Stagwell beats Q2 revenue estimates, lifts FY adjusted EPS outlook

Overview

• US marketing services firm's Q2 revenue rose 11% yr/yr, beating analyst expectations

• Q2 adjusted EPS grew 39% to $0.25, beating analyst expectations

• Company raised full-year 2026 adjusted EPS guidance

Outlook

• Stagwell raises full-year 2026 adjusted EPS guidance to $1.03-$1.17

• Company reiterates 2026 net revenue growth forecast of 8%-12%

• Stagwell maintains 2026 adjusted EBITDA forecast of $475 mln-$525 mln

Result Drivers

• DIGITAL TRANSFORMATION - Digital Transformation segment organic net revenue grew 18% yr/yr, driving overall growth

• NEW BUSINESS WINS - Record net new business of $171 mln in Q2 contributed to revenue growth

• COST MANAGEMENT - Company said proactive cost controls supported 15% yr/yr growth in adjusted EBITDA

Company press release: ID:nACSZGgrba

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advertising marketing peer group is "buy"

• Wall Street's median 12-month price target for Stagwell Inc is $8.00, about 1% below its July 29 closing price of $8.08

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

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• July 30 - AMC Networks Q2 revenue misses estimates on advertising weakness

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)