Interpublic reported steady demand from advertisers in the April-June quarter, indicating that brands are keeping their budgets intact despite economic uncertainty. The company said its performance was driven by the media and healthcare units, with additional strength in sports marketing and public relations. The update follows upbeat results from Publicis and Omnicom, pointing to a firmer advertising market in mid-2026.
CEO Philippe Krakowsky credited balanced growth across the core practices and reaffirmed his intention to complete a previously announced merger with Omnicom. Interpublic said the deal is expected to close in the second half of the year, creating what it describes as the world’s largest advertising agency by revenue.
What motivated the quarter
Interpublic highlighted its clients’ sustained spend on media planning and buying, where demand has held up for both brand and performance campaigns. Work on the healthcare sector has also grown, suggesting that regulated sectors continue to prioritize marketing, even as consumer sectors remain cautious.
“Interpublic benefited during the April-June quarter from high spending by its media and healthcare-focused businesses, as well as the growth of its sports marketing and public relations units,” Krakowsky said.
These gains helped offset uneven activity in other categories sensitive to interest rates and retail traffic. The growth in sports-related activations reflects a busy calendar, with global tournaments and domestic leagues attracting sponsors to live events.
Peer signals
Interpublic’s tone matches recent updates from rivals. Publicis, the French advertising group, announced stronger-than-expected revenue growth. Omnicom also reported higher profits thanks to disciplined costs and resilient demand. Together, the three reports suggest that marketers are relying on large holding companies for scale, data and cross-channel execution during turbulent economic times.
Industry management teams have described a similar pattern: stable budgets from large advertisers, more selective spending by smaller brands, and faster growth in healthcare and business-to-business campaigns. This combination supports paid media services and specialized offerings such as public relations and experiential marketing.
Omnicom deal on hold
Interpublic reiterated that it signed a $13.25 billion deal merger agreement with Omnicom last year. The company said it expects the transaction to be completed in the second half of the year, subject to remaining approvals. Management presented the deal as a way to expand core capabilities and be more competitive.
“The company… also said it expects the deal to close in the second half of the year,” Interpublic said.
Executives argued that a larger combined group would offer customers a wider range of services under one roof, while maintaining speed and accountability. Investors will monitor regulatory reviews and integration plans, including the agency’s leadership structure and branding.
Why advertisers spend
Although growth is not uniform across categories, several forces are keeping advertising investments in the market. Major events, a large pipeline of new streaming content and growing healthcare communications needs all support spending. Brands also continue to seek measurable results, pushing media teams to balance reach and performance.
- Media and health campaigns have remained stable or increased.
- Sports marketing and public relations have increased their activity.
- Peers also reported firm spending, suggesting sector-wide resilience.
What to watch next
Analysts are focusing on the second half. The outlook includes a busy sports schedule, new product launches and ongoing rebranding between traditional and digital channels. If consumer confidence falters, big advertisers could still prioritize permanent media, while cutting back on experimental projects.
Interpublic’s guidance on the timing of the merger adds another variable. Closing in the second half would enable integration work to be in place in early 2027. Key issues include cost synergies, customer overlap and talent retention. Competitors could take advantage of the transition period to offer accounts, but the size and data assets could make the merged entity more competitive.
For now, the message from Interpublic, Publicis and Omnicom is clear: advertisers are not going far back. The short-term test will be whether the campaign’s momentum in media and health care offsets potential difficulties elsewhere. If the merger closes on schedule, Interpublic’s next phase could focus on executing on a larger scale while keeping client outcomes at the forefront.
