco: Sure. Tim, I can address the agentic media buying. As we mentioned in Investor Day, you know, Omnicom's really leading the charge from our perspective on agentic media and the agentic media ecosystem. You know, we're first to market with things like AdCP, which is a protocol that's being defined and being evolved around agentic media buying. What I also mentioned in Investor Day is that we had already tested the pipes and been able to have money flow through to actually buy inventory available on certain publishers. Since then, we've actually executed real media buys for several clients using our agent framework, doing agent-to-agent buying, which is all in service to shortening the media supply chain, as John articulated.

Speaker #2: Since then, we've actually executed real media buys for several clients, using our agent framework, doing agent-to-agent buying. Which is all in service to shortening the media supply chain as John articulated.

Speaker #2: And the Agentic media ecosystem, you know, we're first to market with things like AdCP, which is a protocol that's being defined and being evolved around Agentic media buying.

Speaker #2: How do we get drive higher value for our clients? Deliver a greater amount of working media dollars for our clients? And ultimately making the entire process more efficient and effective.

Speaker #2: what I also mentioned in Investor Day is that we had already tested the pipes and been able to have money flow through to actually buy inventory available on certain publishers.

Speaker #5: That's really helpful. Go ahead, Tim. Oh, I just yeah. Go ahead, Phil. Yeah.

Speaker #2: Since then, we've actually executed real media buys for several clients using our agent framework, doing agent-to-agent buying. This is all in service to shortening the media supply chain, as John articulated.

Speaker #3: if you have a follow-up for Paolo or on that go right ahead.

Speaker #5: Yeah. Can I just ask a follow-up then which is I wonder everything you're saying makes sense. I wonder what happens to your pricing models and your ability to price for your services in a world where as you said, Paolo, the media supply chain is shortening.

Speaker #2: How do we drive higher value for our clients? Deliver a greater amount of working media dollars for our clients? And ultimately make the entire process more efficient and effective.

Paolo Yuvienco: How do we drive higher value for our clients, deliver a greater amount of working media dollars for our clients, and ultimately making the entire process more efficient and effective?

Speaker #3: That's really helpful. Go ahead, Tim. Oh, I just yeah, sorry, go ahead, Paul. Yeah. If you have a follow-up for Paolo or on that, go right ahead.

John Wren: That's really helpful.

Tim Nollen: That's really helpful.

Philip Angelastro: Go ahead, Tim.

Speaker #5: I mean, are you in a position of strength to leverage to gain better pricing terms for your clients and to I mean, so far I seem to be doing well for yourselves as well.

John Wren: Yeah.

Philip Angelastro: Go ahead, Tim.

John Wren: Yeah. Go ahead, Phil. Yeah.

Philip Angelastro: If you have a follow-up for Paolo or John on that, go right ahead.

Speaker #4: Yeah. The whole environment expands, Tim. and, and we will be rewarded as a result of that. and what we're talking about taking out in effect is the lower cost type of efforts which contribute to our revenue.

Speaker #2: Yeah. Can I just ask a follow-up then, which is I wonder everything you're saying makes sense. I wonder what happens to your pricing models and your ability to price for your services in a world where as you said, Paolo, the media supply chain is shortening.

Tim Nollen: Yeah. Can I just ask a follow-up then, which is, I wonder. Everything you're saying makes sense. I wonder what happens to your pricing models and your ability to price for your services in a world where, as you said, Paolo, the media supply chain is shortening. I mean, are you in a position of strength to leverage to gain better pricing terms for your clients and to? I mean, so far you seem to be doing well for yourselves as well.

Speaker #2: I mean, are you in a position of strength to leverage to gain better pricing terms for your clients and to I mean, so far I seem to be doing well for yourselves as well.

Speaker #4: And increasingly we're moving towards performance. That's a change that's it's ongoing. Nothing's overnight even though I know everybody likes everything to be overnight. It's not overnight.

Speaker #3: Yeah. The whole environment expands, Tim. And, and we will be rewarded as a result of that. And what we're talking about taking out, in effect, is the lower cost type of efforts which contribute to our revenue.

John Wren: The whole environment expands, Tim, and we will be rewarded as a result of that. What we're talking about taking out, in effect, is the lower cost, type of efforts which contribute to our revenue. Increasingly, we're moving towards performance. That's a change that's ongoing. Nothing's overnight, even though I know everybody likes everything to be overnight, and it's not overnight. The higher quality people with the higher quality approaches and reaching more customers and selling more product and building better brands, that's where we sit. That's where our clients trust us. That's why they buy our products. As a result, we will get paid a very fair price for the efforts that we put in, because we've made these investments. I don't know if.

Speaker #4: And, and the higher quality people with a higher quality approaches and, and reaching more customers and selling more product. And building better brands. That's where we sit.

Speaker #4: That's where our clients trust us. That's why they buy our products. And as a result, we will get paid a very fair price for the efforts that we put in because we've made these investments.

Speaker #3: And increasingly we're moving towards performance. That's a change that's it's ongoing. Nothing's overnight, even though I know everybody likes everything to be overnight. It's not overnight.

Speaker #4: I don't know if.

Speaker #3: And, and the higher quality people with a higher quality approaches and reaching more customers and selling more product, and building better brands. That's where we sit.

Speaker #3: Yeah. In terms just to close out on the production question, relative to, you know, our 23 billion dollar annual base it's not it's just not a substantial component in terms of dollar value.

Speaker #3: That's where our clients trust us. That's why they buy our products. And as a result, we will get paid a very fair price for the efforts that we put in.

Speaker #3: the key to the portion of the business that's in integrated media is the intelligent content automation business which is closely integrated with media and our platform.

Speaker #3: Because we've made these investments. I don't know if.

Speaker #3: So that's what we were distinguishing at Investor Day.

Speaker #2: Yeah. In terms just to close out on the production question, relative to our 23 billion annual base, it's not it's just not a substantial component in terms of dollar value.

Philip Angelastro: Yeah. In terms, just to close out on the production question. Relative to, you know, our $23 billion annual base, it's not, it's just not a substantial component in terms of dollar value. The key to the portion of the business that is in integrated media is the intelligent content automation business, which is closely integrated with media and our platform. That's what we were distinguishing at Investor Day.

Speaker #5: Okay. That's all very, very helpful. Thanks. Thanks, you all.

Speaker #4: Sure.

Speaker #1: Your next question comes from the line of Michael and Nathanson with Moffat Nathanson. Please go ahead.

Speaker #2: Thanks. I have one for John and Paolo. Then one for Phil. John, I've got a date myself. I remember when Interpublic bought Axiom and I asked you about that strategy of buying Axiom.

Speaker #2: The key to the portion of the business that's in integrated media is the intelligent content automation business, which is closely integrated with media and our platform.

Speaker #2: And it wasn't the right time for you to buy it. Now is the second bullet point on the momentum of your company. So what have you found four months into owning Axiom?

Speaker #2: So that's what we were distinguishing at Investor Day.

Speaker #3: Okay. That's all very, very helpful. Thanks. Thanks, you all.

Speaker #2: How has integration helped you? And how does that give you an edge from maybe where the asset was used previously at IPG? And then for Phil on page 14, thanks for all the color.

Tim Nollen: Okay. That's all very, very helpful. Thanks. Thank you all.

Speaker #2: Sure.

Speaker #1: Your next question comes from the line of Michael Nathanson with MoffettNathanson. Please go ahead.

Philip Angelastro: Sure.

Operator: Your next question comes from the line of Michael Nathanson with MoffettNathanson. Please go ahead.

Speaker #2: But would you ever put out a four and pro forma operating expense details so we could actually build models that, you know, work in a pro forma basis on a core basis too on the cost side?

Speaker #3: Thanks. I have one for John and Paolo, then one for Phil. John, I've got a date myself. I remember when it's public bought Axiom and I asked you about that strategy of buying Axiom and it wasn't the right time for you to buy it.

Michael Nathanson: Thanks. I have one for John and Paolo, then one for Phil. John, I'm gonna date myself. I remember when Interpublic bought Acxiom, and I asked you about that strategy of buying Acxiom, and it wasn't the right time for you to buy it. Now is the second bullet point on the momentum of your company. What have you found four months into owning Acxiom? How has the integration helped you? And how does that, like, give you an edge from maybe where the asset was used previously at IPG? Then for Phil, on page 14, thanks for all the color, but would you ever put out a core and pro forma operating expense detail so we can actually build models that, you know, that work on a pro forma basis, on a core basis too, on the cost side? Thanks.

Speaker #2: Thanks.

Speaker #3: Now, as to the second bullet point on the momentum of our company. So, what have you found four months into owning Axiom? How has integration helped you?

Speaker #5: you know, I can't go back completely to 2018 and remember everything I was thinking. Although I'm accused of remembering every number that I say.

Speaker #3: And how does that give you an edge from maybe where the asset was used previously, like BG? And then for Phil, on page 14—thanks for all the color—but would you ever put out, or have you considered putting out, pro forma operating expense details so we could actually build models that work on a pro forma basis, on a core basis too, on the cost side?

Speaker #5: you know, at Axiom I think Interpublic at the time paid $2 million $2 billion for the company. You know, five years later I paid $9 billion for all of Interpublic.

Speaker #5: So I think my waiting paid off, you know, for my economic point of view. And but most importantly, is the and this was true then and it's certainly true now is the quality and the fidelity of the data that Axiom gathers has not changed in that five or seven year period.

Speaker #3: Thanks.

John Wren: You know, I can't go back completely to 2018 and remember everything I was thinking, although I'm accused of remembering every number that I see. You know, Acxiom, I think, Interpublic at the time paid $2 billion for the company. You know, five years later, I paid $9 billion for all of Interpublic. I think my waiting paid off, you know, from an economic point of view. Most importantly, and this was true then, and it's certainly truer now, is the quality and the fidelity of the data that Acxiom gathers has not changed in that five or seven-year period. They, because they work principally for regulated industries in the finance sector and the pharma sector, their data is not as haphazard as consumer data can be.

Speaker #2: Yeah. I can't go back completely to 2018 and remember everything I was thinking. Although I'm accused of remembering every number that I say. You know, at Axiom I think in the public at the time paid $2 million $2 billion.

Speaker #5: they because they've worked principally for regulated industries and finance sector and the pharma sector. Their data is not as haphazard as consumer data can be.

Speaker #2: For the company. You know, five years later I paid $9 billion for all of Interpublic. So I think my waiting paid off from my economic point of view.

Speaker #5: And it has to have fidelity because there's a lot of laws and regulations that go around it. And so we're able to ingest and use this to develop our Axiom customer ID methodology.

Speaker #2: And but most importantly, is the and this was true then and it's certainly true now. Is the quality and the fidelity of the data that Axiom gathers has not changed in that five or seven year period.

Speaker #5: And I'll let Paolo even comment a little bit on that. And it's been a real contributor. to our overall efforts. Now if I want to be really fair, we probably weren't ready for it in 2018.

Speaker #2: They, because they've worked principally for regulated industries and the finance sector and pharma sector. Their data is not as haphazard as consumer data can be.

Speaker #5: But we're certainly ready for it when we bought it now.

Speaker #2: And it has to have fidelity because there's a lot of laws and regulations that go around it. And so we're able to ingest and use this to develop our Axiom customer ID methodology and I'll let Paolo even comment a little bit on that.

John Wren: It has to have fidelity because there's a lot of laws and regulations that go around it. So we're able to ingest and use this to develop our Acxiom Real ID methodology, and I'll let Paolo even comment a little bit on that. It's been a real contributor to our overall efforts. Now, if I wanna be really fair, we probably weren't ready for it in 2018, but we're certainly ready for it when we bought it now.

Speaker #2: Yeah. I would add to that, Michael, that, you know, especially now with kind of the proliferation of artificial intelligence and more specifically generative AI and how we've incorporated it into almost every facet of the marketing life cycle.

Speaker #2: The ability for us to actually drive value from that data is greater now than it's ever been. And it is exponentially more powerful for our clients.

Speaker #2: And it's been a real contributor to our overall efforts. Now if I want to be really fair, we probably weren't ready for it in 2018, but we're certainly ready for it when we bought it now.

Speaker #5: So just on the specific question, that you asked, Michael, given the size of the acquisition, you know, not every number is scheduled related to the prior year data is perfectly comparable.

Speaker #3: Yeah. I would add to that, Michael, that you know, especially now with kind of the proliferation of artificial intelligence and more specifically generative AI and how we've incorporated it into almost every facet of the marketing life cycle.

Paolo Yuvienco: Yeah. I would add to that, Michael, that, you know, especially now with kind of the proliferation of artificial intelligence and more specifically generative AI and how we've incorporated it into almost every facet of the marketing life cycle, the ability for us to actually drive value from that data is greater now than it's ever been. It is exponentially more powerful for our clients.

Speaker #5: that's certainly we understand. And we're working towards that. we're happy to take any follow-up questions that you have on the detail. you know, certainly offline no problem.

Speaker #3: The ability for us to actually drive value from that data is greater now than it's ever been. And it is exponentially more powerful for our clients.

Speaker #4: Okay. Thanks, Phil. Thanks, guys.

Speaker #2: So just on the specific question, that you asked, Michael, given the size of the acquisition, not every number is scheduled related to the prior year data is perfectly comparable.

Speaker #5: Sure.

Philip Angelastro: Just on the specific question that you asked, Michael, given the size of the acquisition and not every number or schedule related to the prior year data is perfectly comparable, that certainly we understand and we're working towards that. We're happy to take any follow-up questions that you have on the detail, you know, certainly offline, no problem.

Speaker #1: Your next question comes from the line of Adrien Dissent, Heller with Bank of America. Please go ahead.

Speaker #6: Yes. Good evening from London. Thank you for taking the questions, please. Two of them. Do you have any better visibility on how much proceeds you think you're going to get from the planned disposals?

Speaker #2: That, certainly, we understand. And we're working towards that. We're happy to take any follow-up questions that you have on the detail—you know, certainly offline, no problem.

Speaker #6: I can see you've fetched 152 million dollars in Q1. But interested in your views for the year. And then maybe for John, in terms of new business, one of your peers seems to have a bit of a revival of late.

Speaker #3: Okay. Thanks, Phil. Thanks, guys.

John Wren: Okay. Thanks, Phil. Thanks, guys.

Speaker #2: Sure.

Philip Angelastro: Sure.

Speaker #1: Your next question comes from the line of Adrian DeSant-Helaire with Bank of America. Please go ahead.

Speaker #6: I'm just wondering if you're seeing a bit of a change in the pricing dynamics. Are you seeing potentially any pricing pressure around those pictures?

Operator: Your next question comes from the line of Adrien de Saint Hilaire with Bank of America. Please go ahead.

Speaker #4: Yes. Good evening from London. Thank you for taking the questions, please. Two of them. Do you have any better visibility on how much proceeds you think you're going to get from the planned disposals?

Speaker #6: More so than usual, I understand there's always a bit of price pressure around those. Thank you very much.

Adrien de Saint Hilaire: Yes. Good evening from London. Thank you for taking the questions, please. Two of them. Do you have any better visibility on how much proceeds you think you're gonna get from the planned disposals? I can see you've fetched $152 million in Q1, but interested in your views for the year. Then maybe for John, in terms of new business, one of your peers seems to have a bit of a revival of late. I'm just wondering if you're seeing a bit of a change in the pricing dynamics. Are you seeing potentially any pricing pressure around those pitches more so than usual? I understand there's always a bit of price pressure around those. Thank you very much.

Speaker #4: Sure. you know, with respect to your first question, we stated for me, please, Adrien, just so I answer it properly. Hello?

Speaker #4: I can see you've fetched $152 million in Q1, but I'm interested in your views for the year. And then maybe for John, in terms of new business, one of your peers seems to have had a bit of a revival of late.

Speaker #4: I'm just wondering if you're seeing a bit of a change in the pricing dynamics. Are you seeing potentially any pricing pressure around those pictures?

Speaker #3: I think it's visibility on the pros.

Speaker #4: Yeah. On the pros, yeah, yeah. No, no. Yeah. As you saw, you know, if you looked at our cash flow statements, there was money made on the sale of.

Speaker #4: More so than usual, I understand there's always a bit of price pressure around those. Thank you very much.

Speaker #2: Sure. You know, with respect to your first question, we stated for me, please, Adrian, just so I answer it properly. Hello?

John Wren: Sure. You know, with respect to your first question, restate it for me, please, Adrien, just so I answer it properly. Hello?

Speaker #3: Principally Jack Morton.

Speaker #4: Principally Jack Morton. And there's a number of companies that, you know, we expect to receive proceeds from the sale of significant a number of those units that were holding in that bucket.

Speaker #5: I think it's visibility on the pros.

Philip Angelastro: I think it's visibility on the proceeds.

Speaker #2: Yeah. On the pros, yeah, yeah. No, no. Yeah. As you saw, you know, if you looked at our cash flows, there is those money made on the sale of.

John Wren: Yeah. I would.

Speaker #4: There's some that are just disposables, just things that we have to go through the process because they are barely low growth. They've been around for a long time.

Adrien de Saint Hilaire: On the pricing side, John. Yes.

John Wren: On the pricing. Yeah, yeah. No, no. Yeah. As you saw, you know, if you looked at our cash flow statements, there was money made on the sale of.

Speaker #4: But they happen to be in some instances in countries where the exercise of going through and shutting them down or paying out the proper severance and things that people cost us money.

Philip Angelastro: Principally Jack Morton. Yeah.

Speaker #2: Yeah. Principally, Jack Morgan. And there's a number of companies that, you know, we expect to receive proceeds from the sale of significant a number of those units that were holding in that bucket.

John Wren: Principally Jack Morton. There's a number of companies that, you know, we expect to receive proceeds from the sale of significant number of those units that we're holding in that bucket. There's some that are just disposables. They're just things that we have to go through the process because they are very low growth. They've been around for a long time, they happen to be, in some instances, in countries where the exercise of going through and shutting them down or paying out the proper severance and, you know, things for people costs us money. We've accrued for the downside as best we could, we're looking to sell and generate positive cash flow. I don't think it's gonna add to net income for the year so much as it is it will generate additional cash.

Speaker #4: We've accrued for the downside as best we could. And so we're looking to sell and generate positive cash flow. But I don't think it's going to add to our net income for the year so much as it is it will generate additional cash.

Speaker #2: There's some that are just disposables, just things that we have to go through the process because they are barely low growth. They've been around for a long time.

Speaker #2: But they happen to be in some instances in countries where the exercise of going through and shutting them down or paying out the proper severance and things to people cost us money.

Speaker #3: Certainly we have an expectation. But it's really very difficult to estimate what those proceeds are going to be. And we certainly don't want to give you any inaccurate expectations regarding what they're going to be.

Speaker #2: We've accrued for the downside as best we could. And so we're looking to sell and generate positive cash flow. But I don't think it's going to add to net income for the year so much as it is it will generate additional cash.

Speaker #3: And, you know, when those deals happen and proceeds come in, we're certainly going to keep you updated and let you know.

Speaker #4: Yeah. And Adrien, after listening to me for years, I said earlier to our question, I'd love to see these things off of my P&L and not talk about them anymore.

Speaker #5: Certainly, we have an expectation, but it's really very difficult to estimate what those proceeds are going to be. And we certainly don't want to give you any inaccurate expectations regarding what they're going to be.

Philip Angelastro: Certainly, we have an expectation, but it's really very difficult to estimate what those proceeds are gonna be. We certainly don't wanna give you any inaccurate expectations regarding what they're gonna be. You know, when those deals happen and the proceeds come in, we're certainly gonna keep you updated and let you know.

Speaker #4: But that's not going to make me give them away either. So we're pretty confident that over the next several quarters, we can get through to most of them.

Speaker #4: And we have teams doing this and outsiders. We're focused on new business and growing our business. And getting the teams that we brought together functioning in a proper way.

Speaker #5: And you know, when those deals happen and proceeds come in, we're certainly going to keep you updated and let you know.

Speaker #2: Yeah. And Adrian, yeah, I have to listen in to me for years. I said earlier to our question, I'd love to see these things off of my P&L and not talk about them anymore.

John Wren: Adrien, you know, after listening to me for years, as I said earlier to our question, I'd love to see these things off of my P&L and not talk about them anymore, that's not gonna make me give them away either. We're pretty confident that over the next several quarters, we can get through most of them. We have teams doing this and outsiders. We're focused on new business and growing our business and getting the teams that we brought together functioning in a proper way. That's why we even call them core assets. That's where most of our focus is. There's a bunch of accountants running around trying to sell these things. There was a second question?

Speaker #4: So that's why we even call them core assets. That's where most of our focus is. There's a bunch of accountants running around trying to sell these things.

Speaker #2: But that's not going to make me give them away either. So we're pretty confident that, over the next several quarters, we can get through to most of them.

Speaker #4: And there was a second question?

Speaker #6: Yes. It's on the new business environment.

Speaker #4: Oh, competitive pricing. Yeah. Yeah. Yeah. And I certainly know the ones you're talking about. There's been two or three. Everyone strikes me as if I've just been defeated because I hate losing.

Speaker #2: And we have teams doing this and outsiders. We're focused on new business and growing our business and getting the teams that we brought together functioning in a proper way.

Speaker #2: So that's why we even call them core assets. That's where most of our focus is. There's a bunch of accountants running around trying to sell these things.

Speaker #4: And some of it has to do with competitive pricing. But we win more than our fair share. And we'll continue to win more than our fair share.

Speaker #4: And every loss there's no such thing as coming in second. Believe me, I do a root cause analysis of why we lost it to try to cure for the next opportunity that we have.

Speaker #2: And there was a second question.

Speaker #4: Yes. It's on the new business environment. Pitching environment.

Adrien de Saint Hilaire: Yes. It's on the new business environment.

John Wren: Oh, competitive pricing.

Adrien de Saint Hilaire: Pitching environment.

Speaker #2: Yeah. Yeah. You know, and I certainly know the ones you're talking about. There's been two or three. Everyone strikes me as if I've just been defeated because I hate losing.

John Wren: Yeah, yeah.

Adrien de Saint Hilaire: Yes.

John Wren: You know, there's been two or three. As I certainly know the ones you're talking about. Every one strikes me as if I've just been defeated because I hate losing. Some of it has to do with competitive pricing. We win more than our fair share, and we'll continue to win more than our fair share. Every loss, there's no such thing as coming in second. Believe me, I do a root cause analysis of why we lost it to try to cure for the next opportunity that we have. Yes, we lost, but not much, and I'm not happy about it.

Speaker #4: So yes, we lost. But not much. And I'm not happy about it.

Speaker #2: And some of it had to do with competitive pricing. But we win more than our fair share. And we'll continue to win more than our fair share.

Speaker #6: Understood. Thank you so much, guys.

Speaker #3: Thank you.

Speaker #2: And every loss there's no such thing as coming in second. Believe me, I do a root cause analysis of why we lost it to try to cure for the next opportunity that we have.

Speaker #2: So yes, we lost, but not much. And I'm not happy about it.

Speaker #4: Understood. Thank you so much, guys.

Adrien de Saint Hilaire: Understood. Thank you so much, guys.

Speaker #5: Thank you.

Paolo Yuvienco: Thank you.

Speaker #1: In that concludes our question and answer session. And that does conclude today's call. Thank you all for your participation. And you may now disconnect.

Operator: That concludes our question and answer session, and that does conclude today's call. Thank you all for your participation, and you may now disconnect.

Q1 2026 Omnicom Group Inc Earnings Call

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