IPG reports 5.1% revenue decline, gains profit amid Omnicom merger

Interpublic Group (IPG) reported a 5.1% year-on-year decline in revenue for the third quarter of 2025, though profits rose due to cost-cutting measures, including a planned reduction of around 800 employees and the vacation of approximately 135,000 square feet of office space during the quarter ending September 30, 2025.

According to the agency’s Q3 earnings report, client growth was led by the food and beverage, healthcare, financial services, and technology and telecom sectors. In late September, IPG was also selected as the global agency partner for Bayer’s Consumer Health division, handling creative, production, and media duties.

The report attributed the decline in revenue to client losses in the retail and auto and transportation sectors, along with reduced spending from existing clients. Consolidated organic revenue fell 2.9% year-on-year, mainly driven by net client losses in those sectors.

In the domestic market, IPG recorded a 1.5% organic revenue decrease, primarily due to lower revenues in its sports marketing, advertising, digital project-based offerings, and data management and analytics businesses.

Internationally, the company saw revenue declines across all major regions, 8.3% in the UK, 4.2% in Continental Europe, 6.0% in Asia Pacific, and 12.9% in Latin America. These were partially offset by growth in advertising businesses in the Middle East, reported under IPG’s ‘Other’ region.

Meanwhile, the agency’s pending acquisition by Omnicom Group is expected to be completed by the end of November 2025, following the European Union’s final review. The deal has already received approvals from regulators in the United States, the United Kingdom, and Mexico.