Stagwell Q4 profit beats on Digital Transformation unit strength

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

*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

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