Q2 2026 Omnicom Group Inc Earnings Call

July 28, 2026

Speaker #1: Ladies and gentlemen, thank you for joining us, and welcome to the Omnicom's second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question-and-answer session.

Operator: Ladies and gentlemen, thank you for joining us and welcome to the Omnicom Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Greg Lundberg, Investor Relations. Greg, please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Greg Lundberg, investor relations.

Speaker #1: Greg, please go ahead.

Speaker #1: Ladies and gentlemen, thank you for joining us, and welcome to Omnicom's second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question-and-answer session.

Speaker #2: Thank you for joining our second quarter 2026 earnings call. With me today are John Wren, chairman and chief executive officer; and Phil Angelostro, executive vice president and chief financial officer.

Greg Lundberg: Thank you for joining our Q2 2026 earnings call. With me today are John Wren, Chairman and Chief Executive Officer, and Phil Angelastro, Executive Vice President and Chief Financial Officer. On our website, omnicomgroup.com, you will find a press release and a presentation covering the information we will review today. An archived webcast will be available when today's call concludes. Before we start, I would like to remind everyone to read the forward-looking statements and non-GAAP financial and other information that we have included at the end of our investor presentation. 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. During the course of today's call, we will also discuss certain non-GAAP measures.

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 would 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 #1: Greg, please go ahead.

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

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.

Greg Lundberg: You can find the reconciliation of these to the nearest comparable GAAP measures in the presentation materials. 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. I will now hand the call over to John.

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. Good afternoon, everyone. And thank you for joining us today. I'm pleased to share our second quarter results. Starting with revenue from core operations, which comprises our ongoing operations and exclusive assets held for sale and planned disposition, we achieved organic growth of 6.1% in the second quarter.

John Wren: Thank you, Greg. Good afternoon, everyone, and thank you for joining us today. I am pleased to share our Q2 results. Starting with revenue from core operations, which comprises our ongoing operations and excludes assets held for sale and planned disposition, we achieved organic growth of 6.1% in Q2. These strong results were driven by our integrated media and experiential disciplines. Ongoing or core operations adjusted EBITDA growth was 20.4% and EBITDA margin increased by almost 200 basis points to 17.8% as compared to the combined operations in Q2 2025. Our non-GAAP adjusted EPS in the quarter, which excludes after-tax costs from severance and repositioning actions, acquisition and integration expenses, as well as amortization of acquired intangible assets, was $2.65 per share, an increase of 29.3% versus the prior year.

Speaker #3: These strong results were driven by our integrated media and experiential disciplines. Ongoing or core operations adjusted EBITDA growth was 20.4%, and EBITDA margin increased by almost 200 basis points to 17.8% as compared to the combined operations in the second quarter of 2025.

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. Good afternoon, everyone, and thank you for joining us today. I'm pleased to share our second quarter results. Starting with revenue from core operations—which comprises our ongoing operations and excludes assets held for sale and planned disposition—we achieved organic growth of 6.1% in the second quarter.

Speaker #3: Our non-GAAP adjusted EPS in the quarter, which excludes after-tax costs from severance and repositioning actions, acquisition and integration expenses, as well as amortization of acquired intangible assets, was $2.65 per share and increased of 29.3% versus the prior year.

Speaker #3: These strong results were driven by our integrated media and experience disciplines. Ongoing, or core, operations adjusted EBITDA growth was 20.4%, and EBITDA margin increased by almost 200 basis points to 17.8%, as compared to the combined operations in the second quarter of 2025.

Speaker #3: We also continued to be on track to successfully achieve the initiatives we communicated on our prior calls, including $900 million in 2026 cost reduction synergies and $1.5 billion by mid-2028.

John Wren: We also continue to be on track to successfully achieve the initiatives we communicated on our prior calls, including $900 million in 2026 cost reduction synergies and $1.5 billion by mid-2028. In compliance with our board authorization, we're executing our plan to repurchase $5 billion in shares. To date, we have completed $3 billion in share repurchases, and we expect to complete approximately $500 million of additional repurchases during 2026, with the remainder completed by the end of Q1 2027. Through July, we've completed a significant number of our planned dispositions. For the H2 of the year, dispositions remaining to be completed will generate approximately $525 million in revenue. Results from ongoing operations in Q2 and through H1 2026 demonstrate the momentum the new Omnicom has quickly gained from the combination with Interpublic.

Speaker #3: In compliance with our board authorization, we're executing our plan to repurchase $5 billion in shares, to date we've completed $3 billion in share repurchases, and we expect to complete approximately $500 million of additional repurchases during 2026, with the remainder completed by the end of the first quarter of 2027.

Speaker #3: We also continued to be on track to successfully achieve the initiatives we communicated on our prior calls, including $900 million in 2026 cost-reduction synergies and $1.5 billion by mid-2028.

Speaker #3: Through July, we've completed a significant number of our planned dispositions. For the second half of the year, dispositions remaining to be completed will generate approximately $525 million in revenue.

Speaker #3: In compliance with our board authorization, we're executing our plan to repurchase $5 billion in shares. To date, we've completed $3 billion in share repurchases, and we expect to complete approximately $500 million of additional repurchases during 2026, with the remainder completed by the end of the first quarter 2027.

Speaker #3: Results from ongoing operations in the second quarter and through the first half of 2026 demonstrate the momentum the new Omnicom has quickly gained from the combination with Interpublic.

Speaker #3: Over the past 8 months, we've moved beyond combining our two companies to building the leading connected marketing and sales company for a fundamentally new era of marketing.

John Wren: Over the past eight months, we've moved beyond combining our two companies to building the leading connected marketing and sales company for a fundamentally new era of marketing. The new Omnicom is an integrated operating company, bringing together the industry's leading talent and capabilities across creativity, media, commerce, consulting, data, and technology. We've aligned leadership teams, connected our capabilities across the enterprise, and unified our data and AI assets through Omnicom. This gives clients easier access to the full strength of Omnicom and allows us to deliver smarter decisions, faster execution, and better business outcomes. The result is a more agile and connected organization, one that is better equipped to help our clients grow, transform, and compete in a rapidly changing world. Looking ahead, our focus will be on three areas where we see the greatest opportunities for our clients and us. First is agentic marketing transformation.

Speaker #3: The new Omnicom is an integrated operating company bringing together the industry's leading talent and capabilities across creativity, media, commerce, consulting, data and technology. We will align leadership teams connected to our capabilities across the enterprise and unified our data and AI assets through Omni.

Speaker #3: This gives clients easier access to the full strength of Omnicom and allows us to deliver smarter decisions faster execution and better business outcomes. The result is a more agile and connected organization one that is better equipped to help our clients grow, transform, and compete in a rapidly changing world.

Speaker #3: Over the past eight months, we've moved beyond combining our two companies to building the leading connected marketing and sales company for a fundamentally new era of marketing.

Speaker #3: The new Omnicom is an integrated operating company, bringing together the industry's leading talent and capabilities across creativity, media, commerce, consulting, data, and technology. We will align leadership teams, connect our capabilities across the enterprise, and unify our data and AI assets through Omni.

Speaker #3: Looking ahead, our focus will be on three areas where we see the greatest opportunities for our clients and us. First is agentic marketing transformation.

Speaker #3: We have differentiated assets that help us excel in this area, and come we demonstrated how Omni's agentic layer can be used for our clients to enable agent creation, activation, and orchestration, across workflows, channels, and customer experiences.

John Wren: We have differentiated assets that help us excel in this area. In Cannes, we demonstrated how Omnicom's agentic layer can be used for our clients to enable agent creation, activation, and orchestration across workflows, channels, and customer experiences. This is further enhanced by Omnicom's foundational data and identity layer powered by Acxiom. Through Omni's agentic and data capabilities, we can achieve significantly better audience and activation strategies and more precise cross-channel measurement. In addition, our marketing transformation consultancy and partnerships with leading technology companies will play a significant part in modernizing our clients' enterprise infrastructure for agentic marketing and connecting it with Omni to further optimize these results. Our assets and capabilities create a unified, intelligent layer that is the foundation for true agentic marketing. The second major opportunity is the new consumer engagement model.

Speaker #3: This gives clients easier access to the full strength of Omnicom and allows us to deliver smarter decisions, faster execution, and better business outcomes. The result is a more agile and connected organization—one that is better equipped to help our clients grow, transform, and compete in a rapidly changing world.

Speaker #3: This is further enhanced by Omni's foundational data and identity layer powered by Axiom. Through Omni's agentic and data capabilities, we can achieve significantly better audience and activation strategies and more precise cross-channel measurement.

Speaker #3: Looking ahead, our focus will be on three areas where we see the greatest opportunities for our clients and us. First is agentic marketing transformation.

Speaker #3: In addition, our marketing transformation consultancy and partnerships with leading technology companies will play a significant part in modernizing our clients' enterprise infrastructure for agentic marketing and connecting it with Omni to further optimize these results.

Speaker #3: We have differentiated assets that help us excel in this area. In Kang, we demonstrated how Omni's agentic layer can be used for our clients to enable agent creation, activation, and orchestration across workflows, channels, and customer experiences.

Speaker #3: Our assets and capabilities create a unified, intelligent layer that is the foundation for true agentic marketing. The second major opportunity is the new consumer engagement model.

Speaker #3: Brands are focusing investment where they can build deeper and more direct relationships with their customers. This includes sports and entertainment, social and creator, connected commerce, and AI-driven discovery.

John Wren: Brands are focusing investment where they can build deeper and more direct relationships with their customers. This includes sports and entertainment, social and creator, connected commerce, and AI-driven discovery. The combination of Omnicom and Interpublic has enabled us to integrate solutions that operate at scale and are being deployed for our clients. Sports exemplifies this combined strength. Omnicom influences $9.9 billion in sponsorships, oversees one in every three sports media dollars, maintains more than 500 league and platform partnerships, and has visibility into 20,000-plus sporting events each year. Our client relationships and new business opportunities continue to grow across each of these areas. The third area of opportunity is expanding our client partnerships and attracting new clients. Our integrated client leaders are focused on deepening our relationships, identifying white spaces, and actively expanding the services we provide by bringing more of Omnicom's capability to each client.

Speaker #3: The combination of Omnicom and Interpublic as enabled us to integrate solutions that operate at scale and are being deployed for our clients. Sports exemplifies this combined strength.

Speaker #3: Our assets and capabilities create a unified, intelligent layer that is the foundation for true agentic marketing. The second major opportunity is the new consumer engagement model.

Speaker #3: Omnicom influences 9.9 billion in sponsorships overseas 1 in every 3 sports media dollars, maintains more than 500 league and platform partnerships, and has visibility into 20,000-plus sporting events each year.

Speaker #3: Our client relationships and new business opportunities continue to grow across each of these areas. The third area of opportunity is expanding our client partnerships and attracting new clients.

Speaker #3: The combination of Omnicom and Interpublic has enabled us to integrate solutions that operate at scale and are being deployed for our clients. Sports exemplifies this combined strength.

Speaker #3: Our integrated client leaders are focused on deepening our relationships identifying white spaces and actively expanding the services we provide by bringing more of Omnicom's capability to each client.

Speaker #3: Omnicom influences $9.9 billion in sponsorships overseas, one in every three sports media dollars, maintains more than 500 league and platform partnerships, and has visibility into 20,000 plus sporting events each year.

Speaker #3: At the same time, our newly formed growth team is aggressively pursuing net new clients by leveraging Omnicom's connected offerings and new consumer engagement model.

John Wren: At the same time, our newly formed growth team is aggressively pursuing net new clients by leveraging Omnicom's connected offerings and new consumer engagement model. These efforts have already delivered meaningful results. Within the quarter, many of our wins came from expanding existing relationships. We added services in high-demand areas such as sports, media, production, commerce, social, and influencer for clients like American Express, General Mills, and Uber. These extensions demonstrate the value of true connectivity. During the quarter, we also secured new integrated media wins with Adidas, IBM, and Subway. This success clearly indicates that clients recognize the value we've created at the new Omnicom. It is reinforced by our high post-acquisition client retention rates and our recognition as the most effective company in the global Effie Index. None of these achievements would be possible without the outstanding people across our company.

Speaker #3: Our client relationships and new business opportunities continue to grow across each of these areas. The third area of opportunity is attracting new clients.

Speaker #3: These efforts have already delivered meaningful results. Within the quarter, many of our wins came from expanding existing relationships. We added services in high-demand areas such as sports, media, production, commerce, social and influencer, the clients like American Express, General Mills, and Uber.

Speaker #3: Our integrated client leaders are focused on deepening our relationships, identifying white spaces, and actively expanding the services we provide by bringing more of Omnicom's capability to each client.

Speaker #3: These extensions demonstrate the value of true connectivity. During the quarter, we also secured new integrated media wins with Adidas, IBM, and Subway. This success clearly indicates that clients recognize the value we've created at the new Omnicom.

Speaker #3: At the same time, our newly formed growth team is aggressively pursuing net new clients by leveraging Omnicom's connected offerings and new consumer engagement model.

Speaker #3: These efforts have already delivered meaningful results. Within the quarter, many of our wins came from expanding existing relationships. We added services in high-demand areas such as sports, media, production, commerce, social, and influencer for clients like American Express, General Mills, and Uber.

Speaker #3: It is reinforced by our high post-acquisition client retention rates and our recognition as the most effective company in the global FE index. None of these achievements would be possible without the outstanding people across our company.

Speaker #3: We brought together exceptional talent from both Omnicom and Interpublic and created something even stronger. I want to thank everyone for their commitment and contributions over the past several months.

John Wren: We brought together exceptional talent from both Omnicom and Interpublic and created something even stronger. I want to thank everyone for their commitment and contributions over the past several months. Overall, we're very pleased with our performance in Q2 and the H1 of the year. We remain optimistic and confident about the remainder of 2026. Given our H1 performance, we're raising our full year guidance for 2026 organic revenue growth from ongoing operations from 4% to 4.5% to 5%. Phil will now provide more color on our financial performance and updated guidance. Phil?

Speaker #3: Overall, we're very pleased with our performance in the second quarter and the first half of the year. We remain optimistic and confident about the remainder of 2026.

Speaker #3: This is reinforced by our high post-acquisition client retention rates and our recognition as the most effective company in the global FE Index. None of these achievements would be possible without the outstanding people across our company.

Speaker #3: Given our first half performance, we're raising our full-year guidance for 2026 organic revenue growth from ongoing operations from 4% to 4.5 to 5%. Still, we'll now provide more color on our financial performance and updated guidance.

Speaker #3: We brought together exceptional talent from both Omnicom and Interpublic, and created something even stronger. I want to thank everyone for their commitment and contributions over the past several months.

Speaker #3: Still?

Speaker #2: Thanks, John. I will start on slide 3, which presents what we call our core operations. With consists of our ongoing operating businesses, excluding dispositions that we have completed, and assets held for sale, that have not yet been disposed.

Phil Angelastro: Thanks, John. I will start on slide three, which presents what we call our core operations, which consists of our ongoing operating businesses, excluding dispositions that we have completed and asset sales for sale that have not yet been disposed. Our plan is to complete the disposal of the businesses included in the dispositions and held for sale category by the end of 2026. This slide also presents operating income and EBITDA on a non-GAAP adjusted basis, excluding severance and repositioning costs and acquisition integration costs. For comparison purposes on this slide, we've included 2025 prior year combined amounts prepared on a similar basis to 2026. As we've previously discussed, 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 #3: Overall, we're very pleased with our performance in the second quarter and the first half of the year. We remain optimistic and confident about the remainder of 2026.

Speaker #2: Our plan is to complete the disposal of the businesses included in the dispositions and held for sale category, by the end of 2026. This slide also presents operating income and EBITDA on a non-gap adjusted basis, excluding severance and repositioning costs, and acquisition integration costs.

Speaker #3: Given our first-half performance, we're raising our full-year guidance for 2026 organic revenue growth from ongoing operations from 4% to a range of 4.5% to 5%. Bill will now provide more color on our financial performance and updated guidance.

Speaker #3: Bill?

Speaker #2: For comparison purposes on this slide, we've included 2025 prior year combined amounts prepared on a similar basis to 2026. As we previously discussed, 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: Thanks, John. I will start on slide three, which presents what we call our core operations. This consists of our ongoing operating businesses, excluding dispositions that we have completed and assets held for sale that have not yet been disposed of.

Speaker #2: Our plan is to complete the disposal of the businesses included in the dispositions and held-for-sale category by the end of 2026. This slide also presents operating income and EBITDA on a non-GAAP adjusted basis, excluding severance and repositioning costs and acquisition integration costs.

Speaker #2: This slide presents the contribution of our core operations to our consolidated results in the second quarter of 2026 and 2025 for revenue, adjusted operating income, and adjusted EBITDA.

Phil Angelastro: This slide presents the contribution of our core operations to our consolidated results in Q2 of 2026 and 2025 for revenue, adjusted operating income, and adjusted EBITDA. Core operations represented 91.4% of our revenue and 95% of our adjusted EBITDA in Q2 of 2026. Core operations revenue grew 7.2% in total. Adjusted EBITDA grew $181.4 million, or 20.4%, and the related adjusted EBITDA margin increased 17.8% from 15.9%, primarily driven by cost reduction synergies. We are pleased with this strong performance for both revenue and adjusted EBITDA, and we are on track to achieve our cost reduction synergy targets for the year. Moving to year-to-date results on slide four, core operations revenue grew $754.1 million, or 6.9% in total. Adjusted EBITDA grew 23.5%, and related adjusted EBITDA margin increased to 16.4% from 14.2%. Again, primarily driven by cost reduction synergies.

Speaker #2: For comparison purposes on this slide, we've included 2025 prior-year combined amounts prepared on a similar basis to 2026. As we previously discussed, 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: Core operations represented 91.4% of our revenue, and 95% of our adjusted EBITDA in the second quarter of 2026. Core operations revenue grew 7.2% in total.

Speaker #2: Adjusted EBITDA grew 181.4 million or 20.4%. And the related adjusted EBITDA margin increased 17.8% from 15.9%. Primarily driven by cost reduction synergies. We're re pleased with this strong performance for both revenue and adjusted EBITDA.

Speaker #2: And we are on track to achieve our cost reduction synergy targets for the year. Moving to year-to-date results on slide 4, core operations revenue grew 754.1 million or 6.9% in total.

Speaker #2: Core operations represented 91.4% of our revenue and 95% of our adjusted EBITDA in the second quarter of 2026. Core operations revenue grew 7.2% in total.

Speaker #2: Adjusted EBITDA grew 23.5%. And related adjusted EBITDA margin increased to 16.4% from 14.2%. Again, primarily driven by cost reduction synergies. Turning to slide 5, we present our second quarter consolidated reported results as well as the related non-gap adjusted amounts.

Speaker #2: Adjusted EBITDA grew $181.4 million, or 20.4%, and the related adjusted EBITDA margin increased to 17.8% from 15.9%, primarily driven by cost reduction synergies. We're pleased with this strong performance for both revenue and adjusted EBITDA.

Phil Angelastro: Turning to slide five, we present our Q2 consolidated reported results, as well as the related non-GAAP adjusted amounts, which include all entities. Core operations, dispositions that were completed during the quarter for the period they were part of Omnicom, and entities that are classified as held for sale. Also, because these are reported results, the 2025 presentation reflects the prior results of Omnicom only and does not include Interpublic. Center columns for each period show the applicable non-GAAP adjustments. In Q2 of 2026, integration-related costs were $40.1 million, which were recorded on the SG&A expense line, and severance and repositioning costs were $47 million. Below operating income, net interest expense increased to $93 million from $41 million in 2025, due primarily to the assumption of Interpublic's debt of approximately $3 billion.

Speaker #2: And we are on track to achieve our cost year. Moving to year-to-date results on slide four, core operations revenue grew $754.1 million, or 6.9% in total.

Speaker #2: Which include all entities, core operations, dispositions that were completed during the quarter for the period they were part of Omnicom, and entities that are classified as held for sale.

Speaker #2: Also, because these are reported results, the 2025 presentation reflects the prior year results of Omnicom only and does not include Interpublic. Center columns for each period show the applicable non-gap adjustments.

Speaker #2: Adjusted EBITDA grew 23.5%, and related adjusted EBITDA margin increased to 16.4% from 14.2%. Again, this was primarily driven by cost reduction synergies. Turning to slide five, we present our second quarter consolidated reported results as well as the related non-GAAP adjusted amounts, which include all entities.

Speaker #2: In the second quarter of 2026, integration-related costs were 40.1 million. Which were recorded on the SG&A expense line. And severance and repositioning costs were 47 million.

Speaker #2: Core operations dispositions that were completed during the quarter for the period they were part of Omnicom, and entities that are classified as held for sale.

Speaker #2: Below operating income, net interest expense increased to 93 million dollars from 41 million in 2025 due primarily to the assumption of Interpublic's debt of approximately 3 billion dollars.

Speaker #2: Also, because these are reported results, the 2025 presentation reflects the prior year results of Omnicom only and does not include Interpublic. The center columns for each period show the applicable non-GAAP adjustments.

Speaker #2: Interest expense increased by 61 million primarily due to the Interpublic acquisition, including 3 million of non-cash interest, as well as interest expense resulting from refinancing activity completed during the first quarter of 2026, which resulted in approximately 1 billion of incremental long-term debt.

Phil Angelastro: Interest expense increased by $61 million, primarily due to the Interpublic acquisition, including $3 million of non-cash interest, as well as interest expense resulting from refinancing activity completed during Q1 of 2026, which resulted in approximately $1 billion of incremental long-term debt and some incremental interest expense from CP borrowings during the quarter. Interest income increased by $8 million to $30 million, primarily due to higher average cash balances. Depreciation expense in the quarter was $49 million, and amortization expense was $118 million. Both increased year-over-year, primarily due to the Interpublic acquisition. Both, we estimate that amounts in Q3 and Q4 of 2026 will approximate Q2 actuals. Our adjusted tax rate is 26%, was down slightly from 26.5% in 2025. 2026, we estimate our annual tax rate to also be 26.0%. Our non-GAAP adjusted net income increased $344.1 million to $745.2 million.

Speaker #2: In the second quarter of 2026, integration-related costs were $40.1 million, which are recorded on the SG&A expense line. Severance and repositioning costs were $47 million.

Speaker #2: And some incremental interest expense from CP borrowings during the quarter. Interest income increased by 8 million dollars to 30 million dollars primarily due to higher average cash balances.

Speaker #2: Below operating income, net interest expense increased to $93 million from $41 million in 2025, due primarily to the assumption of Interpublic's debt of approximately $3 billion.

Speaker #2: Depreciation expense in the quarter was 49 million and amortization expense was 118 million. Both increased year-over-year primarily due to the Interpublic acquisition. For both, we estimate that amounts in Q3 and Q4 of 2026 will approximate Q2 actuals.

Speaker #2: Interest expense increased by $61 million, primarily due to the Interpublic acquisition, including $3 million of non-cash interest, as well as interest expense resulting from refinancing activity completed during the first quarter of 2026, which resulted in approximately $1 billion of incremental long-term debt, and some incremental interest expense from CP borrowings during the quarter.

Speaker #2: Our adjusted tax rate of 26% was down slightly from 26.5% in 2025. 2026, we estimate our annual tax rate to also be 26.0%. Our non-gap adjusted net income increased 344.1 million dollars to 745.2 million.

Speaker #2: Interest income increased by $8 million to $30 million, primarily due to higher average cash balances. Depreciation expense in the quarter was $49 million, and amortization expense was $118 million.

Speaker #2: Finally, non-gap adjusted diluted EPS grew 29.3% to $2.65 from $2.05 last year. Driven by an increase in related net income. Our fully diluted weighted average shares outstanding for the second quarter was 281 million, down 10% from 313.1 million shares outstanding at year-end 12:31:25.

Phil Angelastro: Finally, non-GAAP adjusted diluted EPS grew 29.3% to $2.65 from $2.05 last year, driven by an increase in related net income. Our fully diluted weighted average shares outstanding for Q2 was 281 million, down 10% from 313.1 million shares outstanding at year-end 31 December 2025. On a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition, partially offset by share repurchase activity, which I will discuss in a moment. Now let's review revenue drivers in more detail, beginning with the components of our revenue change on slide seven. To assist in understanding the drivers of our underlying business, this analysis focuses on growth from our core operations, exclusive of businesses that have been disposed of or are expected to be disposed of.

Speaker #2: Both increased year-over-year, primarily due to the Interpublic acquisition. For both, we estimate that amounts in Q3 and Q4 of 2026 will approximate Q2 actuals.

Speaker #2: Our adjusted tax rate of 26% was down slightly from 26.5% in 2025. For 2026, we estimate our annual tax rate to also be 26.0%. Our non-GAAP adjusted net income increased $344.1 million to $745.2 million.

Speaker #2: On a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition, partially offset by share purchase activity which I will discuss in a moment.

Speaker #2: Finally, non-GAAP adjusted diluted EPS grew 29.3% to $2.65 from $2.05 last year, driven by an increase in related net income. Our fully diluted weighted average shares outstanding for the second quarter was 281 million, down 10% from 313.1 million shares outstanding at year-end, December 31, 2025.

Speaker #2: Now let's review revenue drivers in more detail. Beginning with the components of our revenue change, on slide 7. To assist in understanding the drivers that are underlying business, this analysis focuses on growth from our core operations exclusive of businesses that have been disposed of or are expected to be disposed of.

Speaker #2: Organic revenue growth in the quarter was 6.1%. And the impact from foreign exchange translations was positive 1.1%. Along with a nominal impact from a small acquisition.

Phil Angelastro: Organic revenue growth in the quarter was 6.1%, and the impact from foreign exchange translations was positive 1.1%, along with a nominal impact from a small acquisition. In total, revenue from core operations was $6 billion. Year-to-date organic revenue growth as of 30 June was 5%. During the quarter and through the end of July, we've completed more than half of the planned disposals included in our dispositions and held for sale category. We expect to complete the remaining dispositions in Q3 and Q4 of 2026, and we estimate the revenue related to those businesses will approximate $300 million in Q3 and $225 million in Q4, with EBITDA margins of approximately 10%. Through 30 June 2026, we received proceeds from assets sold of $168 million, and we expect additional proceeds from sales completed in July in excess of $200 million.

Speaker #2: On a year-over-year basis, our share count increased from last year due to shares issued for the Interpublic acquisition, partially offset by share repurchase activity, which I will discuss in a moment.

Speaker #2: In total, revenue from core operations was 6 billion dollars. Year-to-date, organic revenue growth as of June 30th was 5%. During the quarter and through the end of July, we've completed more than half of the planned disposals included in our dispositions and held for sale category.

Speaker #2: Now, let's review revenue drivers in more detail, beginning with the components of our revenue change on slide seven. To assist in understanding the drivers underlying our business, this analysis focuses on growth from our core operations, exclusive of businesses that have been disposed of or are expected to be disposed of.

Speaker #2: We expect to complete the remaining dispositions in Q3 and Q4 of 2026. And we estimate the revenue related to those businesses will approximate 300 million in Q3 and 225 million in Q4, with EBITDA margins of approximately 10%.

Speaker #2: Organic revenue growth in the quarter was 6.1%, and the impact from foreign exchange translations was a positive 1.1%, along with a nominal impact from a small acquisition.

Speaker #2: Through June 30th, 2026, we received proceeds from assets sold of 168 million and we expect additional proceeds from sales completed in July in excess of 200 million.

Speaker #2: In total, revenue from core operations was $6 billion. Year-to-date, organic revenue growth as of June 30th was 5%. During the quarter, and through the end of July, we've completed more than half of the planned disposals included in our dispositions and held for sale category.

Speaker #2: Assuming recent FX rates stay the same, we estimate FX will decrease our reported revenue for Q3 by 1% and be flat for Q4, resulting in an expected benefit for the year of approximately 1%.

Phil Angelastro: Assuming recent FX rates stay the same, we estimate FX will decrease our reported revenue for Q3 by 1% and be flat for Q4, resulting in an expected benefit for the year of approximately 1%. Turning to slide eight, you can see our core operations revenue by discipline for the quarter. In Q2 2026, revenue for integrated media was approximately 53% of our revenues, which includes our media, commerce, data, CRM, and consulting, and our content automation business. Revenue from advertising was under 16%, health was 9%, PR was 11%, and experiential and other was 11%. Organic revenue growth rates for these core operations disciplines were as follows: integrated media led the way with very strong growth, a little over 10%. Health was flat. PR growth was mid-single digit.

Speaker #2: We expect to complete the remaining dispositions in Q3 and Q4 of 2026. We estimate the revenue related to those businesses will approximate $300 million in Q3 and $225 million in Q4, with EBITDA margins of approximately 10%.

Speaker #2: Turning to slide 8, you can see our core operations revenue by discipline for the quarter. In the second quarter of 2026, revenue for integrated media was approximately 53% of our revenues, which includes our media, commerce, data, CRM, and consulting, and our content automation business.

Speaker #2: Through June 30, 2026, we received proceeds from assets sold of $168 million, and we expect additional proceeds from sales completed in July in excess of $200 million.

Speaker #2: Revenue from advertising was under 16%. Health was 9%. PR was 11%. And experiential and other was 11%. Organic revenue growth rates for these core operations disciplines were as follows.

Speaker #2: Assuming recent FX rates stay the same, we estimate FX will decrease our reported revenue for Q3 by 1%, and be flat for Q4, resulting in an expected benefit for the year of approximately 1%.

Speaker #2: Integrated media led the way with very strong growth and a little over 10%. Health was flat. PR growth was mid-single digit; experiential and other grew over 10% in the quarter due largely to experiential growth related to the FIFA World Cup.

Speaker #2: Turning to slide eight, you can see our core operations revenue by discipline for the quarter. In the second quarter of 2026, revenue for integrated media was approximately 53% of our revenues, which includes our media, commerce, data, CRM, consulting, and our content automation business.

Phil Angelastro: Experiential and other grew over 10% in the quarter due largely to experiential growth related to the FIFA World Cup. Advertising was down in the high single digits. Slide nine shows our core operations revenue by region for the quarter. In terms of the top markets, the US represents 59% of revenue. Together, the UK and Europe were 23%, followed by Asia Pacific at 9%, Latin America at 4%, and Middle East and Africa at 2%. During the quarter, revenue growth in the US was high single digits. Europe growth was low single digits, and Latin American growth was strong at over 10%. Asia Pacific decreased slightly, and Middle East and Africa declined double digits as a result of the ongoing conflict. Slide 10 is our revenue weighted by the industry sectors of our clients. Note, 2025 amounts reflect Omnicom only.

Speaker #2: And advertising was down in the high single digits. Slide 9 shows our core operations revenue by region for the quarter. In terms of the top markets, the US represents 59% of revenue.

Speaker #2: Revenue from advertising was under 16%. Health was 9%. PR was 11%, and experiential and other was 11%. Organic revenue growth rates for these core operations disciplines were as follows.

Speaker #2: Together, the UK and Europe were 23%, followed by Asia Pacific at 9%, Latin America at 4%, and Middle East and the quarter, revenue growth in the US was high single digit.

Speaker #2: Integrated media led the way with very strong growth, a little over 10%. Health was flat. PR growth was mid-single digit. Experiential and other grew over 10% in the quarter, due largely to experiential growth related to the FIFA World Cup. Advertising was down in the high single digits.

Speaker #2: Europe growth was low single digit, and Latin American growth was strong at over 10%. Asia Pacific decreased slightly, and Middle East and Africa declined double digits as a result of the ongoing conflict.

Speaker #2: Slide 10 is our revenue weighted by the industry sectors of our clients. So 2025 amounts reflect omnicom only. In the second quarter, pharma and health was our largest category at 18% of revenue.

Speaker #2: Slide nine shows our core operations revenue by region for the quarter. In terms of the top markets, the US represents 59% of revenue. Together, the UK and Europe were 23%, followed by Asia Pacific at 9%, Latin America at 4%, and Middle East and Africa at 2%.

Phil Angelastro: In Q2, pharma and health was our largest category at 18% of revenue, an increase driven by the larger portfolio in this category at Interpublic. The auto category at 10% decreased due to Interpublic's smaller portfolio in this category relative to Omnicom. Slide 11 is a view of our free cash flow for H1. The increases in free cash flow and capital expenditures are primarily due to the addition of Interpublic's business. Dividends increased to $481.5 million, resulting from the additional shares issued for the IPG acquisition and the recent increase in the quarterly dividend amount. Most notable change in this table is the change in stock repurchases, which were $3 billion in H1 2026. This was composed of both the $2.5 billion accelerated share repurchase program and additional repurchases we made in Q1 and Q2.

Speaker #2: An increase driven by the larger portfolio in this category at Interpublic. The auto category at 10% decreased due to Interpublic's smaller portfolio in this category relative to omnicom.

Speaker #2: During the quarter, revenue growth in the U.S. was high single digits. Europe growth was low single digit, and Latin American growth was strong at over 10%.

Speaker #2: Slide 11 is a view of our free cash flow for the first six months of the year. The increases in free cash flow and capital expenditures are primarily due to the addition of Interpublic's business.

Speaker #2: Asia Pacific decreased slightly. Middle East and Africa declined double digits as a result of the ongoing conflict. Slide 10 is our revenue weighted by the industry sectors of our clients.

Speaker #2: Dividends increased 481.5 million, resulting from the additional shares issued for the IPG acquisition, and the recent increase in the quarterly dividend amount. Most notable change in this table is the change in stock repurchases which were $3 billion in the first half of 2026.

Speaker #2: So, 2025 amounts reflect Omnicom only. In the second quarter, pharma and health was our largest category at 18% of revenue, an increase driven by the larger portfolio in this category at Interpublic.

Speaker #2: This was composed of both the 2.5 billion dollar accelerate share purchase program and additional repurchases we made in Q1 and Q2. We plan to complete the $5 billion share repurchase program announced in February 2026 by the end of Q1 2027.

Speaker #2: The auto category, at 10%, decreased due to Interpublic's smaller portfolio in this category relative to Omnicom. Slide 11 is a view of our free cash flow for the first six months of the year.

Phil Angelastro: We plan to complete the $5 billion share repurchase program announced in February 2026 by the end of Q1 2027. Our definition of free cash flow excludes changes in operating capital. We provide those changes in the non-GAAP reconciliations in the appendix. I want to point out that changes in operating capital in H1 2026 were -$2.4 billion compared to -$1.4 billion in the same period last year. This increase is primarily due to the addition of Interpublic's business and operations in 2026, which are not included in the prior year amounts. Note, for H1 ended 30 June of last year, the change in Interpublic operating capital was approximately -$445 million, as well as incremental payments of approximately $550 million related to severance, repositioning, and integration costs, as well as lease and contractual termination payments.

Speaker #2: The increases in free cash flow and capital expenditures are primarily due to the addition of Interpublic's business. Dividends increased $481.5 million, resulting from the additional shares issued for the IPG acquisition and the recent increase in the quarterly dividend amount.

Speaker #2: Our definition of free cash flow excludes changes in operating capital. And we provide those changes in the non-GAAP reconciliations in the appendix. I want to point out that changes in operating capital in the first half of 2026 were negative 2.4 billion dollars compared to negative 1.4 billion in the same period last year.

Speaker #2: The most notable change in this table is the change in stock repurchases, which were $3 billion in the first half of 2026. This was composed of both the $2.5 billion accelerated share purchase program and additional repurchases we made in Q1 and Q2.

Speaker #2: This increase is primarily due to the addition of Interpublic's business and operations in 2026, which are not included in the prior year amounts. So for the six months ended June 30th of last year, the change in Interpublic operating capital was approximately negative 445 million dollars.

Speaker #2: We plan to complete the $5 billion share repurchase program, announced in February 2026, by the end of Q1 2027. Our definition of free cash flow excludes changes in operating capital, and we provide those changes in the non-GAAP reconciliations in the appendix.

Speaker #2: As well as incremental payments of approximately 550 million, related to severance, repositioning, and integration costs, as well as lease and contractual termination payments. All of our operating capital changes were close to flat year over year.

Speaker #2: I want to point out that changes in operating capital in the first half of 2026 were negative $2.4 billion, compared to negative $1.4 billion in the same period last year.

Phil Angelastro: All other operating capital changes were close to flat year-over-year. Excluding any similar incremental payments in H2, we expect operating capital changes to be flat for the remainder of the year. Slide 12 is a summary of our credit, liquidity, and debt maturities. At the end of Q2 2026, our gross long-term debt was $10.2 billion. Relative to 2025, changes reflect the retirement of our $1.4 billion, 3.6% senior notes due 15 April 2026, and the issuance of our 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. Our next maturity is not until July 2027. We're comfortable with our maturity schedule.

Speaker #2: Excluding any similar incremental payments in the second half, we expect operating capital changes to be flat for the remainder of the year. Slide 12 is a summary of our credit, liquidity, and debt maturities.

Speaker #2: This increase is primarily due to the addition of Interpublic's business and operations in 2026, which are not included in the prior year amounts. So, for the six months ended June 30 of last year, the change in Interpublic operating capital was approximately negative $445 million.

Speaker #2: At the end of the second quarter of 2026, our gross long-term debt was 10.2 billion. Relative to 2025, changes reflect the retirement of our 1.4 billion dollar 3.6% senior notes due April 15th, 2026, and the issuance of our new senior notes totaling 2.3 billion, including 1.7 billion of US dollar denominated notes that are weighted average coupon of 4.9%, and 600 million of EUR denominated notes at a 3.85% coupon.

Speaker #2: As well as incremental payments of approximately $550 million related to severance, repositioning, and integration costs, as well as lease and contractual termination payments. All of our operating capital changes were close to flat year over year.

Speaker #2: Our next maturity is not until July of 2027, and we're comfortable with our maturity schedule. Net interest expense is expected to increase by approximately 200 million in 2026 compared to 167 million in 2025.

Speaker #2: At the end of the second quarter of 2026, our gross long-term debt was $10.2 billion. Relative to 2025, changes reflect the retirement of our $1.4 billion 3.6% senior notes due April 15, 2026, and the issuance of our new senior notes totaling $2.3 billion, including $1.7 billion of U.S. dollar-denominated notes at a weighted average coupon of 4.9% and €600 million of euro-denominated notes at a 3.85% coupon.

Phil Angelastro: Net interest expense is expected to increase by approximately $200 million in 2026 compared to $167 million in 2025. This includes $13 million of non-cash interest. The estimated drivers of this are higher gross interest expense of approximately $230 million, partially offset by higher gross interest income of $30 million. The majority of the increase in gross interest expense is due to long-term debt assumed from Interpublic, as well as the new debt issued and debt refinancing activities in 2026. Please note that the total and net leverage ratios on this slide, which compares the last 12 months ended 30 June 2026 and the prior year, reflect the full assumption of Interpublic's debt, but only EBITDA from Interpublic the seven months since the date of acquisition.

Speaker #2: And this includes 13 million of non-cash interest. The estimated drivers of this are higher gross interest expense of approximately 230 million, partially offset by higher gross interest income of 30 million.

Speaker #2: The majority of the increase in gross interest expense is due to long-term debt assumed from Interpublic as well as the new debt issued and debt refinancing activities in 2026.

Speaker #2: Our next maturity is not until July of 2027, and we're comfortable with our maturity schedule. Net interest expense is expected to increase by approximately $200 million in 2026, compared to $167 million in 2025.

Speaker #2: Please note that the total and net leverage ratios on this slide, which compares the last 12 months ended June 30th, 2026, and the prior year, reflect the full assumption of Interpublic's debt but only EBITDA from Interpublic the seven months since the date of acquisition.

Speaker #2: And this includes $13 million of non-cash interest. The estimated drivers of this are higher gross interest expense of approximately $230 million, partially offset by higher gross interest income of $30 million.

Speaker #2: However, at June 30th, 2026, we were in compliance with the leverage ratio covenant in our credit facility. Which makes pro forma adjustments to the impact of the acquisition.

Phil Angelastro: However, at 30 June 2026, we were in compliance with the leverage ratio covenant in our credit facility, which makes pro forma adjustments to the impact of the acquisition. 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 2.4 times, which is lower than the 2.6 times at 30 June 2025. Our cash equivalents and short-term investments at the end of the quarter were $3.3 billion. Our liquidity also includes an undrawn $3.5 billion revolving credit facility, which backstops our $3 billion commercial paper program. We're very encouraged by the progress we've made over the first six months of the year. We look forward to continuing to build on that progress going forward. I'll now ask the operator to please open the lines up for questions and answers. Thank you.

Speaker #2: The majority of the increase in gross interest expense is due to long-term debt assumed from Interpublic, as well as new debt issued and debt refinancing activities in 2026.

Speaker #2: Calculation of total debt pro forma adjusted EBITDA done in accordance with the definition in our credit agreement results in a total leverage ratio of 2.4 times which is lower than the 2.6 times at June 30th, 2025.

Speaker #2: Please note that the total and net leverage ratios on this slide, which compares the last 12 months ended June 30, 2026, and the prior year, reflect the full assumption of Interpublic's debt but include only EBITDA from Interpublic for the seven months since the date of acquisition.

Speaker #2: Our cash equivalents and short-term investments at the end of the quarter 3.3 billion dollars. Our liquidity also includes an undrawn 3.5 billion dollar revolving credit facility with backstops our 3 billion dollar commercial paper program.

Speaker #2: However, at June 30, 2026, we were in compliance with the leverage ratio covenant in our credit facility, which makes pro forma adjustments to the impact of the acquisition.

Speaker #2: The very encouraged by the progress we've made over the first six months of the year, and we look forward to continuing to build on that progress going forward.

Speaker #2: Calculation of total debt pro forma adjusted EBITDA, done in accordance with the definition in our credit agreement, results in a total leverage ratio of 2.4 times, which is lower than the 2.6 times at June 30, 2025.

Speaker #2: I will now ask the operator to please open the lines up. Questions and answers. Thank you.

Speaker #1: We will now begin the question and answer session. Please limit yourself to one question. If you would like to ask a question, please press star 1 to raise your hand.

Operator: We will now begin the question and answer session. Please limit yourself to one question. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Karnovsky with J.P. Morgan. David, your line is open. Please go ahead.

Operator: We will now begin the question and answer session. Please limit yourself to one question. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Karnovsky with JPMorgan. David, your line is open. Please go ahead.

Speaker #2: Our cash equivalents and short-term investments at the end of the quarter were $3.3 billion. Our liquidity also includes an undrawn $3.5 billion revolving credit facility, which backstops our $3 billion commercial paper program.

Speaker #1: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #2: We're very encouraged by the progress we've made over the first six months of the year, and we look forward to continuing to build on that progress going forward.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Karnovsky.

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

Speaker #1: We will now begin the question-and-answer session. Please limit yourself to one question. If you would like to ask a question, please press star one to raise your hand.

Speaker #1: David, your line is open. Please go ahead.

Speaker #3: Hi, thanks. Hi, thanks. John, sizable acceleration in organic in the quarter. Can you speak to some of the drivers of the better performance, including the Excel and media?

David Karnovsky: Hi. Thanks. John, sizable acceleration in organic in the quarter. Can you speak to some of the drivers of the better performance, including the accel in media? Was this reflective of new business wins or kind of better underlying marketer demand? Any color would be great. For Phil, I heard you reiterate the $900 million synergies this year. You had, at one point, given an expectation of 75% to 80% of that as impacting EBITDA growth and margin. Is that still the case? How should we think about kind of balancing the synergies versus reinvestment in general?

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: Was this reflective of new business wins or kind of better underlying marketer demand? Any color would be great. And then for Phil, I heard you reiterate the 900 million of synergies this year.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Karnovsky with J.P. Morgan.

Speaker #3: You had at one point given an expectation of 75 to 80 percent of that as impacting EBITDA growth and margin. Is that still the case?

Speaker #3: And just how should we think about kind of balancing the synergies versus reinvestment in general?

Speaker #1: David, your line is open. Please go ahead.

Speaker #3: Hi, thanks. John, sizable acceleration in organic in the quarter. Can you speak to some of the drivers of the better performance, including the Excel and media?

Speaker #4: Sure. And just one correction. Anybody who has more than one question, feel free to ask it. In terms of organic growth, our organic growth is coming from and I tried to communicate this in my prepared remarks and I could do a better job next time.

John Wren: Sure. Just one correction, anybody who has more than one question, feel free to ask it. In terms of organic growth, I try to communicate this in my prepared remarks, and I could do a better job next time. Expansion of services to our existing client base was a big contributor to our organic growth this quarter and the new business wins that we had. It continues. We now have a nascent organization of very qualified people at corporate, in addition to what our units are doing, that are looking for those opportunities where we have what we believe is appropriate subsidiaries that can service those clients' needs, and being proactive about going out and talking about it. We also have a more sophisticated, I think, corporate approach to new business, in general.

Speaker #3: Was this reflective of new business wins, or kind of better underlying marketer demand? Any color would be great. And then for Phil, I heard you reiterate the $900 million of synergies this year.

Speaker #4: Expansion of services to our existing client base was a big contributor to our organic growth this quarter. And the new business wins that we had.

Speaker #3: You had at one point given an expectation of 75% to 80% of that as impacting EBITDA growth and margin. Is that still the case, and how should we think about balancing the synergies versus reinvestment in general?

Speaker #4: And so that continues. And we now have a nascent organization of very qualified people at corporate in addition to our units are doing. That are looking for those opportunities where we have what we believe is appropriate subsidiaries that can service those clients' needs and being proactive about going out and talking about it.

Speaker #4: Sure. And just one correction—anybody who has more than one question, feel free to ask it. In terms of organic growth, our organic growth is coming from—and I tried to communicate this in my prepared remarks, and I could do a better job the next time.

Speaker #4: Expansion of services to our existing client base was a big contributor to our organic growth this quarter, as well as the new business wins that we had.

Speaker #4: And we also have a more sophisticated, I think, corporate approach to new business in general. So I think both of the combination of all those activities which are still new and they're developing every single day will continue to seriously contribute to our organic growth.

Speaker #4: And so that continues. And we now have a nascent organization of very qualified people at corporate, in addition to what our units are doing, that are looking for those opportunities where we have what we believe are appropriate subsidiaries that can service those clients’ needs and are being proactive about going out and talking about it.

John Wren: I think both of the combination of all those activities, which are still new and they're developing every single day, will continue to seriously contribute to our organic growth.

Speaker #5: So on the synergy front, David, we certainly are on track as we said in the prepared remarks. 75 to 80 percent of the 900 million in synergy targets is what we expect to deliver for the year.

Phil Angelastro: On the synergy front, David, we certainly are on track, as we said in the prepared remarks. 75% to 80% of the $900 million in synergy targets is what we expect to deliver for the year. We're definitely on track with that. That does include the fact that we're going to continue to invest in the business and invest in the Omni platform and other aspects of the business. You see that in the delivery this quarter and in Q1 in terms of the overall improvement in our EBITDA dollars and in the margin itself.

Speaker #4: And we also have a more sophisticated, I think, corporate approach to new business in general. So I think the combination of all those activities, which are still new and are developing every single day, will continue to seriously contribute to our organic growth.

Speaker #5: And yeah, we're definitely on track with that. That does include the fact that we're going to continue to invest in the business and invest in the omni-platform and other aspects of the business.

Speaker #5: So you see that in the delivery this quarter and in the first quarter in terms of the overall improvement in our EBITDA dollars and in the margin itself.

Speaker #3: So, on the synergy front, David, we certainly are on track, as we said in the prepared remarks. Seventy-five to eighty percent of the $900 million in synergy targets is what we expect to deliver for the year.

Speaker #4: Yeah. And just going back to the first question, it'd be unfair since we invited Florian to the call to be available to us. And quite a number of the wins were media maybe he has something to add that I missed.

John Wren: Just going back to the first question, it'd be unfair since we invited Florian to the call to be available to us and quite a number of the wins were media. Maybe he has something to add that I missed.

Speaker #3: And yeah, we're definitely on track with that. That does include the fact that we're going to continue to invest in the business and invest in the omni-platform and other aspects of the business.

Speaker #5: Yeah, I don't think you missed anything. Look, I think we David, you asked about the clients, client sentiment, right? I mean, they're looking for value from every dollar of marketing investment.

[Company Representative] (Weischer): No, I don't think you missed anything. Look, I think David, you asked about the client sentiment, right? They're looking for value from every dollar of marketing investment. Clients are looking for certainty in what they do in their future-related activities. They're looking for measurable outcomes. I think we've, together with the new assets as we have them assembled, we've built a modern and integrated ecosystem of growth, bringing together industry-leading data identity solutions, best-in-class commerce and retail media. It's all unified in Omni. Yeah, we're happy. We're satisfied with some of the new business wins that we're seeing. To John's point, we're seeing existing clients growing as we help them to better convert audience strategies and come up with more impactful, smarter activation and also have a better closed-loop attribution and measurement.

Speaker #3: So you see that in the delivery this quarter and in the first quarter in terms of the overall improvement in our EBITDA dollars and in the margin itself.

Speaker #5: Clients are looking for certainty. In what they do in their future-related activities, they're looking for measurable outcomes. I think we've together with the new assets as we have them assembled, we've built a modern and integrated ecosystem of growth, bringing together industry-leading data, identity solutions, best-in-class commerce, and retail media.

Speaker #4: Yeah, and just going back to the first question, it would be unfair, since we invited Florian to the call to be available to us, and quite a number of the wins were media. Maybe he has something to add that I missed.

Speaker #5: It's all unified in Omni. So yeah, we're happy. We're satisfied with the with some of the new business wins that we're seeing. To John's point, we're seeing existing clients growing.

Speaker #3: No, I don't think you missed anything. Look, I think we—David, you asked about the clients, client sentiment, right? I mean, they're looking for value from every dollar of marketing investment.

Speaker #5: better convert audience strategies and come up with more impactful smart activation and also have a better closed-loop attribution and measurement. So overall, we're seeing our business growing on new, net new clients, but also existing clients at this point.

Speaker #3: Clients are looking for certainty. In what they do in their future-related activities, they're looking for measurable outcomes. I think we've, together with the new assets as we have them assembled, built a modern and integrated ecosystem of growth, bringing together industry-leading data, identity solutions, best-in-class commerce, and retail media.

[Company Representative] (Weischer): Overall, we're seeing our business growing on net new clients, but also existing clients at this point, and we would hope for that to continue.

Speaker #5: And we would hope for that to continue.

Speaker #1: Excellent. Your next question comes from the line of Stephen Cahal from Wells Fargo. Stephen, your line is open. Please go ahead.

Speaker #3: It's all unified in Omni. So, yeah, we're happy. We're satisfied with some of the new business wins that we're seeing. To John's point, we're seeing existing clients growing.

John Wren: Thanks, Florian.

Operator: Your next question comes from the line of Steven Cahall from Wells Fargo. Stephen, your line is open. Please go ahead.

Operator: Your next question comes from the line of Steven Cahall from Wells Fargo. Steven, your line is open. Please go ahead.

Speaker #3: As we help them to better convert audience strategies and come up with more impactful, smarter activation, and also have better closed-loop attribution and measurement.

Speaker #6: Thank you. So John, as we think about the organic growth trend this year and the way you just talked about the contributors, I think right now the street is still skeptical on the sustainability of growth at the new Omnicom.

Steven Cahall: Thank you. John, as we think about the organic growth trend this year and the way you just talked about the contributors, I think right now the Street is still skeptical on the sustainability of growth at the new Omnicom. Pre-IPG, pre-synergies, the growth rate was certainly lower, typically than what you're seeing this year. How do you just think about the ability to run rate these levels of growth? I'm not asking for medium-term guidance, but just you're divesting a lot of businesses that are slower growth. You're finding synergies in the business. Is there any way to push back on that Street skepticism that you've kind of just solved into it financially this year, and how we think about the longer-term outlook for Omnicom's growth?

Speaker #3: So overall, we're seeing our business growing on new, net new clients, but also existing clients at this point. And we would hope for that to continue.

Speaker #6: Pre-IPG, pre-synergies, the growth rate was certainly lower sort of typically than what you're seeing this year. How do you just think about the ability to sort of run rate these levels of growth?

Speaker #1: Excellent. Great. Your next question comes from the line of Stephen Cahal from Wells Fargo. Stephen, your line is open. Please go ahead.

Speaker #6: I'm not asking for medium-term guidance, but just you're divesting a lot of businesses that are slower growth. You're finding synergies in the business. So is there any way to sort of push back on that street skepticism that we've kind of just solved into it financially this year and how we think about the longer-term outlook for Omnicom's growth?

Speaker #5: Thank you. So John, as we think about the organic growth trend this year and the way you just talked about the contributors, I think right now the Street is still skeptical on the sustainability of growth at the new Omnicom.

Speaker #6: And then Phil, I was wondering if I could just pin you down a little bit on expectations for EPS growth. I mean, I think double-digit was the guide maybe at the investor day.

Steven Cahall: Phil, I was wondering if I could just pin you down a little bit on expectations for EPS growth. I think double digit was the guide, maybe at the investor day. The share count alone gets you there. Revenue's growing faster. I don't know what the incremental margin on the revenue raise is, but you've got synergies in there too. How should we think about the EPS growth in 2026? Thank you.

Speaker #5: Pre-IPG, pre-synergies, the growth rate was certainly lower sort of typically than what you're seeing this year. How do you just think about the ability to sort of run rate these levels of growth?

Speaker #6: The share count alone gets you there. Revenue's growing faster. I don't know what the incremental margin on the revenue raise is, but you've got synergies in there too.

Speaker #5: I'm not asking for medium-term guidance, but you're divesting a lot of businesses that are slower growth, and you're finding synergies in the business. So is there any way to push back on that street skepticism that we've kind of just solved into it financially this year, and how we should think about the longer-term outlook for Omnicom's growth?

Speaker #6: So how should we think about the EPS growth in 2026? Thank you.

Speaker #4: Sure. It's hard to predict the future. And if I was better at it, I probably have done something else as a career. But I'm very confident with the portfolio of assets that we have.

John Wren: Sure. It's hard to predict the future. If I was better at it, I'd probably have done something else as a career. I'm very confident with the portfolio of assets that we have and the way that they're coming together in a way that is different than the way Omnicom operated prior to the acquisition of Interpublic. We're now more of an operating company than a holding company. We're selling as a team with multiple capabilities and crafts because clients are asking for that, because they're asking for simplification in a complicated environment. I'm very comfortable with the teams that we have and with the geographies that we've selected. Many of the companies that we had identified for sale were actually bringing us down in many quarters in terms of what our organic growth was.

Speaker #4: And the way that they're coming together in a way that is different than the way Omnicom operated prior to the acquisition of Interpublic. We're now more of an operating company than a holding company.

Speaker #5: And then, Phil, I was wondering if I could just pin you down a little bit on expectations for EPS growth. I mean, I think double-digit was the guide.

Speaker #5: Maybe at investor day, the share count alone gets you there. Revenue's growing faster. I don't know what the incremental margin on the revenue raise is, but you've got synergies in there too.

Speaker #4: And we're selling as a team with multiple capabilities and crafts because clients are asking for that because they're asking for simplification in a complicated environment.

Speaker #5: So how should we think about the EPS growth in 2026? Thank you.

Speaker #4: Sure. It's hard to predict the future. And if I was better at it, I probably have done something else as a career. But I'm very confident with the portfolio of assets that we have.

Speaker #4: And so I'm very comfortable with the teams that we have and with the geographies that we've selected many of the companies that we had identified for sale were actually bringing us down in many quarters in terms of what our organic growth was.

Speaker #4: And the way that they're coming together is different than the way Omnicom operated prior to the acquisition of Interpublic. We're now more of an operating company than a holding company.

Speaker #4: We were never we were never explaining on our ongoing companies, we're growing at X and these slow companies that we should not have in our portfolio they were bringing that great growth down.

Speaker #4: And we're selling as a team with multiple capabilities and crafts because clients are asking for that, because they're asking for simplification in a complicated environment.

John Wren: We were never explaining, gee, on our ongoing companies, we're growing at X, and there are these slow companies that we should not have in our portfolio. They were bringing that great growth down. I know all that inside baseball, and we've gotten rid of most of the companies that were low growth or no growth. It gives me greater confidence because that top number really wasn't much different than what the top number was in the past, except for we no longer being burdened by what was dragging us down. The other thing which helps in certain businesses of ours, not all businesses, is scale. The combination gave us scale, gave us different assets that we could assemble in a different fashion as we approach our clients' needs.

Speaker #4: And so I'm very comfortable with the teams that we have and with the geographies that we've selected. Many of the companies that we had identified for sale were actually bringing us down in many quarters in terms of what our organic growth was.

Speaker #4: And so I know all that inside baseball and we've gotten rid of most of the companies that were low growth or no growth. It gives me greater confidence because that top number really wasn't much different than what the top number was in the past except for we no longer being burdened by what was dragging us down.

Speaker #4: We were never explaining that our ongoing companies were growing at X, and these slow companies that we should not have in our portfolio were bringing that great growth down.

Speaker #4: The other thing which helps in certain businesses of ours not all businesses is scale. The combination gave us scale. Gave us different assets that we could assemble in a different fashion as we approach our clients' needs.

Speaker #4: And so, I know all that inside baseball, and we've gotten rid of most of the companies that were low growth or no growth. It gives me greater confidence because that top number really wasn't much different than what the top number was in the past, except for we are no longer being burdened by what was dragging us down.

Speaker #4: We're also able in that first bunch of planned dispositions we had a lot of quite a number of countries in our portfolio where one of bad assets but the marketplaces that they were in weren't growing.

John Wren: We were also able, in that first bunch of planned dispositions, we had quite a number of countries in our portfolio where they weren't bad assets, but the marketplaces that they were in weren't growing. It was difficult to expect any kind of growth from them. What we decided in this approach is rather than exit those, we just simply sold down to minority. We're getting the benefits of being able to service our clients in those markets that are global or in need of service in those markets. We're not burdened by this group of low-growth organizations that, again, drag down the calculation. Does that answer your question, or try it again?

Speaker #4: The other thing which helps in certain businesses of ours—not all businesses—is scale. The combination gave us scale and gave us different assets that we could assemble in a different fashion as we approach our clients' needs.

Speaker #4: And so it was difficult to expect any kind of growth from them. What we decided in this approach is rather than exit those, we just simply sold down to minority.

Speaker #4: So we're getting the benefits of being able to service our clients in those markets. That are global or need of service in those markets but we're not burdened by this group of low growth organizations that again drag down the calculation.

Speaker #4: We're also able, in that first bunch of planned dispositions, we had quite a number of countries in our portfolio where we owned bad assets, but the marketplaces that they were in weren't growing.

Speaker #4: I don't does that answer your question or try it again?

Speaker #6: That's great, John. Thank you.

Speaker #4: And so, it was difficult to expect any kind of growth from them. What we decided in this approach is, rather than exit those, we simply sold down to a minority.

Steven Cahall: That's great, John. Thank you.

Speaker #5: Sure. On the EPS front, Steve, we certainly said double-digit and I think it's safe to say to the first six months what we expect for the full year is certainly high teams.

Phil Angelastro: Sure. On the EPS front, Steve, we've certainly said double digit, and I think it's safe to say, for H1, what we expect for the full year is certainly high teens. Greater than 15%, I think for sure, is where we expect to be. We're certainly satisfied with the performance for H1, and we're on track with respect to the synergies and looking at the new business and the new portfolio, we're certainly confident in delivering very strong diluted EPS growth.

Speaker #4: So we're getting the benefits of being able to service our clients in those markets that are global or in need of service in those markets, but we're not burdened by this group of low growth organizations that again drag down the calculation.

Speaker #5: Greater than 15%. I think for sure is where we expect to be and we're certainly satisfied with the performance of the first six months and we're on track with respect to the synergies and looking at the new business and the new portfolio we're certainly confident in delivering very strong delivered EPS growth.

Speaker #4: Does that answer your question, or should I try again?

Speaker #5: That's great, John. Thank you.

Speaker #3: So on the EPS front, Steve, we certainly said double-digit. And I think it's safe to say for the first six months what we expect for the full year is certainly high teams.

Speaker #6: Great. Thank you.

Steven Cahall: Great. Thank you.

Speaker #5: Thank you.

Speaker #1: Your next question comes from the line of Jason Besinay from City. Jason, your line is open. Please go ahead.

Phil Angelastro: Thank you.

Speaker #3: Greater than 15%. I think for sure is where we expect to be and we're certainly satisfied with the performance of the first six months and we're on track with respect to the synergies and looking at the new business and the new portfolio.

Operator: Your next question comes from the line of Jason Bazinet from Citi. Jason, your line is open. Please go ahead.

Speaker #7: I just had one quick question on the quarter. The organic growth was really good, but it didn't seem like there was as much flow-through down to EBITDA or earnings or adjusted earnings.

Jason Bazinet: I just had one quick question on the quarter. The organic growth was really good, but it didn't seem like there was as much flow-through, down to EBITDA or earnings or adjusted earnings. I didn't know if there was anything unique that you would call out that maybe caused the drop through from that incremental revenue to be lower than what we all might have imagined.

Speaker #7: I didn't know if there was anything unique that you would call out that maybe caused the drop-through from that incremental revenue to be lower than what we all might have imagined.

Speaker #3: We're certainly confident in delivering very strong delivered EPS growth.

Speaker #5: Great. Thank you.

Speaker #5: I mean, we actually think flow-through is pretty good. We delivered EBITDA growth in excess of 180 million we delivered EPS growth in excess of 20% for the quarter.

Speaker #3: Thank you.

Phil Angelastro: We actually think flow-through is pretty good. We delivered EBITDA growth in excess of $180 million. We delivered EPS growth in excess of 20% for the quarter. Well, in excess of 20%. At 200 basis point margin improvement. We've done that for H1. Part of that comes from the flow-through of the new business and the growth in the operating companies. Part of it certainly comes from or the majority of it comes from delivering the synergies, we are continuing to invest in the business as we go. It's a critical part of what we're doing here as we bring these two companies together. Certainly, we're focused on sustainable growth for the future, as John had talked about earlier.

Speaker #1: Your next question comes from the line of Jason Besinay from Citi. Jason, your line is open. Please go ahead.

Speaker #6: I just had one quick question on the quarter. The organic growth was really good, but it didn't seem like there was as much flow-through down to EBITDA or earnings, or adjusted earnings.

Speaker #5: Well, in excess of 20%. And at 200 basis points margin improvement and we've done that for the first six months. So part of that comes from the flow-through of the new business and the growth and the operating companies.

Speaker #6: I didn't know if there was anything unique that you would call out that maybe caused the drop-through from that incremental revenue to be lower than what we all might have imagined.

Speaker #5: Part of it certainly comes from or the majority of it comes from delivering the synergies. But we are continuing to invest in the business as we go it's a critical part of what we're doing here as we bring these two companies together and certainly we're focused on sustainable growth for the future as John had talked about earlier.

Speaker #3: I mean, we actually think flow-through is pretty good. We delivered EBITDA growth in excess of 180 million we delivered EPS growth in excess of 20% for the quarter.

Speaker #3: Well, in excess of 20%. And at 200 basis points margin improvement and we've done that for the first six months. So part of that comes from the flow-through of the new business and the growth and the operating companies.

Speaker #5: And in order to do that, we know we need to continue to invest in our platforms and the critical businesses that are going to drive that growth going forward.

Phil Angelastro: In order to do that, we know we need to continue to invest in our platforms, and the critical businesses that are going to drive that growth going forward. That's part of the equation, no doubt. It becomes kind of a continuous process. We need to invest in the business to grow. We grow the business, we deliver improved operating results, we can continue to invest in the business. That's certainly the plan, and we're very focused on executing on it.

Speaker #5: So that's part of the equation no doubt. And it becomes kind of a continuous process. We need to invest in the business to grow, we grow the business, we deliver improved operating results.

Speaker #3: Part of it certainly comes from or the majority of it comes from delivering the synergies. But we are continuing to invest in the business as we go.

Speaker #3: It's a critical part of what we're doing here as we bring these two companies together and certainly we're focused on sustainable growth for the future as John had talked about earlier.

Speaker #5: And we can continue to invest in the business. So that's certainly the plan. And we're very focused on executing on it.

Speaker #4: But not leaving it there for a second. This is a change in tack and I've only done 120-some odd quarterly calls. What were you seeing?

Speaker #3: And in order to do that, we know we need to continue to invest in our platforms and the critical businesses that are going to drive that growth going forward.

John Wren: Not leaving it there for a second, this is a change in tack, and I've only done 120-some-odd quarterly calls. What were you seeing? Does that answer your question, or what's your concern? I'd like to make sure we address it.

Speaker #4: Does that answer your question or are you what's your concern? Because I'd like to make sure we address your concern.

Speaker #3: So that's part of the equation no doubt. And it becomes kind of a continuous process. We need to invest in the business to grow, we grow the business, we deliver improved operating results.

Speaker #7: There's no concern. It's not really a concern. I just want to make sure that we're sort of modeling everything properly as we go through the year and into next year.

Jason Bazinet: No. It's no concern. It's not really a concern. I just want to make sure that we're sort of modeling everything properly as we go through the year and into next year.

Speaker #7: And I just want to make sure that if you're reinvesting in the business, that's sufficient. We'll adjust our numbers accordingly.

Speaker #3: And we can continue to invest in the business, so that's certainly the plan, and we're very focused on executing on it.

John Wren: Okay

Jason Bazinet: If you're reinvesting in the business, that's sufficient. We'll adjust our numbers accordingly.

Speaker #4: Yeah. Great. Super. Thank you.

John Wren: Yeah. Great. Super. Thank you.

Speaker #7: Thank

Speaker #4: But not leaving it there for a second. This is a change in tack, and I've only done 120-some-odd quarterly calls. What were you seeing?

Jason Bazinet: Thank you.

Speaker #1: Your next question comes from the line of Adam Berlin with Goldman Sachs. Adam, your line is open. Please go ahead.

Operator: Your next question comes from the line of Adam Berlin with Goldman Sachs. Adam, your line is open. Please go ahead.

Speaker #4: Does that answer your question, or is there another concern? I want to make sure we address your concerns.

Speaker #8: Hi. Good evening. So at the Q4, 25 results, you talked about 3.2 billion dollars of revenue that was being held for sale. That looks like it's going to be a much bigger number by the end of the year.

Adam Berlin: Hi. Good evening. At the Q4 2025 results, you talked about $3.2 billion of revenue that was being held for sale. That looks like it is going to be a much bigger number by the end of the year. Can you give us any guidance of what you think that number is now going to be, given you have increased the amount of assets that are being held for sale by about $200 million in this quarter alone? That is the first question. Following on from that, can you give us some idea of where those extra revenue dollars are coming from? Which disciplines are they coming from that you have added into the group of held for sale? Can you give us an update on how much of the $900 million of synergies has been delivered at the H1, please? Thank you.

Speaker #6: It's no concern. It's not really a concern. I just want to make sure that we're sort of modeling everything properly as we go through the year and into next year.

Speaker #8: Can you give us any guidance of what you think that number is now going to be given you've increased the amount of assets that are being held for sale by about 200 million dollars in this quarter alone?

Speaker #6: And I just want to make sure of that.

Speaker #4: Okay.

Speaker #6: But if you're reinvesting in the business, that's sufficient. We'll adjust our numbers accordingly.

Speaker #4: Yeah. Great. Super. Thank you.

Speaker #8: So that's the first question. And then following on from that, can you give us some idea of where that extra those extra revenue dollars are coming from?

Speaker #6: Thank you.

Speaker #1: Your next question comes from the line of Adam Berlin with Goldman Sachs. Adam, your line is open. Please go ahead.

Speaker #8: Which disciplines are they coming from that you've added into the group of held for sale? And then can you give us an update on how much of the 900 million dollars of synergies has been delivered at the first half?

Speaker #7: Hi, good evening. So, at the Q4 '25 results, you talked about $3.2 billion of revenue that was being held for sale. That looks like it's going to be a much bigger number by the end of the year.

Speaker #8: Please. Thank you.

Speaker #4: Sure. So I'll

Speaker #5: take each of them and follow up as needed, Adam. If you have any follow-ups. But we describe it, I guess, this way. So the 3.2 of total annualized prior year revenue related to the dispositions the equivalent of that number now is between 3.5 and 3.6 on an annualized basis.

Phil Angelastro: Sure. I will take each of them and follow up as needed, Adam, if you have any follow-ups. We describe it, I guess, this way. The 3.2 of total annualized prior year revenue related to the dispositions, the equivalent of that number now is between 3.5 and 3.6 on an annualized basis. Much of that increase, probably 60% of it relates to businesses in the advertising category. When we look at what is remaining to go, a significant amount of that has been completed, as we discussed or mentioned in our prepared remarks. When you look at Q3 and Q4, the estimate of what we expect to still be in our P&L in Q3 and Q4 is revenue of about $300 million in Q3 and revenue of about $225 million in Q4 in the disposal/held for sale category.

Speaker #7: Can you give us any guidance on what you think that number is now going to be, given you’ve increased the amount of assets that are being held for sale by about $200 million in this quarter alone?

Speaker #7: So that's the first question. And then, following on from that, can you give us some idea of where those extra revenue dollars are coming from?

Speaker #7: Which disciplines are they coming from that you've added into the group of held for sale? And then, can you give us an update on how much of the $900 million of synergies has been delivered in the first half?

Speaker #5: Much of that increase probably 60% of it relates to businesses in the advertising category. And when we look at what's remaining to go, a significant amount of that has been completed.

Speaker #7: Please. Thank you.

Speaker #4: Sure. So I'll

Speaker #3: Take each of them and follow up as needed, Adam, if you have any follow-ups. But we describe it, I guess, this way: so the $3.2 billion of total annualized prior year revenue related to the dispositions—the equivalent of that number now is between $3.5 and $3.6 billion on an annualized basis.

Speaker #5: As we discussed, or mentioned in our prepared remarks, so when you look at Q3 and Q4, the estimate of what we expect to still be in our P&L in Q3 and Q4 is revenue of about 300 million in Q3 and revenue of about 225 million in Q4 in the disposal/held for sale category.

Speaker #3: Much of that increase—probably 60% of it—relates to businesses in the advertising category. And when we look at what's remaining to go, a significant amount of that has been completed.

Speaker #5: And certainly, we're on track right now to complete all of those dispositions by the time we get to year-end. And we're pretty satisfied with the progress we've made in completing the dispositions so far through the end of this month.

Phil Angelastro: Certainly, we are on track right now to complete all of those dispositions by the time we get to year-end. We are pretty satisfied with the progress we have made in completing the dispositions so far through the end of this month. We are going to continue to aggressively pursue the completion of the remaining transactions.

Speaker #3: As we discussed, or mentioned in our prepared remarks, when you look at Q3 and Q4, the estimate of what we expect to still be in our P&L in Q3 and Q4 is revenue of about $300 million in Q3 and revenue of about $225 million in Q4 in the disposal/held for sale category.

Speaker #5: And we're going to continue to aggressively pursue the completion of the remaining transactions.

Speaker #4: If I can add just one thing. At this point, and we said this, Adam, probably every other call, if not every call, we've been on, that we're always looking at the portfolio and always making adjustments.

John Wren: If I can add just one thing. At this point, we said this, Adam, on probably every other call, if not every call we have been on, that we are always looking at the portfolio and always making adjustments. Sometimes they are internal, and you do not see them, other times you do. There still remains two assets which are not going to seriously affect any of the information that we have given you, that we have under consideration. We have not made a final decision six months into the deal as to whether we are going to keep them long-term or not keep them long-term. That will depend on a lot of factors, and a lot is the amount of money we are going to get for them if we do decide to get rid of them.

Speaker #3: And certainly, we're on track right now to complete all of those dispositions by the time we get to year-end. And we're pretty satisfied with the progress we've made in completing the dispositions so far through the end of this month.

Speaker #4: Sometimes they're internal, and you don't see them, and other times you do. They're still remains two assets, which you're not going to seriously affect any of the information that we've given you.

Speaker #3: And we're going to continue to aggressively pursue the completion of the remaining transactions.

Speaker #4: That we haven't we have under consideration. We haven't made a final decision six months into the deal as to whether we're going to keep them long-term or not keep them long-term.

Speaker #4: If I can add just one thing. At this point—and we've said this, Adam, probably every other call, if not every call we've been on—we're always looking at the portfolio and always making adjustments.

Speaker #4: That'll depend on a lot of factors. And a lot is the amount of money we're going to get for them. If we do decide to get rid of them.

Speaker #4: So I think we've done an outstanding job in getting rid of over 2 billion dollars of these assets in the first six months of this year.

Speaker #4: Sometimes they're internal and you don't see them, and other times you do. They still remain two assets, which are not going to seriously affect any of the information that we've given you.

John Wren: I think we've done an outstanding job in getting rid of over $2 billion of these assets in the first 6 months of this year.

Speaker #4: So we're seventh.

Speaker #5: Seven months, technically.

Speaker #4: That we haven't. We have it under consideration. We haven't made a final decision six months into the deal as to whether we're going to keep them long-term or not keep them long-term.

Speaker #4: Say seven months. Quite a bit was completed in July. So I agree.

Phil Angelastro: 7 months, technically.

John Wren: I'll say 7 months. Quite a bit was completed in July, so I agree.

Speaker #5: Yeah. Just to follow up on the second part of your question, because I didn't address it, Adam. In terms of synergies, we're about we're a little over halfway through.

Phil Angelastro: Yeah. Just to follow up on the second part of your question, because I didn't address it, Adam. In terms of synergies, we're a little over halfway through the $900 million. We expect a similar progression in Q3 and Q4 as we continue to pursue the plans that we had set out when we announced the transaction back in December.

Speaker #4: That'll depend on a lot of factors. And a lot is the amount of money we're going to get for them. If we do decide to get rid of them.

Speaker #5: The 900 million. And we expect a similar progression in Q3 and Q4. As we continue to pursue the plans that we had set out when we announced the transaction.

Speaker #4: So I think we've done an outstanding job in getting rid of over $2 billion of these assets in the first six months of this year.

Speaker #4: So or seven.

Speaker #5: Back in December.

Speaker #3: Seven months, technically.

Speaker #4: Seven months. Quite a bit was completed in July, so I agree.

Speaker #8: Thank you very much.

Speaker #3: Yeah. Just to follow up on the second part of your question, because I didn't address it, Adam, in terms of synergies, we're about we're a little over halfway through.

Speaker #5: Sure.

Adam Berlin: Thank you very much.

Phil Angelastro: Sure.

Speaker #1: Your next question comes from the line of Sean Difley with Morgan Stanley. Sean, your last question.

Operator: Your next question comes from the line of Sean Diffley with Morgan Stanley. Sean, your line's open.

Speaker #8: Great. Thanks very much. Thanks, team. John, I was hoping you could describe the macro as you see it. You're obviously growing in excess of GDP, but there's a lot of cross-currents out there with oil and rates.

Sean Diffley: Great. Thanks very much. Thanks, team. John, I was hoping you could describe the macro as you see it. You're obviously growing in excess of GDP, but there's a lot of cross currents out there with oil and rates. I was curious the tone of conversations with your advertisers. Phil, I think you said advertising was down high singles, maybe just anything you'd call out from a vertical perspective there. Thank you.

Speaker #3: The $900 million. And we expect a similar progression in Q3 and Q4 as we continue to pursue the plans that we had set out when we announced the transaction.

Speaker #8: So I was curious the tone of conversations with your advertisers and Phil, I think you said advertising was down high singles. Maybe just anything you'd call out from a vertical perspective there.

Speaker #8: Thank you.

Speaker #4: I would say this is generalization. So by definition, it's wrong. But in the clients that we speak to about futures and about what their plans are, I would say the cautiously optimistic.

Speaker #3: Back in December.

John Wren: I would say this is generalization, so by definition it's wrong. In the clients that we speak to about futures and about what their plans are, I'd say they're cautiously optimistic. Nobody's happy about what's going on in the Middle East. We're hoping that it ends soon. What is remarkable, and I think has made clients a little bit more optimistic or cautiously optimistic, is that if you go back several months, these same events were in play and they were more frightening actually then in terms of what the impact would be on business. It was what was the impact of the tariffs going to be, what was the Ukrainian war, what was going to happen in the Middle East. People would seem to have digested those, or they've changed their supply outlets and have adjusted to these things, which is fairly remarkable, and we're pretty pleased.

Speaker #7: Thank you very much.

Speaker #3: Sure.

Speaker #1: Your next question comes from the line of Sean Difley with Morgan Stanley. Sean relaxed.

Speaker #7: Great. Thanks very much. Thanks, team. John, I was hoping you could describe the macro as you see it. You're obviously growing in excess of GDP, but there are a lot of cross-currents out there with oil and rates.

Speaker #4: Nobody's happy about what's going on in the Middle East. We're hoping that it ends soon. There's a lot of what is remarkable, and I think as made clients a little bit more optimistic or cautiously optimistic, is that if you go back several months, these same events were in play and they were more frightening actually then in terms of what the impact would be on business.

Speaker #7: So I was curious the tone of conversations with your advertisers and Phil, I think you said advertising was down high singles, maybe just anything you'd call out from a vertical perspective there.

Speaker #7: Thank you.

Speaker #4: I would say this is a generalization, so by definition, it's wrong. But in the clients that we speak to about futures and about what their plans are, I would say they're cautiously optimistic.

Speaker #4: It was what was the impact of tariffs going to be? What was the Ukrainian war? What was going to happen in the Middle East?

Speaker #4: People who seem to have digested those or they've changed their supply outlets and have adjusted to these things, which is fairly remarkable. And we're pretty pleased.

Speaker #4: And we've been working with our clients through all this. And it's taught us quite a bit too.

John Wren: We've been working with our clients through all this, and it's taught us quite a bit too.

Speaker #5: So on the advertising questions, certainly creativity is and continues to be a key part of our DNA for the advertising group as well as all of our service disciplines.

Phil Angelastro: Sean, on the advertising questions, certainly, creativity is and continues to be a key part of our DNA for the advertising group as well as all of our service disciplines. It's certainly a core in what we deliver throughout all our businesses and to our clients. The Omnicom Advertising Group continues to roll out our implementation of a more connected and centrally driven Omnicom Advertising Group, which we talked about on several calls, not just this year, but we started this a while back in 2025 or maybe even late 2024. The process in that group to bring together the new assets from IPG with the Omnicom assets resulted in a number of changes in terms of realigning brands and in some cases eliminating brands. There's been a lot of activity internally within the Omnicom Advertising Group.

Speaker #4: Actually, then in terms of what the impact would be on business, it was what was the impact of tariffs going to be? What was the Ukrainian war?

Speaker #5: It's certainly a core in what we deliver throughout all our businesses and to our clients. The advertising group continues to roll out our implementation of a more connected and centrally driven on-the-come advertising group, which we talked about on several calls, not just this year but we started this a while back in '25 or maybe even late '24.

Speaker #4: What was going to happen in the Middle East? People would seem to have digested those, or they've changed their supply outlets and have adjusted to these things, which is fairly remarkable.

Speaker #4: And we're pretty pleased. We've been working with our clients through all of this, and it's taught us quite a bit too.

Speaker #3: So, on the advertising questions, certainly creativity is and continues to be a key part of our DNA for the advertising group, as well as all of our service disciplines.

Speaker #5: And the process in that group to bring together the new assets from IPG with the on-the-come assets resulted in a number of changes in terms of realigning brands and in some cases eliminating brands.

Speaker #3: It's certainly a core in what we deliver throughout all our businesses and to our clients. The advertising group continues to roll out our implementation of a more connected and centrally driven omnicom advertising group, which we talked about on several calls, not just this year but we started this a while back in '25 or maybe even late '24.

Speaker #5: So there's been a lot of activity internally within the on-the-come advertising group. And we've also disposed of several small low-growth markets as John had alluded to in different parts of the world where we didn't need to have multiple agencies servicing clients in one market.

Phil Angelastro: We've also disposed of several small low growth markets, as John had alluded to, in different parts of the world where we didn't need to have multiple agencies servicing clients in one market. There's been a lot of activity in bringing these businesses together, and certainly, we've made significant progress. OAG is going to continue to drive our strategies of innovation and integrated solutions and will be a key part of all our global integrated pitches now and going forward. I'd say some internal reorganization has been the driver of a lot of change in that business for the first six months here post-deal.

Speaker #3: And the process in that group to bring together the new assets from IPG with the Omnicom assets resulted in a number of changes in terms of realigning brands and, in some cases, eliminating brands.

Speaker #5: So there's been a lot of activity in bringing these businesses together and certainly we've made significant progress. NOAG is going to continue to drive our strategies of innovation and integrated solutions and will be a key part of all our global integrated pitches.

Speaker #3: So, there's been a lot of activity internally within the Omnicom Advertising Group. We've also disposed of several small, low-growth markets, as John had alluded to, in different parts of the world where we didn't need to have multiple agencies servicing clients in one market.

Speaker #5: Now and going forward. But I'd say some internal reorganization has been the driver of a lot of change in that business for the first six months here post-deal.

Speaker #4: But let me just emphasize one thing that everything that Phil said is actually what's affecting the business. But creative is our IP. And we're completely dedicated to it even as it goes through some of these difficulties because we'll work through them.

Speaker #3: So there's been a lot of activity in bringing these businesses together, and certainly we've made significant progress. NOAG is going to continue to drive our strategies of innovation and integrated solutions and will be a key part of all our global integrated pitches.

John Wren: Let me just emphasize one thing, that everything that Phil said is actually what's affecting the business, but creative is our IP, and we're completely dedicated to it, even as it goes through some of these difficulties, because we'll work through them. I just want to reinforce that point.

Speaker #4: So I just want to reinforce that point.

Speaker #8: Thank you.

Speaker #3: Now, and going forward, I'd say some internal reorganization has been the driver of a lot of change in that business for the first six months here post-deal.

Sean Diffley: Thank you.

Speaker #1: Your next question comes from the line of Julian Rock with Barclays. Julian, please go ahead.

Operator: Your next question comes from the line of Julien Roch with Barclays. Julien, please go ahead.

Speaker #2: Yes. Good evening. Boring question for Phil. Can we get the breakdown of the 568 in Q2 this year and the 961 last year between what has been sold already and what is to be sold?

Julien Roch: Yes. Good evening. Boring question for Phil. Could we get the breakdown of the 568 in Q2 this year and the 961 last year between what has been sold already and what is to be sold? Then same question for H1.

Speaker #4: But let me just emphasize one thing that everything that Phil said is actually what's affecting the business. But creative is our IP. And we're completely dedicated to it even these difficulties because we'll work through them.

Speaker #2: And then same question for FirstNav.

Speaker #5: When you say 568 and 961, Julian, that isn't a ringing a bell off the top of my head.

Speaker #4: So I just want to reinforce that point.

Phil Angelastro: When you say 568 and 961, Julien, that isn't ringing a bell off the top of my head.

Speaker #7: Thank you.

Speaker #2: 567.5 and 960.5. Those are the disposition revenue in Q2 this year and last year. And that's a mix of what you sold already and what you are going to sell.

Speaker #1: Your next question comes from the line of Julian Rock with Barclays. Julian, please go ahead.

Julien Roch: 567.5 and 960.5. Those are the disposition revenue in Q2 this year and last year. That's a mix of what you sold already and what you are going to sell. I was wondering whether we could get the split between what you sold already. If you sell something in-

Speaker #5: Yes. Good evening. Boring question for Phil. Can we get the breakdown of the 568 in Q2 this year and the 961 last year between what has been sold already and what is to be sold?

Speaker #2: So I was wondering whether we could get the split between what you sold already so if you sell something in.

Speaker #5: So yeah. I'm not sure I can split those exact numbers for you, but I think I would say we've completed if you look at it as how much of what we expect to sell have we completed?

Speaker #5: And then, same question for FirstNav.

Phil Angelastro: I'm not sure I can split those exact numbers for you. I think I would say we've completed. If you look at it as how much of what we expect to sell have we completed, it's probably about close to 60% of the businesses that we intend to sell have been sold. Or 60% of the annualized revenue, which we talked about before, between 3.5 and 3.6, have been sold. If you then consider our expectations for Q3 and Q4 of what we have left to do, the contribution of those assets that we're selling in Q3, we expect to be $300 million in revenue and around a 10% margin or so, and $225 million of revenue in Q4 and around about a 10% margin or so.

Speaker #3: When you say 568 and 961, Julian, that isn't ringing a bell off the top of my head.

Speaker #5: 567.5 and 960.5—those are the disposition revenues in Q2 this year and last year. And that's a mix of what you sold already and what you are going to sell.

Speaker #5: It's probably about close to 60% of the businesses that we intend to sell have been sold. And or 60% of the annualized revenue which we talked about before of 3.

Speaker #5: So I was wondering whether we could get the split between what you've sold already. So, if you sell something in...

Speaker #5: between 3.5 and 3.6 have been sold. And if you then consider our expectations for Q3 and Q4 of what we have left to do, the contribution of those assets that we're selling in Q3, we expect to be 300 million in revenue and around a 10% margin or so.

Speaker #3: So, yeah, I'm not sure I can split those exact numbers for you, but I think I would, completed if you look at it as how much of what we expect to sell have we completed?

Speaker #3: It's probably about close to 60% of the businesses that we intend to sell have been sold, and, or 60% of the annualized revenue—which we talked about before—of $3 billion.

Speaker #5: And 225. Of revenue in Q4 and around about a 10% margin or so. So we're not as focused on the deconstructing necessarily the previous numbers, but we thought there would be more clarity for the people on the call and investors if we gave you the estimate of what we expect those revenues and EBIT to be for the businesses that we're disposing in Q3 and Q4.

Phil Angelastro: We're not as focused on the deconstructing necessarily the previous numbers, but we thought there would be more clarity for the people on the call and investors if we gave you the estimate of what we expect those revenues and EBIT to be for the businesses that we're disposing in Q3 and Q4.

Speaker #3: between 3.5 and 3.6 have been sold. And if you then consider our expectations for Q3 and Q4 of what we have left to do, the contribution of those assets that we're selling in Q3, we expect to be 300 million in revenue and around a 10% margin or so.

Speaker #4: Yeah. And now that I'd add is our focus has been and our investments have been in what we're referring to as core operations. In those financial statements, the presentation that you see is driven more by the rules here of how we have to present the financials than anything else.

John Wren: Yeah. The other thing I'd add is our focus has been, and our investments have been, in what we're referring to as core operations in those financial statements. The presentation that you see is driven more by the rules here of how we have to present the financials than anything else. Next year, with any good luck, we won't be discussing this any longer.

Speaker #3: And $225 million of revenue in Q4 and around about a 10% margin or so. So we're not as focused on deconstructing necessarily the previous numbers, but we thought there would be more clarity for the people on the call and investors if we gave you the estimate of what we expect those revenues and EBIT to be for the businesses that we're disposing in Q3 and Q4.

Speaker #4: And next year, with any good luck, we won't be discussing this any longer.

Speaker #2: And Phil, that 60%, is it today, end of July, or is it end of June?

Julien Roch: Phil, that 60%, is it today end of July, or is it end of June?

Speaker #5: The 60 is probably the end of July, yeah.

Speaker #4: End of July.

Speaker #5: Yeah. There were a few timing items that closed in July and didn't close at the end of June.

Phil Angelastro: The 60 is probably the end of July, yeah.

John Wren: End of July.

Speaker #4: Yeah, and the only thing I'd add is our focus has been, and our investments have been, in what we're referring to as core operations.

Phil Angelastro: Yeah. There were a few timing items that closed in July and didn't close at the end of June.

Speaker #2: And do you know what it was end of June or not?

Julien Roch: Do you know what it was end of June or not?

Speaker #5: I don't think it's significantly different, but it's lower than 60%.

Speaker #4: In those financial statements, the presentation that you see is driven more by the rules here of how we have to present the financials than anything else.

Phil Angelastro: I don't think it's significantly different, but it's lower than 60%.

Speaker #2: All right. Thank you.

Speaker #5: Sure. Thank you, Julian. Thanks for joining us late on your time.

Speaker #4: And next year, with any good luck, we won't be discussing this any

Julien Roch: All right. Thank you.

Phil Angelastro: Sure. Thank you, Julien. Thanks for joining us late in your time.

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

Speaker #5: And Phil, that 60%—is it as of today, end of July, or is it as of end of June?

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

Speaker #6: Thanks. I have a couple. John, can I ask Florian a question? Is he there? Sure. Go right ahead. Okay. Okay. So Florian, one of the assumptions we're all making is that IPG media brands wasn't very modern when it came to principal media buying and planning.

Speaker #3: The 60 is probably the end of July, yeah.

Michael Nathanson: Thanks. I have a couple. John, can I ask Florian a question now that he's there?

Speaker #4: End of July.

Speaker #3: Yeah, there were a few timing items that closed in July and didn't close at the end of June.

Phil Angelastro: He's here.

John Wren: Sure. Go right ahead.

Speaker #5: And do you know whether it was at the end of June or not?

Michael Nathanson: Okay. Florian, one of the assumptions we're all making is that IPG Mediabrands wasn't very modern when it came to principal media buying and planning. Can you talk a bit about what changes have you brought to the Mediabrands side of the assets you acquired, and kind of how that has tracked versus what you expected, and what role principal media buying has played there? Phil, for you, just on those, if you look at your slides, $87.1 billion of adjustments. Are those adjustments related to the assets you're selling, or are those related to the kind of what's remaining? You call that also World Cup as a benefit. Any way to quantify that? Is that impacting your look for the H2? Maybe there's a little bit of a World Cup benefit this quarter. Anything there would be helpful.

Speaker #3: I don't think it's significantly different, but it's lower than 60%.

Speaker #6: Can you talk a bit about what changes have you brought to the media brand side of the assets you acquired and kind of how that has tracked versus what you expected?

Speaker #5: All right. Thank you.

Speaker #3: Sure. Thank you, Julian. Thanks for joining us late in your time.

Speaker #6: And what role principal media buying has played there. And then Phil, for you, just on those if you look at your slides, 87.1 billion of adjustments, are those adjustments related to the assets you're selling or are those related to the kind of what's remaining?

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

Speaker #6: Thanks. I have a couple. John, can I ask Florian a question? Is he there? Sure. Go right ahead. Okay. So, Florian, one of the assumptions we're all making is that IPG Mediabrands wasn't very modern when it came to principal media buying and planning.

Speaker #6: And then you call that also world cup as a benefit. Any way to quantify that? And is that impacting your look for the second half?

Speaker #6: And maybe there's a little bit of a world cup benefit this quarter. So anything there would be helpful. Thanks.

Speaker #6: Can you talk a bit about what changes you have brought to the media brand side of the assets you acquired, and how that has tracked versus what you expected?

Speaker #5: I'll take the media question. And Michael, look, your question was around IPG and then you added the principal media factor to it. I think what I explained a moment ago around building an integrated platform capability is really what we're doing.

Michael Nathanson: Thanks.

[Company Representative] (Weischer): I'll take the media question. Michael, look, your question was around IPG, then you added the principal media factor to it. I think what I explained a moment ago around building an integrated platform capability is really what we're doing. What I found is two very strong, very sophisticated organizations coming together that complemented each other quite well. You, as we have discussed before, know that Acxiom and its Real ID is a true best-in-class asset. Around that ID and identity solution, what it is that we're creating is really this flywheel that delivers value, proven outcomes, and measurable returns to clients. I would not want to score either legacy operation as more or less sophisticated. I think the pieces that I was provided with and given, they fit to each other quite well.

Speaker #6: And what role principal media buying has played there. And then, Phil, for you, just on those—if you look at your slides, $87.1 billion of adjustments, are those adjustments related to the assets you're selling, or are those related to what's remaining?

Speaker #5: And what I found is two very, very strong very sophisticated organizations coming together that complemented each other quite well. You, as we have discussed before, know that Axiom and its real ID is a true best-in-class asset.

Speaker #6: And then you call that also World Cup as a benefit. Any way to quantify that? And is that impacting your outlook for the second half?

Speaker #6: And maybe there's a little bit of a World Cup benefit this quarter, so anything there would be helpful. Thanks.

Speaker #5: And around that idea and identity solution, what it is that we're creating is really this flywheel that delivers value, proven outcomes, and measurable returns to clients.

Speaker #3: I'll take the media question. And, Michael, look, your question was around IPG, and then you added the principal media factor to it. I think what I explained a moment ago around building an integrated platform capability is really what we're doing.

Speaker #5: And so I would not want to score either legacy operation as more or less sophisticated. I think the pieces that I was provided with and given they fit to each other quite well.

Speaker #3: And what I found is two very, very strong, very sophisticated organizations coming together that complemented each other quite well. You, as we have discussed before, know that Acxiom and its Real ID is a true best-in-class asset.

Speaker #5: And so the scale combined with the capabilities with the commerce the retail the platform piece that is all now AI-driven and unified in Omni.

[Company Representative] (Weischer): The scale combined with the capabilities, with the commerce, the retail, the platform piece, that is all now AI-driven and unified in Omni. These things are coming together nicely. Principal media, because you addressed this, is part of the value equation. This is what the modern marketplace looks like. It gives clients what they need and what they want in terms of value extraction. It becomes part of a very integrated go-to market approach. That's where we are with this right now. I will say, the teams have come together brilliantly. There was an immediate cultural fit, and I think that has helped a lot as we looked at both sides and tried to ascertain the assets that we had and how to combine them across both legacy sides.

Speaker #3: And around that ID and identity solution, what we're creating is really this flywheel that delivers value, proven outcomes, and measurable returns to clients.

Speaker #5: These things are coming together nicely. And principal media, because you addressed this, is part of the value equation this is what the modern marketplace looks like.

Speaker #5: It gives clients what they need and what they want in terms of value, extraction. So it becomes part of a very integrated go-to-market approach.

Speaker #3: And so I would not want to score either legacy operation as more or less sophisticated. I think the pieces that I was provided with, and given they fit to each other quite well.

Speaker #5: And so that's where we are with this right now. And I will say the teams have come together brilliantly. There was an immediate cultural fit.

Speaker #3: And so the scale, combined with the capabilities in commerce, retail, and the platform piece, is all now AI-driven and unified in Omni.

Speaker #5: And I think that has helped a lot as we looked at both sides and tried to entertain the assets that we had and how to combine them across both legacy sides.

Speaker #3: These things are coming together nicely. And principal media, because you addressed this, is part of the value equation—this is what the modern marketplace looks like.

Speaker #5: So we really look at this as one company now. And there is no more legacy. This and legacy that. So on your other questions, Michael, the 87 million of adjustments was unrelated to dispositions.

[Company Representative] (Weischer): We really look at this as one company now, and there is no more legacy this and legacy that.

Speaker #3: It gives clients what they need and what they want in terms of value extraction. So, it becomes part of a very integrated go-to-market approach.

Phil Angelastro: On your other questions, Michael, the $87 million of adjustments was unrelated to dispositions. $47 million of that related to severance and repositioning costs as we continue to implement our synergy and cost reduction plans. $40 million of that related to integration-related costs as we continue a bunch of initiatives to bring the two companies together, common systems, common platforms, et cetera. As far as the World Cup benefit goes, I think when you look at the experiential and other category and the numbers that we included in the investor deck, the majority of the growth in that sector, which was in excess of about 10% of that part of the business, was principally or primarily World Cup related. That drove most of the growth in that category.

Speaker #5: You have 47 million of that related to severance and repositioning costs. As we continue to implement our synergy and cost reduction plans, and then 40 million of that related to integration-related costs as we continue a bunch of initiatives to bring the two companies together common systems, common platforms, etc.

Speaker #3: And so that's where we are with this right now. And I will say the teams have come together brilliantly. There was an immediate cultural fit.

Speaker #3: And I think that has helped a lot as we looked at both sides and tried to entertain the assets that we had and how to combine them across both legacy sides.

Speaker #3: So, we really look at this as one company now, and there is no more "legacy this" and "legacy that."

Speaker #5: And as far as the world cup benefit goes, I think when you look at the experiential and other category and the numbers that we included in the investor deck, the majority, the growth in that sector, which was about in excess of about 10% of that part of the business, was principally or primarily world cup.

Speaker #2: So, on your other questions, Michael, the $87 million of adjustments was unrelated to dispositions. Forty-seven million of that related to severance and repositioning costs.

Speaker #2: As we continue to implement our synergy and cost reduction plans, $40 million of that is related to integration-related costs, as we continue a bunch of initiatives to bring the two companies together—common systems, common platforms, etc.

Speaker #5: Related that drove most of the growth in that category.

Speaker #4: And there'll be some contribution of the third quarter. And it also caused us to relook at sports, which we mentioned earlier in the call.

John Wren: There'll be some contribution in the Q3. It also caused us to re-look at sports, which we mentioned earlier in the call, and our impact on sports, because each has their own unique relationships, capabilities, which we're able to bring together for the benefit of our clients. We'll be up against it for sure next year, but we're working very hard because sports are key to almost every one of our clients at this point.

Speaker #2: And as far as the World Cup benefit goes, I think when you look at the experiential and other category, and the numbers that we included in the investor deck, the majority—the growth in that sector, which was in excess of about 10% of that part of the business—was principally, or primarily, World Cup.

Speaker #4: And our impact on sports because each has their own unique relationships, capabilities which we're able to bring together. So the benefit of our clients.

Speaker #4: So we'll be up against it for sure next year, but we're working very hard because sports are key. So almost every one of our clients at this point.

Speaker #2: Related, that drove most of the growth in that category.

Speaker #4: And there'll be some contribution in the third quarter. And it also caused us to relook at sports, which we mentioned earlier in the call.

Speaker #2: All right. Thank you, guys.

Michael Nathanson: Thank you, guys.

Speaker #1: Your next question comes from the line of Craig Huber with Huber Research Partners.

Operator: Your next question comes from the line of Craig Huber with Huber Research Partners.

Speaker #4: And our impact on sports, because each has their own unique relationships and capabilities, which we're able to bring together to the benefit of our clients.

Speaker #7: Great. Thank you. On the AI front from cost savings perspective, can you just give us some more ideas here about where you're seeing the most significant AI-related cost savings in the portfolio?

Craig Huber: Great, thank you. On the AI front from cost savings perspective, can you just give us some more ideas here about where you're seeing the most significant AI-related cost savings in the portfolio? The more important question is, those cost savings AI in general you guys are getting, they're getting passed on to clients. Update us on your thoughts with clients about what the clients are doing with those cost savings that you pass on to them. Are they reinvesting that back into marketing and advertising, so it's a flywheel, it's benefiting you guys? Or is there much leakage where it's come out of the system, they're saving money and they're pulling out of marketing and advertising and spending it elsewhere, R&D, et cetera? Maybe just touch on those two points, please. Thank you.

Speaker #7: And then the more important question is, those cost savings AI in general that you guys are getting that are getting passed on to clients, update us on your thoughts with clients about what the clients are doing with those cost savings that you passed on to them.

Speaker #4: So we'll be up against it for sure next year, but we're working very hard because sports are key to almost every one of our clients at this point.

Speaker #7: Are they reinvesting that back into marketing and advertising so it's a flywheel? It's benefiting you guys? Or is there much leakage where it's come out of the system?

Speaker #6: Thank you, guys.

Speaker #7: They're saving money and they're pulling out of marketing and advertising and spending it elsewhere at R&D, etc.? Maybe just touch on those two points, please.

Speaker #1: Your next question comes from the line of Craig Huber with Huber Research Partners.

Speaker #7: Thank you.

Speaker #5: Great, thank you. On the AI front, from a cost-savings perspective, can you just give us some more ideas here about where you're seeing the most significant AI-related cost savings in the portfolio?

Speaker #4: Sure. I mean, we've been using AI and generative AI for a long time now. And what's made it easier is as we look at the agentic environment, which is nascent, and it's going to be something that will be part of the future.

John Wren: Sure. We've been using AI and generative AI for a long time now. What it's made easier is as we look at the agentic environment, which is nascent, and it's going to be something that will be part of the future and will be rolling out. In a large part, these are tools. Ultimately, the shorts and everybody else who've been out there saying, Oh my goodness, this service business is going to be replaced by AI, don't know what they're talking about. Plus, the other thing the marketplace hasn't seen is what the cost of this AI is, right? That's going to weigh into the equation as well. It's changing every moment. We have the person responsible for it here.

Speaker #5: And then the more important question is, those cost savings, AI in general that you guys are getting, or getting passed on to clients—update us on your thoughts with clients about what the clients are doing with those cost savings that you passed on to them?

Speaker #4: It will be rolling out. But in a large part, these are tools. And ultimately, the shorts and everybody else who have been out there saying, "Oh, my goodness, this service business is going to be replaced by AI," don't know what they're talking about.

Speaker #5: Are they reinvesting that back into marketing and advertising so it's a flywheel? It's benefiting you guys? Or is there much leakage, where it's come out of the system?

Speaker #5: They're saving money, and they're pulling out of marketing and advertising and spending it elsewhere, at R&D, etc.? Maybe just touch on those two points, please.

Speaker #5: Thank you.

Speaker #4: Plus, the other thing the marketplace hasn't seen is what the cost of this AI is. Right? And that's going to weigh into the equation as well.

Speaker #4: Sure. I mean, we've been using AI and generative AI for a long time now. What's made it easier is, as we look at the agentic environment—which is nascent and will certainly be part of the future—we can see how things are evolving.

Speaker #4: So it's a changing every moment. We have the person responsible for it here. Paolo, you can add something to it. But yeah, so what we're doing is where there are savings, we're sharing them with our clients, for sure.

Speaker #4: It will be rolling out. But in large part, these are tools. And ultimately, the shorts and everybody else who have been out there saying, “Oh my goodness, this service business is going to be replaced by AI,” don’t know what they’re talking about.

John Wren: Paolo, I don't know if you can add something to it, but yeah, what we're doing is where there are savings, we're sharing them with our clients for sure. We're still in the early stages of this.

Speaker #4: But we're still in the early stages of this.

Speaker #3: Yeah. So hi, Craig. So I think from an AI perspective and more specifically how our platforms are affecting how we deliver work, it's really allowing us to achieve two things from an efficiency perspective.

Paolo Yuvienco: Yeah. Hi, Craig. I think from an AI perspective, and more specifically, how our platforms are affecting how we deliver work, it's really allowing us to achieve two things, from an efficiency perspective and from an effectiveness perspective. From an efficiency, deploying agentic workflows is helping facilitate work in a far more efficient way, driving consistency across the decisioning that we're doing across our platforms in Omnicom. From an effectiveness perspective, because of the underlying assets, the data assets and the identity assets fueling those agentic workflows, it's driving to better results and better outcomes for our clients.

Speaker #4: Plus, the other thing the marketplace hasn't seen is what the cost of this AI is, right? And that's going to weigh into the equation as well.

Speaker #3: And from an effectiveness perspective. So from an efficiency, deploying kind of agentic workflows is helping facilitate work in a far more efficient way. Driving consistency across the decisioning that we're doing across our platforms in Omni.

Speaker #4: So, it's changing every moment. We have the person responsible for it here. Paulo, you can add something to it. But yeah, so what we're doing is, where there are savings, we're sharing them with our clients, for sure.

Speaker #3: And then from an effectiveness perspective, because of the underlying assets, the data assets, and the identity assets, fueling kind of those agentic workflows is driving to better results and better outcomes for our clients.

Speaker #4: But we're still in the early stages of this.

Speaker #3: Yeah, so hi, Craig. I think, from an AI perspective and, more specifically, how our platforms are affecting how we deliver work, it's really allowing us to achieve two things from an efficiency perspective.

Speaker #7: And I would say in large part, any savings clients are driving. They are, in fact, reinvesting immediately into the marketplace because we can also as Paolo mentioned in his comments, we're also focused on measurement and constantly going back to our clients and letting them know what we achieved.

John Wren: I would say in large part, any savings clients are deriving, they are in fact reinvesting immediately into the marketplace because we can also, as Paolo mentioned in his comments, we're also focused on measurement and constantly going back to our clients and letting them know what we achieved.

Speaker #3: And from an effectiveness perspective—so, from an efficiency standpoint—deploying kind of agentic workflows is helping facilitate work in a far more efficient way, driving consistency across the decisioning that we're doing across our platforms in Omni.

Speaker #7: That's it. Thank you.

Speaker #5: Thank you.

Craig Huber: That's it. Thank you.

Speaker #1: Your next question comes from the line of Adrian de Saint-Hilaire from Bank of America. Adrian, please go ahead.

Phil Angelastro: Thank you.

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

Speaker #7: Thank you very much. I've got one fulfilled, please. You talked about the EPS growth being high. Can I just double-check on what is the base that you're actually using?

Speaker #5: And I would say, in large part, any savings clients are deriving, they are in fact reinvesting immediately into the marketplace. Because we can also, as Paulo mentioned in his comments, we're also focused on measurement and constantly going back to our clients and letting them know what we achieved.

Adrien de Saint Hilaire: Thank you very much. I've got one for Phil, please. You talked about the EPS growth being high teens. Can I just double-check on what is the base that you're actually using? Is it the base $70 of non-GAAP EPS that you published last year, or is it something else? Maybe for John, can you talk about the pitching environment just right now? There's been some comments by one of your peer that perhaps one of your other competitor may be aggressively pricing at the minute. Just wanted to know if that's also something that you observed maybe for John or Florian.

Speaker #7: Is it the 870 dollars of non-GAAP EPS that you published last year, or is it something else? And then maybe for John, can you talk about the pitching environment just right now?

Speaker #7: There's been some comments by one of your peer that perhaps one of your other competitors, maybe aggressively pricing at the minute. Just wanted to know if that's also something that you observe maybe for John or Florian.

Speaker #5: That's it. Thank you.

Speaker #2: Thank you.

Speaker #1: Your next question comes from the line of Adrian de Saint-Hilaire from Bank of America. Adrian, please go ahead.

Speaker #5: So just quickly to get this out of the way on the EPS front, Adrian, yeah, the number is, I think it's 865, which is our prior year actual 2025 OmniCom only.

Phil Angelastro: Just quickly to get this out of the way on the EPS front, Adrien. The number is, I think it's 865, which is our prior year actual 2025 Omnicom only, where Omnicom with IPG for the one month of December.

Speaker #5: Thank you very much. I've got one for Phil, please. You talked about the EPS growth being high. Can I just double-check—what is the base that you're actually using?

Speaker #5: Is it the $8.70 of non-GAAP EPS that you published last year, or is it something else? And then maybe for John, can you talk about the pitching environment just right now?

Speaker #5: Where OmniCom with IPG for the one month of December.

Speaker #4: And in terms of the new business, any follow-up to that before I move on to your other question? The new business environment is as brutal as it's ever been.

Speaker #5: There have been some comments from one of your peers that perhaps one of your other competitors may be aggressively pricing at the moment. I just wanted to know if that's also something you've observed, maybe for John or Florian.

John Wren: Any follow-up to that before I move on to your other question? The new business environment is as brutal as it's ever been. We're winning, and we're winning our fair share. We could always win one or two more. Both of our competitors are very capable companies. I think the competition out there that we see makes us better. All right. That's what I take away from not only our wins, but from the accounts that we didn't win. Complaints from other people, I can't speak to anybody else's personal experiences.

Speaker #2: So just quickly, to get this out of the way on the EPS front, Adrian—yeah, the number is, I think, it's 865, which is our prior year actual, 2025 Omnicom only.

Speaker #4: And we're winning. And we're winning our fair share. We could always win one or two more. Both of our competitors are very capable companies.

Speaker #4: And so I think the competition out there that we see makes us better. All right? And that's what I take away from not only our wins, but from the accounts that we didn't win.

Speaker #2: Where is Omnicom compared with IPG for the month of December?

Speaker #4: And in terms of the new business, any follow-up to that before I move on to your other question?

Speaker #5: The new business environment is as brutal as it's ever been. And we're winning. And we're winning our fair share. We could always win one or two more.

Speaker #4: So complaints from other people, I can't speak to anybody else's personal experiences.

Speaker #5: Both of our competitors are very capable companies, and so I think the competition out there that we see makes us better. All right? And that's what I take away from not only our wins, but also from the accounts that we didn't win.

Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

Speaker #5: So, complaints from other people—I can't speak to anybody else's personal experiences.

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