Stagwell Q4 profit beats on Digital Transformation unit strength

Stagwell

10/03/2026 11:23

Overview

Marketing services firm's Q4 revenue slightly beat analyst expectations

Adjusted EPS for Q4 exceeded analyst estimates

Company announced $350 mln increase in stock repurchase program

Outlook

Stagwell forecasts 2026 net revenue growth of 8% to 12%

Company expects 2026 adjusted EBITDA between $475 mln and $525 mln

Stagwell anticipates 2026 adjusted EPS of $0.98 to $1.12

Result Drivers

DIGITAL TRANSFORMATION - Segment saw 13% net revenue growth, contributing to overall revenue increase

MARKETING CLOUD - Delivered 230% YoY net revenue growth, significantly boosting overall results

AI STRATEGY - Strategic pivot towards AI applications and services supported growth

Company press release: ID:nACSKRPxla

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$807 mln
$801.93 mln (8 Analysts)
Q4 Adjusted EPS
Beat
$0.30
$0.27 (7 Analysts)
Q4 EPS
$0.05
Q4 Net Income
$13 mln
Q4 Adjusted EBITDA
Miss
$129 mln
$130.37 mln (8 Analysts)
Q4 Adjusted EBITDA Margin
20.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 52.7% above its March 9 closing price of $5.24

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

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.)