Publicis forecasts seventh straight year of outperformance as tech pivot drives growth

Feb 3 (Reuters) – Publicis on Tuesday forecast 4% to 5% organic growth for 2026 after its bet on AI and data services helped it beat full-year sales expectations, widening the French ad giant’s lead over rivals.

The world’s largest ad group by market capitalization reported fourth-quarter organic growth of 5.9%, beating analyst expectations of 5.1%, bringing full-year growth to 5.6%. Net revenue reached 14.5 billion euros ($17.08 billion) for 2025.

The results underscore Publicis’ widening lead in an industry being reshaped by consolidation and artificial intelligence. While British rival WPP warned revenues would fall as much as 6% in 2025 and Omnicom announced 4,000 layoffs following its $13 billion acquisition of Interpublic, Publicis said it grew 7.1% faster than competitors in 2025.

“We have invested 14 billion euros in data and technology, while our two main competitors have invested roughly the same amount in share buybacks,” CEO Arthur Sadoun said.

The company expects its operating margin to rise slightly above its industry-leading 18.2% rate in 2025, with free cash flow projected at around 2.1 billion euros.

Sadoun said Publicis is expanding beyond traditional advertising, which he described as shrinking. The company now offers technology and AI-powered capabilities comparable to firms like Accenture and Capgemini.

“Our addressable market is much larger than that of holding companies,” Sadoun said, explaining the company attracts business by offering clients comprehensive services that extend well beyond the traditional agency model.

Publicis said it won major new contracts in 2025 with Coca-Cola  Mars, PayPal Nespresso, LinkedIn, Santander and Vodafone adding that it retained 98% of its top 100 clients.

Publicis earmarked approximately 900 million euros for acquisitions in 2026, focusing on AI-powered technologies and data assets.