Decline in Q2 Revenue for IPG, but Profits Rise in Anticipation of Omnicom Acquisition
Interpublic Group (IPG) is moving forward with its cost-cutting and restructuring efforts ahead of its anticipated acquisition by Omnicom Group, as outlined in a recent company statement.
In the second quarter of 2025, IPG's three largest clients contributed to a 5.5% drag on its organic growth. Despite this, the company expects to exceed its initial objectives for "enterprise re-design, client service delivery enhancements, and ongoing operating efficiencies" as part of its restructuring efforts.
The net revenue for IPG in Q2 2025 was $2.2 billion, a decrease of 6.6% year-over-year. However, the company reaffirmed its full-year guidance of an organic net revenue decline between 1% to 2%.
Quarterly growth was observed in IPG's media and health care sectors in Q2 2025. The company is also launching Agentic Systems for Commerce, a new AI-powered commerce platform being piloted by nearly two dozen global clients.
IPG's restructuring efforts have included workforce reductions, with a 6% decrease in headcount year over year. The company incurred $11 million in costs related to its acquisition by Omnicom Group during Q2 2025.
Despite these challenges, IPG posted a record Q2 adjusted EBITA margin of 18.1%. The FTC has cleared the U.S. for the acquisition of IPG by Omnicom, and Krakowsky stated that the company is "solidly on track to see the transaction completed in the second half of the year."
IPG is also making strides in technology integration, with its Interact AI platform being used daily by 40% of employees. The company incurred $118 million in restructuring charges during Q2 2025, and the adjusted EBITA for IPG in Q2 2025 was $393.7 million.
New business performance in 2025 is showing marked improvement, particularly in the food and beverage, financial services, tech and telecom sectors. The acquisition of IPG by Omnicom Group is ongoing, and the company remains optimistic about its future prospects.
The FTC has also banned politically motivated ad boycotts, which may have implications for IPG's advertising business moving forward.
Despite the 5.5% drag on organic growth from its three largest clients in Q2 2025, Interpublic Group (IPG) remains optimistic about exceeding its objective for restructuring efforts, which include enterprise re-design, client service delivery enhancements, and ongoing operating efficiencies. The company is also anticipating growth in certain sectors such as finance, technology, and food and beverage, due to improvements in new business performance. Additionally, IPG is making strides in technology integration with its Interact AI platform and the launch of Agentic Systems for Commerce, an AI-powered commerce platform.
