filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
OMNICOM GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS: | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 4,288.1 | $ | 6,881.1 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of $10.0 and $11.9 | 12,566.2 | 14,398.0 | |||||||||
| Work in process | 3,721.4 | 3,408.9 | |||||||||
| Assets held for sale | 711.6 | 1,012.2 | |||||||||
| Other current assets | 1,899.0 | 1,765.2 | |||||||||
| Total Current Assets | 23,186.3 | 27,465.4 | |||||||||
| Property and Equipment at cost, less accumulated depreciation of $1,256.2 and $1,386.8 | 1,004.6 | 1,010.3 | |||||||||
| Operating Lease Right-Of-Use Assets | 1,291.7 | 1,379.8 | |||||||||
| Equity Method Investments | 58.6 | 65.9 | |||||||||
| Goodwill | 18,733.9 | 18,641.4 | |||||||||
| Intangible Assets, net of accumulated amortization of $1,014.2 and $903.2 | 4,945.2 | 5,101.0 | |||||||||
| Other Assets | 744.4 | 751.5 | |||||||||
| TOTAL ASSETS | $ | 49,964.7 | $ | 54,415.3 | |||||||
| LIABILITIES AND EQUITY: | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 18,108.6 | $ | 20,659.5 | |||||||
| Customer advances | 1,954.0 | 1,727.6 | |||||||||
| Current portion of debt | — | 1,399.5 | |||||||||
| Short-term debt | 67.4 | 62.0 | |||||||||
| Taxes payable | 341.4 | 264.9 | |||||||||
| Liabilities held for sale | 972.3 | 1,261.0 | |||||||||
| Other current liabilities | 3,972.4 | 4,163.7 | |||||||||
| Total Current Liabilities | 25,416.1 | 29,538.2 | |||||||||
| Long-Term Liabilities | 1,223.8 | 1,099.5 | |||||||||
| Long-Term Liability - Operating Leases | 1,471.7 | 1,617.0 | |||||||||
| Long-Term Debt | 9,977.5 | 7,655.0 | |||||||||
| Deferred Tax Liabilities | 1,460.3 | 1,449.4 | |||||||||
| Commitments and Contingent Liabilities (Note 13) | |||||||||||
| Temporary Equity - Redeemable Noncontrolling Interests | 343.2 | 363.2 | |||||||||
| Equity: | |||||||||||
| Shareholders’ Equity: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 63.2 | 63.2 | |||||||||
| Additional paid-in capital | 8,979.3 | 9,424.4 | |||||||||
| Retained earnings | 10,959.3 | 10,782.4 | |||||||||
| Accumulated other comprehensive income (loss) | (1,313.9) | (1,265.8) | |||||||||
| Treasury stock, at cost | (9,250.8) | (6,958.4) | |||||||||
| Total Shareholders’ Equity | 9,437.1 | 12,045.8 | |||||||||
| Noncontrolling interests | 635.0 | 647.2 | |||||||||
| Total Equity | 10,072.1 | 12,693.0 | |||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 49,964.7 | $ | 54,415.3 |
The accompanying notes to the consolidated financial statements are an integral part of these statements.
OMNICOM GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In millions, except per share amounts)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenue | $ | 6,242.9 | $ | 3,690.4 | |||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||
| Salary and service costs | 4,639.6 | 2,746.3 | |||||||||||||||||||||
| Occupancy and other costs | 527.3 | 314.6 | |||||||||||||||||||||
| Severance and repositioning costs | 4.1 | — | |||||||||||||||||||||
| Loss on assets held for sale and dispositions | 34.3 | — | |||||||||||||||||||||
| Cost of services | 5,205.3 | 3,060.9 | |||||||||||||||||||||
| Selling, general and administrative expenses | 224.5 | 117.9 | |||||||||||||||||||||
| Depreciation and amortization | 166.9 | 59.0 | |||||||||||||||||||||
| Total Operating Expenses | 5,596.7 | 3,237.8 | |||||||||||||||||||||
| Operating Income | 646.2 | 452.6 | |||||||||||||||||||||
| Interest Expense | 119.0 | 59.1 | |||||||||||||||||||||
| Interest Income | 47.0 | 29.7 | |||||||||||||||||||||
| Income Before Income Taxes and Income (Loss) From Equity Method Investments | 574.2 | 423.2 | |||||||||||||||||||||
| Income Tax Expense | 154.6 | 120.7 | |||||||||||||||||||||
| Income (Loss) From Equity Method Investments | (0.9) | 0.9 | |||||||||||||||||||||
| Net Income | 418.7 | 303.4 | |||||||||||||||||||||
| Net Income Attributed To Noncontrolling Interests | 13.5 | 15.7 | |||||||||||||||||||||
| Net Income - Omnicom Group Inc. | $ | 405.2 | $ | 287.7 | |||||||||||||||||||
| Net Income Per Share - Omnicom Group Inc.: | |||||||||||||||||||||||
| Basic | $ | 1.36 | $ | 1.46 | |||||||||||||||||||
| Diluted | $ | 1.35 | $ | 1.45 | |||||||||||||||||||
| Weighted Average Shares: | |||||||||||||||||||||||
| Basic | 298.1 | 196.7 | |||||||||||||||||||||
| Diluted | 299.2 | 198.3 |
The accompanying notes to the consolidated financial statements are an integral part of these statements.
OMNICOM GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net Income | $ | 418.7 | $ | 303.4 | |||||||||||||||||||
| Other Comprehensive Income (Loss): | |||||||||||||||||||||||
| Cash flow hedge: | |||||||||||||||||||||||
| Amortization of loss included in interest expense | 1.3 | 1.4 | |||||||||||||||||||||
| Income tax effect | (0.4) | (0.4) | |||||||||||||||||||||
| Cash flow hedge, net of tax | 0.9 | 1.0 | |||||||||||||||||||||
| Pension and other postemployment benefits: | |||||||||||||||||||||||
| Amortization of prior service cost | 1.8 | 1.7 | |||||||||||||||||||||
| Amortization of actuarial losses | (0.6) | 0.5 | |||||||||||||||||||||
| Income tax effect | 2.3 | (1.8) | |||||||||||||||||||||
| Pension plans and other postemployment benefits, net of tax | 3.5 | 0.4 | |||||||||||||||||||||
| Foreign currency translation adjustment | (55.9) | 83.7 | |||||||||||||||||||||
| Other Comprehensive Income (Loss) | (51.5) | 85.1 | |||||||||||||||||||||
| Comprehensive Income | 367.2 | 388.5 | |||||||||||||||||||||
| Comprehensive Income Attributed To Noncontrolling Interests | 10.1 | 20.7 | |||||||||||||||||||||
| Comprehensive Income - Omnicom Group Inc. | $ | 357.1 | $ | 367.8 |
The accompanying notes to the consolidated financial statements are an integral part of these statements.
OMNICOM GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(In millions, except per share amounts)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Common Stock, shares | 421.6 | 297.2 | |||||||||||||||||||||
| Common Stock, par value | $ | 63.2 | $ | 44.6 | |||||||||||||||||||
| Additional Paid In Capital: | |||||||||||||||||||||||
| Beginning Balance | 9,424.4 | 472.1 | |||||||||||||||||||||
| Net change in noncontrolling interests | 8.2 | (1.4) | |||||||||||||||||||||
| Change in temporary equity | 18.0 | (0.1) | |||||||||||||||||||||
| Share-based compensation | 27.1 | 20.8 | |||||||||||||||||||||
| Accelerated share repurchase forward agreements | (500.0) | — | |||||||||||||||||||||
| Stock issued, share-based compensation | 1.6 | 4.0 | |||||||||||||||||||||
| Ending Balance | 8,979.3 | 495.4 | |||||||||||||||||||||
| Retained Earnings: | |||||||||||||||||||||||
| Beginning Balance | 10,782.4 | 11,500.5 | |||||||||||||||||||||
| Net income | 405.2 | 287.7 | |||||||||||||||||||||
| Common stock dividends declared | (228.3) | (137.8) | |||||||||||||||||||||
| Ending Balance | 10,959.3 | 11,650.4 | |||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss): | |||||||||||||||||||||||
| Beginning Balance | (1,265.8) | (1,475.9) | |||||||||||||||||||||
| Other comprehensive income (loss) | (48.1) | 80.1 | |||||||||||||||||||||
| Ending Balance | (1,313.9) | (1,395.8) | |||||||||||||||||||||
| Treasury Stock: | |||||||||||||||||||||||
| Beginning Balance | (6,958.4) | (6,347.8) | |||||||||||||||||||||
| Stock issued, share-based compensation | 13.0 | 7.9 | |||||||||||||||||||||
| Common stock repurchased | (2,305.4) | (81.5) | |||||||||||||||||||||
| Ending Balance | (9,250.8) | (6,421.4) | |||||||||||||||||||||
| Shareholders' Equity | 9,437.1 | 4,373.2 | |||||||||||||||||||||
| Noncontrolling Interests: | |||||||||||||||||||||||
| Beginning Balance | 647.2 | 552.4 | |||||||||||||||||||||
| Net income | 13.5 | 15.7 | |||||||||||||||||||||
| Other comprehensive income | (3.4) | 5.0 | |||||||||||||||||||||
| Dividends to noncontrolling interests | (12.1) | (13.0) | |||||||||||||||||||||
| Net change in noncontrolling interests | (10.2) | 0.4 | |||||||||||||||||||||
| Ending Balance | 635.0 | 560.5 | |||||||||||||||||||||
| Total Equity | $ | 10,072.1 | $ | 4,933.7 | |||||||||||||||||||
| Dividends Declared Per Common Share | $ | 0.80 | $ | 0.70 |
The accompanying notes to the consolidated financial statements are an integral part of these statements.
OMNICOM GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash Flows From Operating Activities: | |||||||||||
| Net income | $ | 418.7 | $ | 303.4 | |||||||
| Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
| Depreciation and amortization of right-of-use assets | 49.5 | 33.2 | |||||||||
| Amortization of intangible assets | 117.4 | 25.8 | |||||||||
| Share-based compensation | 27.1 | 20.8 | |||||||||
| Severance and repositioning costs | 4.1 | — | |||||||||
| Loss on assets held for sale and dispositions | 34.3 | — | |||||||||
| Other, net | 5.8 | 3.3 | |||||||||
| Use of operating capital | (1,210.1) | (1,173.3) | |||||||||
| Net Cash Used In Operating Activities | (553.2) | (786.8) | |||||||||
| Cash Flows From Investing Activities: | |||||||||||
| Capital expenditures | (61.2) | (29.5) | |||||||||
| Proceeds from assets held for sale | 152.5 | — | |||||||||
| Other, net | (7.1) | 42.2 | |||||||||
| Net Cash Provided By Investing Activities | 84.2 | 12.7 | |||||||||
| Cash Flows From Financing Activities: | |||||||||||
| Proceeds from borrowings | 2,384.9 | — | |||||||||
| Repayment of debt | (1,400.0) | — | |||||||||
| Change in short-term debt | 7.4 | (3.2) | |||||||||
| Dividends paid to common shareholders | (251.7) | (137.7) | |||||||||
| Repurchases of common stock | (2,777.6) | (81.0) | |||||||||
| Proceeds from stock plans | 15.8 | 11.5 | |||||||||
| Acquisition of additional noncontrolling interests | (13.5) | (0.4) | |||||||||
| Dividends paid to noncontrolling interest shareholders | (12.1) | (13.0) | |||||||||
| Payment of contingent purchase price obligations | (2.8) | (2.8) | |||||||||
| Other, net | (15.7) | (14.8) | |||||||||
| Net Cash Used In Financing Activities | (2,065.3) | (241.4) | |||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | (58.7) | 54.4 | |||||||||
| Net Decrease in Cash and Cash Equivalents | (2,593.0) | (961.1) | |||||||||
| Cash and Cash Equivalents at the Beginning of Period | 6,881.1 | 4,339.4 | |||||||||
| Cash and Cash Equivalents at the End of Period | $ | 4,288.1 | $ | 3,378.3 |
The accompanying notes to the consolidated financial statements are an integral part of these statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Presentation of Financial Statements
The terms “Omnicom,” “the Company,” “we”, “our” and “us” each refer to Omnicom Group Inc. and its subsidiaries, unless the context indicates otherwise. The accompanying unaudited consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP or GAAP, for interim financial information and Article 10 of Regulation S-X of the Securities and Exchange Commission, or SEC. Accordingly, certain information and footnote disclosures have been condensed or omitted. All intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. Unless otherwise noted, dollars in tables are in millions, except per share amounts.
In our opinion, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation, in all material respects, of the information contained herein. These unaudited consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 10-K"). Results for the interim periods are not necessarily indicative of results that may be expected for the year.
Merger with IPG
On November 26, 2025 (the “Closing Date”), Omnicom completed its merger (the "Merger") with The Interpublic Group of Companies, Inc. ("IPG"). Omnicom is the acquirer of IPG under U.S. GAAP and as a result, the consolidated financial statements of Omnicom for periods prior to the Closing Date do not include the results of operations, financial position, or cash flows of IPG. The results of operations of IPG are included in Omnicom’s consolidated financial statements only from the Closing Date forward. Accordingly, Omnicom’s financial results, the effects on financial condition and cash flow are not comparable to historical periods due to the inclusion of IPG’s results from the Closing Date, see Note 5 to the consolidated financial statements for more information related to the Merger.
For the three months ended March 31, 2026, we recorded $59.4 million of integration and acquisition related costs related to the Merger in selling, general and administrative expenses. For the three months ended March 31, 2025, we recorded $33.8 million of acquisition related costs.
Risks and Uncertainties
Global economic disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in our major markets, and labor or supply chain challenges, could contribute to economic uncertainty and volatility. The impact of these conditions on our business may vary by geographic market and service discipline. We monitor macroeconomic conditions, client revenue levels, and other relevant factors and may take actions to align our cost structure with changes in client demand and to manage working capital. However, there can be no assurance that such actions will be sufficient to mitigate the effects of adverse economic conditions, reductions in client spending, changes in client creditworthiness, or other developments.
2. Revenue
Nature of our services
We provide data-driven, creative marketing and sales solutions through client-centric networks organized to meet specific client objectives. On a global, pan-regional, and local basis, our agencies provide a comprehensive range of services across our fundamental disciplines. Beginning in 2026, we realigned our disciplines as follows and as described below: Integrated Media, Advertising, Health, Public Relations, and Experiential & Other. The classification of certain services and prior period amounts have been reclassified to conform to the current period presentation.
Integrated Media includes strategic media planning and buying, performance media and audience-based solutions, as well as digital commerce and data and identity solutions. It also includes proprietary data, analytics, and precision marketing capabilities and automated content delivery solutions. Advertising includes creative, brand development, and integrated advertising services across digital and traditional channels, supporting clients' brand strategy and communications needs. Health includes specialized medical communications, market access strategy and other services to global health and pharmaceutical companies. Public Relations services include corporate communications, crisis management, public affairs, and media relations services. Experiential & Other includes experiential design and execution, live and digital events, and entertainment and sports marketing, as well as consulting, branding, and design services. It also includes field marketing, merchandising, custom communications and training, and other specialized marketing and support services.
Revenue by discipline:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Integrated Media | $ | 2,978.4 | $ | 1,805.4 | |||||||||||||||||||
| Advertising | 1,060.2 | 674.6 | |||||||||||||||||||||
| Public Relations | 696.6 | 359.1 | |||||||||||||||||||||
| Health | 585.7 | 299.0 | |||||||||||||||||||||
| Experiential & Other | 922.0 | 552.3 | |||||||||||||||||||||
| Revenue****1 | $ | 6,242.9 | $ | 3,690.4 |
- Revenue for the three months ended March 31, 2026, includes amounts attributable to disposals or entities classified as held for sale, consisting of $627.2 million.
Economic factors affecting our revenue
Global economic conditions and disruptions directly impact our revenue. Adverse economic conditions and disruptions pose a risk that our clients may reduce, postpone, or cancel spending for our services, which would impact our revenue.
Revenue by geographic market:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Americas: | |||||||||||||||||||||||
| North America | $ | 3,885.1 | $ | 2,111.5 | |||||||||||||||||||
| Latin America | 196.1 | 96.4 | |||||||||||||||||||||
| EMEA: | |||||||||||||||||||||||
| Europe | 1,439.0 | 995.0 | |||||||||||||||||||||
| Middle East and Africa | 144.2 | 70.8 | |||||||||||||||||||||
| Asia-Pacific | 578.5 | 416.7 | |||||||||||||||||||||
| Revenue****1 | $ | 6,242.9 | $ | 3,690.4 |
- Revenue for the three months ended March 31, 2026, includes amounts attributable to disposals or entities classified as held for sale, consisting of $627.2 million.
The Americas is comprised of North America, which includes the United States, Canada and Puerto Rico, and Latin America, which includes South America and Mexico. EMEA is comprised of Europe, the Middle East and Africa. Asia-Pacific includes Australia, Greater China, India, Japan, Korea, New Zealand, Singapore and other Asian countries. Revenue in the United States for the three months ended March 31, 2026 and 2025 was $3,688.0 million and $2,007.0 million, respectively.
Contract balances
Contract balances include work in process and customer advances that primarily consist of advance billings to customers in accordance with the terms of the client contracts, primarily for the reimbursement of third-party costs.
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||
| Work in process: | |||||||||||||||||
| Media and production costs | $ | 1,969.5 | $ | 2,200.1 | $ | 899.2 | |||||||||||
| Unbilled fees and costs and contract assets | 1,751.9 | 1,208.8 | 1,031.0 | ||||||||||||||
| Work in process | $ | 3,721.4 | $ | 3,408.9 | $ | 1,930.2 | |||||||||||
| Customer advances | $ | 1,954.0 | $ | 1,727.6 | $ | 1,283.5 |
There were no impairment charges recorded in work in process in the three months ended March 31, 2026 and 2025.
The majority of our contracts are for periods of one year or less, with the exception of our data management contracts. For those contracts with a term of more than one year, we had approximately $425.4 million of unsatisfied performance obligations as of March 31, 2026, which will be recognized as services are performed over the remaining contractual terms through 2030.
3. Net Income per Share
Basic and diluted net income per share:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net Income - Omnicom Group Inc. | $ | 405.2 | $ | 287.7 | |||||||||||||||||||
| Weighted Average Shares (millions): | |||||||||||||||||||||||
| Basic | 298.1 | 196.7 | |||||||||||||||||||||
| Dilutive stock options and restricted shares | 1.1 | 1.6 | |||||||||||||||||||||
| Diluted | 299.2 | 198.3 | |||||||||||||||||||||
| Anti-dilutive stock options and restricted shares (millions) | 8.0 | 1.1 | |||||||||||||||||||||
| Net Income per Share - Omnicom Group Inc.: | |||||||||||||||||||||||
| Basic | $1.36 | $1.46 | |||||||||||||||||||||
| Diluted | $1.35 | $1.45 |
The number of potential shares of common stock excluded from diluted shares outstanding was 8.0 million and 1.1 million for the three months ended March 31, 2026 and 2025, respectively, because the effect of including those shares of common stock in the calculation would have been anti-dilutive.
The increase in our weighted average shares in 2026 is a result of the inclusion of outstanding shares issued in connection with the acquisition of IPG, see Note 5 to the consolidated financial statements.
4. Goodwill and Intangible Assets
Change in goodwill:
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| January 1 | $ | 18,641.4 | $ | 10,677.4 | ||||||||||
| Acquisitions* | 118.1 | 2.4 | ||||||||||||
| Noncontrolling interests in acquired businesses | 17.0 | 2.5 | ||||||||||||
| Contingent purchase price obligations of acquired businesses | 13.5 | 2.4 | ||||||||||||
| Dispositions | (7.8) | (20.6) | ||||||||||||
| Foreign currency translation | (48.3) | 117.4 | ||||||||||||
| March 31 | $ | 18,733.9 | $ | 10,781.5 |
*The increase in goodwill in the three months ended March 31, 2026 is primarily attributable to adjustments to the preliminary purchase price accounting for the IPG acquisition in November 2025 (see Note 5 to the consolidated financial statements). There were no goodwill impairment charges recorded in the three months ended March 31, 2026 and 2025, and there are no accumulated goodwill impairment charges.
Intangible assets:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||||||||||||||
| Trade Names | $ | 926.0 | $ | (96.4) | $ | 829.6 | $ | 929.9 | $ | (76.5) | $ | 853.4 | |||||||||||||||||||||||
| Customer Relationships | 4,374.0 | (578.2) | 3,795.8 | 4,389.5 | (504.1) | 3,885.4 | |||||||||||||||||||||||||||||
| Technology and Other | 355.6 | (94.3) | 261.3 | 409.2 | (79.6) | 329.6 | |||||||||||||||||||||||||||||
| Acquired intangible assets and internally developed strategic platform assets | $ | 5,655.6 | $ | (768.9) | $ | 4,886.7 | $ | 5,728.6 | $ | (660.2) | $ | 5,068.4 | |||||||||||||||||||||||
| Other purchased and internally developed software | 303.8 | (245.3) | 58.5 | 275.6 | (243.0) | 32.6 | |||||||||||||||||||||||||||||
| Intangible Assets | $ | 5,959.4 | $ | (1,014.2) | $ | 4,945.2 | $ | 6,004.2 | $ | (903.2) | $ | 5,101.0 |
Amortization of intangible assets:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Acquired intangible assets and internally developed strategic platform assets | $ | 110.9 | $ | 21.8 | |||||||||||||||||||
| Other purchased and internally developed software | 6.5 | 4.0 | |||||||||||||||||||||
| Amortization Expense | $ | 117.4 | $ | 25.8 |
5. Business Combinations
On November 26, 2025, we completed the Merger (see Note 1 to the consolidated financial statements). The acquisition combines complementary capabilities and service offerings and is expected to expand client opportunities and support long-term growth.
Purchase Consideration
Pursuant to the Merger Agreement, the 361,498,876 shares of IPG common stock (the “IPG common stock”) (par value $0.10 per share) that were issued and outstanding immediately prior to the Merger were converted into 124,352,188 shares of Omnicom common stock (par value $0.15 per share) and cash in lieu of fractional shares, based on an exchange ratio (the “Exchange Ratio”) of 0.344 shares of Omnicom common stock for each share of IPG common stock. Following the close of the Merger, legacy Omnicom shareholders owned approximately 60.6% of the combined company, and legacy IPG shareholders owned approximately 39.4%, on a fully diluted basis.
The total consideration paid at closing was $8,893.5 million, consisting of primarily equity consideration of $8,891.2 million, excluding debt assumed in connection with Omnicom's offer to exchange all outstanding notes of certain series issued by the IPG. The following table summarizes the purchase consideration:
| Fair value of shares issued to IPG shareholders1 | $8,891.2 | ||||
| Cash paid for fractional shares | $0.3 | ||||
| Fair value of equity awards2 | $2.0 | ||||
| Total Consideration | $8,893.5 |
-
The fair value of shares issued reflects the number of IPG shares outstanding at the Closing Date multiplied by the Exchange Ratio and Omnicom’s closing share price on the Closing Date.
-
Represents the fair value of director awards that were settled as part of the closing consideration through the issuance of shares and assumed stock option awards.
Preliminary Purchase Price Allocation
The following table summarizes the preliminary fair values of the tangible and identifiable assets acquired and liabilities assumed as of the Closing Date:
| Cash and Cash equivalents | $1,080.6 | Accounts payable | $7,065.4 | |||||||||||
| Accounts receivable | 5,753.5 | Customer advances | 715.8 | |||||||||||
| Work in process | 2,227.6 | Short-term debt | 42.4 | |||||||||||
| Assets held for sale | 264.7 | Liabilities held for sale | 106.5 | |||||||||||
| Other current Assets | 571.6 | Other current liabilities | 1,673.8 | |||||||||||
| Property and equipment | 251.6 | Long-term liabilities | 432.7 | |||||||||||
| Operating lease right-of-use assets | 597.9 | Long-term liability - operating leases | 876.4 | |||||||||||
| Equity Method Investments | 41.8 | Long-term debt | 2,764.9 | |||||||||||
| Intangible assets | 4,591.4 | Deferred tax liabilities, net | 1,093.4 | |||||||||||
| Other Assets | 701.3 | Non-controlling interests | 211.7 | |||||||||||
| Total Assets | $16,082.0 | Redeemable non-controlling interest | 11.2 | |||||||||||
| Total Liabilities and Non-controlling interest | $14,994.2 | |||||||||||||
| Fair value of net assets acquired | $1,087.8 | |||||||||||||
| Goodwill | 7,805.7 | |||||||||||||
| Total Consideration | $8,893.5 |
The purchase accounting process has not been completed as of March 31, 2026, including the finalization of the purchase price allocation. The Company has not yet finalized the valuation of certain assets acquired and liabilities assumed, including identifiable intangible assets. The preliminary fair values of identifiable assets as of March 31, 2026 include Trade names of $792.0 million, Customer relationships of $3,616.0 million, and Technology and other of $183.4 million. During the first quarter, the adjustments to goodwill related primarily to the updates of the fair value of acquired software and deferred taxes. The purchase price allocation may be adjusted during the measurement period, which will not exceed one year from the Closing Date.
Integration and Acquisition-Related Costs
During the three months ended March 31, 2026 and 2025, the Company incurred approximately $59.4 million of integration and acquisition related costs and $33.8 million of acquisition related costs associated primarily with the acquisition of IPG. These costs consist mainly of third-party professional fees and were recorded within selling, general and administrative expenses in the consolidated statements of income. The Company may incur additional integration and acquisition-related costs in the future related to the acquisition of IPG.
6. Debt
Credit Facility
On November 26, 2025, the Company entered into a Fourth Amended and Restated Five Year Credit Agreement (the “Credit Agreement Amendment”), which amended and restated the Company’s Third Amended and Restated Five Year Credit Agreement, dated as of June 2, 2023. The Credit Agreement Amendment, among other things, (i) increased the unsecured multi-currency revolving credit facility (the “Credit Facility”) amount from $2.5 billion to $3.5 billion, (ii) reduced the facility fee and applicable margin, (iii) extended the termination date (with respect to the available commitments of the extending lenders) from June 2, 2028 to November 26, 2030 and (iv) designated Omnicom as sole borrower under the Credit Facility.
We can issue up to $3.0 billion of U.S. Dollar denominated commercial paper under a U.S. commercial paper program, and issue up to the equivalent of $500 million in British Pounds, Euro, or U.S. Dollars under a Euro commercial paper program. In addition, certain of our international subsidiaries have uncommitted credit lines that are guaranteed by Omnicom, aggregating $1,124.5 million. All of these facilities provide additional liquidity sources for operating capital and general corporate purposes. During the three months ended March 31, 2026, we issued commercial paper and the average and maximum amounts outstanding during the quarter were $261.8 million and $632.6 million, respectively. There were no issuances of commercial paper for the three months ended March 31, 2025. At both March 31, 2026 and 2025, there were no outstanding commercial paper issuances.
The Credit Facility has a financial covenant that requires us to maintain a Leverage Ratio (as defined in the Credit Facility) of consolidated indebtedness to consolidated EBITDA (earnings before interest, taxes, depreciation, amortization and non-cash charges) of no more than 3.5 times for the most recently ended 12-month period. At March 31, 2026, we were in compliance with this covenant as our Leverage Ratio, computed in accordance with the terms of the facility, was 2.5 times. The Credit Facility does not limit our ability to declare or pay dividends or repurchase our common stock.
Short-Term Debt
Short-term debt of $67.4 million and $62.0 million at March 31, 2026 and December 31, 2025, respectively, represented bank overdrafts and short-term borrowings primarily of our international subsidiaries.
Long-Term Debt
Long-term debt:
| March 31, 2026 | December 31, 2025 | ||||||||||
| 3.600% Senior Notes due 2026 | $ | — | $ | 1,400.0 | |||||||
| €500 million 0.800% Senior Notes due 2027 | 575.5 | 588.7 | |||||||||
| 4.650% Senior Notes (Exchange/IPG) due 2028 | 500.0 | 500.0 | |||||||||
| 4.200% Senior Notes due 2029 | 400.0 | — | |||||||||
| 2.450% Senior Notes due 2030 | 600.0 | 600.0 | |||||||||
| 4.200% Senior Notes due 2030 | 600.0 | 600.0 | |||||||||
| 4.750% Senior Notes (Exchange/IPG) due 2030 | 650.0 | 650.0 | |||||||||
| €500 million 1.400% Senior Notes due 2031 | 575.5 | 588.7 | |||||||||
| 2.400% Senior Notes (Exchange/IPG) due 2031 | 500.0 | 500.0 | |||||||||
| 2.600% Senior Notes due 2031 | 800.0 | 800.0 | |||||||||
| €600 million 3.700% Senior Notes due 2032 | 690.5 | 706.4 | |||||||||
| £325 million 2.250% Senior Notes due 2033 | 430.9 | 439.1 | |||||||||
| 5.000% Senior Notes due 2033 | 700.0 | — | |||||||||
| 5.375% Senior Notes (Exchange/IPG) due 2033 | 300.0 | 300.0 | |||||||||
| €600 million 3.850% Euro Notes due 2034 | 690.5 | — | |||||||||
| 5.300% Senior Notes due 2034 | 600.0 | 600.0 | |||||||||
| 5.300% Senior Note due 2036 | 600.0 | — | |||||||||
| 3.375% Senior Notes (Exchange/IPG) due 2041 | 500.0 | 500.0 | |||||||||
| 5.400% Senior Notes (Exchange/IPG) due 2048 | 500.0 | 500.0 | |||||||||
| Long-Term Debt, Gross | 10,212.9 | 9,272.9 | |||||||||
| Unamortized discount | (192.7) | (192.3) | |||||||||
| Unamortized debt issuance costs | (42.7) | (25.9) | |||||||||
| Unamortized deferred loss from settlement of interest rate swap | — | (0.2) | |||||||||
| Long-Term Debt, including current portion | 9,977.5 | 9,054.5 | |||||||||
| Current portion | — | (1,399.5) | |||||||||
| Long-Term Debt | $ | 9,977.5 | $ | 7,655.0 |
On March 2, 2026, Omnicom closed its public offering of $400 million aggregate principal amount of 4.200% Senior Notes due 2029, $700 million aggregate principal amount of 5.000% Senior Notes due 2033 and $600 million aggregate principal amount of 5.300% Senior Notes due 2036. In addition, on March 2, 2026, Omnicom Finance Holdings plc, a U.K.-based wholly-owned subsidiary of Omnicom ("OFH") closed its public offering of €600 million aggregate principal amount of 3.850% Senior Notes due 2034, which are fully and unconditionally guaranteed by Omnicom. Omnicom used a portion of the net proceeds of these offerings to repay its $1.4 billion 3.600% Senior Notes due 2026, which were fully redeemed at par on March 13, 2026. Omnicom intends to use the remaining proceeds for general corporate purposes.
Omnicom fully and unconditionally guaranteed the obligations of OFH, with respect to the €500 million 0.80% Senior Notes due 2027, the €500 million 1.40% Senior Notes due 2031, the €600 million 3.70% Senior Notes due 2032, and the €600 million 3.850% Senior Notes due 2034 (collectively the "Euro Notes"). OFH’s assets consist of its investments in several wholly owned finance companies that function as treasury centers, providing funding for various operating companies in Europe, Australia, and other countries in the Asia-Pacific region. The finance companies’ assets consist of cash and cash equivalents and intercompany loans that they make or have made to the operating companies in their respective regions and the related interest receivable. There are no restrictions on the ability of Omnicom or OFH to obtain funds from their subsidiaries through dividends, loans, or advances. The Euro Notes and the related guarantees are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness of OFH and Omnicom, respectively.
Omnicom has fully and unconditionally guaranteed the obligations of Omnicom Capital Holdings plc, or OCH, a U.K.-based wholly owned subsidiary of Omnicom, with respect to the £325 million aggregate principal amount of 2.25% Senior Notes due 2033 (the "Sterling Notes"). OCH’s assets consist of its investments in several wholly owned finance companies that function as treasury centers, providing funding for various operating companies in EMEA, Australia, and other countries in the Asia-Pacific region. The finance companies’ assets consist of cash and cash equivalents and intercompany loans that they make or have made to the operating companies in their respective regions and the related interest receivable. There are no restrictions on the ability of Omnicom or OCH to obtain funds from their subsidiaries through dividends, loans, or advances. The Sterling Notes and the related
guarantee are senior unsecured obligations that rank equal in right of payment with all existing and future unsecured senior indebtedness of OCH and Omnicom, respectively.
7. Segment Reporting
Our branded agency networks operate in the advertising, marketing and corporate communications services industry, and are organized into agency networks, virtual client networks, regional reporting units and operating groups or connected capabilities. Our networks, virtual client networks and agencies increasingly share clients and provide clients with integrated services. The main economic components of each agency are employee compensation and related costs, direct service costs and occupancy and other costs which include rent and occupancy costs, technology costs and overhead expenses. Therefore, given these similarities, we aggregate our four operating segments, which are our global agency networks, into one reporting segment. The chief operating decision maker, or CODM, reviews segment operating income for each network and allocates resources accordingly. Beginning in December of 2025, we integrated the newly acquired IPG businesses into our existing four networks. The CODM includes Omnicom’s chief executive officer, chief financial officer and chief operating officer.
Segment operating results include allocations of costs, including information technology, and other shared services costs, that are allocated using metrics designed to correlate the allocation with consumption.
Segment revenue, segment operating expenses and segment operating income of our operating segments:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Revenue | $ | 6,242.9 | $ | 3,690.4 | |||||||||||||||||||
| Segment Operating Expenses: | |||||||||||||||||||||||
| Salary and service costs: | |||||||||||||||||||||||
| Salary and related costs | $ | 3,061.6 | $ | 1,780.5 | |||||||||||||||||||
| Third-party service costs | 1,365.7 | 796.8 | |||||||||||||||||||||
| Third-party incidental costs | 212.3 | 169.0 | |||||||||||||||||||||
| Total salary and service costs | 4,639.6 | 2,746.3 | |||||||||||||||||||||
| Occupancy and other costs | 527.3 | 314.6 | |||||||||||||||||||||
| Segment cost of services | 5,166.9 | 3,060.9 | |||||||||||||||||||||
| Selling, general and administrative expenses | 165.1 | 84.1 | |||||||||||||||||||||
| Depreciation and amortization | 166.9 | 59.0 | |||||||||||||||||||||
| Total segment operating expenses | 5,498.9 | 3,204.0 | |||||||||||||||||||||
| Segment Operating Income | $ | 744.0 | $ | 486.4 |
Reconciliation of segment operating income to income before income taxes and income (loss) from equity method investments:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Segment Operating Income | $ | 744.0 | $ | 486.4 | |||||||||||||||||||
| Severance and repositioning costs | 4.1 | — | |||||||||||||||||||||
| Loss on assets held for sale and dispositions | 34.3 | — | |||||||||||||||||||||
| Integration and acquisition related costs | 59.4 | 33.8 | |||||||||||||||||||||
| Operating Income | 646.2 | 452.6 | |||||||||||||||||||||
| Interest Expense | 119.0 | 59.1 | |||||||||||||||||||||
| Interest Income | 47.0 | 29.7 | |||||||||||||||||||||
| Income Before Income Taxes and Income (Loss) From Equity Method Investments | $ | 574.2 | $ | 423.2 |
We reconcile segment operating income to income before income taxes and income (loss) from equity method investments as income tax expense is reviewed at the consolidated level and the segment managers are not held accountable for performance of net income.
The agency networks' regional reporting units comprise three principal regions: the Americas, EMEA and Asia-Pacific. The regional reporting units monitor the performance and are responsible for the agencies in their region. Agencies within the regional reporting units serve similar clients in similar industries and, in many cases, the same clients and have similar economic characteristics.
Revenue and long-lived assets and goodwill by geographic region:
| Americas | EMEA | Asia-Pacific | |||||||||||||||
| March 31, 2026 | |||||||||||||||||
| Revenue - Three months ended | $ | 4,081.2 | $ | 1,583.2 | $ | 578.5 | |||||||||||
| Long-lived assets and goodwill | $ | 16,082.8 | $ | 4,170.1 | $ | 777.3 | |||||||||||
| March 31, 2025 | |||||||||||||||||
| Revenue - Three months ended | $ | 2,207.9 | $ | 1,065.8 | $ | 416.7 | |||||||||||
| Long-lived assets and goodwill | $ | 8,135.0 | $ | 3,813.2 | $ | 691.1 |
8. Income Taxes
Our effective tax rate for the first quarter of 2026 was 26.9% compared to 28.5% for the first quarter of 2025. The decrease was primarily due to the non-deductibility of certain integration and acquisition related costs in connection with the Merger that impacted the effective tax rate in 2025. The effective tax rate for 2026 reflects the impact of the lower tax benefit associated with severance and repositioning charges and IPG acquisition related costs.
Numerous foreign jurisdictions have enacted legislation to adopt a minimum effective tax rate described in the Global Anti-Base Erosion, or Pillar Two, model rules issued by the Organization for Economic Co-operation and Development ("OECD"). Under such rules, a minimum effective tax rate of 15% applies to multinational companies with consolidated revenue above €750 million.
Under the Pillar Two rules, a company is required to determine a combined effective tax rate for all entities located in a jurisdiction. If the jurisdictional effective tax rate determined under the Pillar Two rules is less than 15%, a top-up tax will be due to bring the jurisdictional effective tax rate up to 15%. We are continuing to monitor Pillar Two legislative developments and the effects of Pillar Two on our business.
On January 5, 2026, the OECD released comprehensive administrative guidance on the “side-by-side system” to streamline Pillar Two’s global minimum tax rules, which would exclude U.S. parented groups from certain Pillar Two provisions in recognition of existing U.S. minimum tax rules. The side-by-side safe harbor election will be effective beginning in 2026, once adopted into domestic legislation, with the transitional safe harbor extended through 2027 to facilitate the implementation of this permanent system. Overall, the rules are not expected to have a material adverse impact on our results of operations, financial position, or cash flows.
On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The legislation does not have a material impact on our financial statements.
At March 31, 2026, our gross unrecognized tax benefits were $441.3 million. Of this amount, approximately $423.7 million would affect our effective tax rate upon resolution of the uncertain tax positions.
9. Pension and Other Postemployment Benefits
Pension and other postemployment benefits net periodic benefit expense:
| Defined Benefit Pension Plans | Postemployment Arrangements | ||||||||||||||||||||||
| Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Service cost | $ | 1.7 | $ | 1.5 | $ | 0.5 | $ | 0.5 | |||||||||||||||
| Interest cost | 2.3 | 1.8 | 1.3 | 1.4 | |||||||||||||||||||
| Expected return on plan assets | — | (0.2) | — | — | |||||||||||||||||||
| Amortization of prior service cost | 1.1 | 0.8 | 0.7 | 0.9 | |||||||||||||||||||
| Amortization of actuarial losses | (0.6) | 0.5 | — | — | |||||||||||||||||||
| Total net periodic benefit expense | $ | 4.5 | $ | 4.4 | $ | 2.5 | $ | 2.8 |
In each of the three months ended March 31, 2026 and 2025, we contributed $0.2 million and $0.1 million, respectively, to the defined benefit pension plans.
10. Severance and Repositioning Costs
Severance and repositioning costs incurred during the three months ended March 31, 2026 reflect adjustments to estimates for actions taken during the year ended December 31, 2025 related to the Merger with IPG. Total costs of $4.1 million consist of severance and employee-related termination benefits, as well as real estate repositioning costs.
The following table summarizes activity during the period related to adjustments to liabilities for severance and contract terminations and other, which are expected to be settled in cash. In addition, real estate write downs of $1.4 million were recorded during the period, which is a non-cash charge.
| Liability at December 31, 2025 | Expense | Cash Payments | Liability at March 31, 2026 | ||||||||||||||||||||||||||
| Severance | $ | 539.4 | $ | 2.7 | $ | (192.2) | $ | 349.9 | |||||||||||||||||||||
| Contract Terminations and Other | 80.4 | — | (3.6) | 76.8 | |||||||||||||||||||||||||
| Total severance and contract terminations and other | $ | 619.8 | $ | 2.7 | $ | (195.8) | $ | 426.7 |
11. Loss on Assets Held for Sale or Dispositions of Subsidiaries
During the fourth quarter of 2025, management determined that the assets and liabilities of certain businesses planned for disposition in the next twelve months, primarily within the Advertising and Experiential & Other (formerly, Execution & Support) disciplines, met the criteria to be classified as held for sale. Accordingly, these businesses were recorded at net realizable value - fair value less cost to sell. The disposals do not represent a strategic shift that has or will have a major effect on our operations or financial results and therefore do not qualify for discontinued operations presentation.
During the first quarter of 2026, we identified additional businesses for disposition as part of our ongoing review of our strategic position. We recorded impairment charges of $34.3 million to write down the businesses identified for disposition to net realizable value. Fair value was determined using discounted cash flow analyses, supplemented by observable market inputs where available. These charges were recorded in loss on assets held for sale and disposition of subsidiaries in the consolidated statements of income. In addition, we closed on the sale of certain legacy IPG businesses and recorded an adjustment to goodwill (see Note 5 to the consolidated financial statements).
The following table presents the major classes of assets and liabilities classified as held for sale and included in the consolidated balance sheet as of March 31, 2026. Assets and liabilities classified as held for sale are presented separately within current assets and current liabilities, respectively, in the consolidated balance sheet as of March 31, 2026.
| March 31, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Assets Held for Sale or Disposition | ||||||||||||||
| Accounts receivable | $ | 405.3 | $ | 623.4 | ||||||||||
| Work in process | 141.8 | 240.7 | ||||||||||||
| Other current assets | 135.4 | 116.8 | ||||||||||||
| Property and Equipment, net | 13.5 | 13.1 | ||||||||||||
| Other assets | 15.6 | 18.2 | ||||||||||||
| Total Assets Held for Sale or Disposition | $ | 711.6 | $ | 1,012.2 | ||||||||||
| Liabilities Held for Sale or Disposition | ||||||||||||||
| Accounts payable | $ | 524.6 | $ | 669.7 | ||||||||||
| Customer advances | 254.2 | 377.5 | ||||||||||||
| Other current liabilities | 193.5 | 213.8 | ||||||||||||
| Total Liabilities Held for Sale or Disposition | $ | 972.3 | $ | 1,261.0 |
12. Supplemental Cash Flow Data
Change in operating capital:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Increase) decrease in accounts receivable | $ | 1,863.5 | $ | 1,128.1 | |||||||
| (Increase) decrease in work in process and other current assets | (504.5) | (344.6) | |||||||||
| Increase in accounts payable | (2,420.0) | (1,847.5) | |||||||||
| (Decrease) in customer advances, taxes payable and other current liabilities | (80.4) | (67.9) | |||||||||
| Change in other assets and liabilities, net | (68.7) | (41.4) | |||||||||
| Increase (decrease) in operating capital | $ | (1,210.1) | $ | (1,173.3) |
Supplemental financial information:
| Income taxes paid | $ | 91.4 | $ | 67.1 | |||||||
| Interest paid | $ | 103.5 | $ | 33.6 |
Non-cash increase in lease liabilities:
| Operating leases | $ | 18.4 | $ | 37.1 | |||||||
| Finance leases | $ | 5.1 | $ | 8.0 |
13. Commitments and Contingent Liabilities
In the ordinary course of business, we are involved in various legal proceedings. We do not presently expect that such proceedings will have a material adverse effect on our results of operations or financial position.
14. Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss), net of income taxes:
| Cash Flow Hedge | Defined Benefit Pension Plans and Postemployment Arrangements | Foreign Currency Translation | Total | ||||||||||||||||||||
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| January 1 | $ | (1.3) | $ | (40.2) | $ | (1,224.3) | $ | (1,265.8) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | — | — | (52.5) | (52.5) | |||||||||||||||||||
| Reclassification from accumulated other comprehensive income (loss) | 0.9 | 3.5 | — | 4.4 | |||||||||||||||||||
| March 31 | $ | (0.4) | $ | (36.7) | $ | (1,276.8) | $ | (1,313.9) |
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| January 1 | $ | (5.0) | $ | (25.5) | $ | (1,445.4) | $ | (1,475.9) | |||||||||||||||
| Other comprehensive income (loss) before reclassifications | — | — | 78.7 | 78.7 | |||||||||||||||||||
| Reclassification from accumulated other comprehensive income (loss) | 1.0 | 0.4 | — | 1.4 | |||||||||||||||||||
| March 31 | $ | (4.0) | $ | (25.1) | $ | (1,366.7) | $ | (1,395.8) |
15. Fair Value
Financial assets and liabilities measured at fair value on a recurring basis:
| March 31, 2026 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 4,288.1 | $ | 4,288.1 | |||||||||||||||||||
| Marketable equity securities | $ | 0.8 | $ | 0.8 | |||||||||||||||||||
| Cross currency swaps - net investment hedge | $ | 5.8 | 5.8 | ||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Contingent purchase price obligations | $ | 235.9 | $ | 235.9 | |||||||||||||||||||
| December 31, 2025 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 6,881.1 | $ | 6,881.1 | ||||||||||||||||||||||
| Marketable equity securities | 0.9 | 0.9 | ||||||||||||||||||||||||
| Cross currency swaps - net investment hedge | $ | 7.1 | 7.1 | |||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Contingent purchase price obligations | $ | 214.9 | 214.9 |
Changes in contingent purchase price obligations:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| January 1 | $ | 214.9 | $ | 220.1 | |||||||
| Acquisitions | 20.7 | 2.8 | |||||||||
| Revaluation and interest | 3.6 | 3.1 | |||||||||
| Payments | (2.8) | (2.8) | |||||||||
| Foreign currency translation | (0.5) | (0.1) | |||||||||
| March 31 | $ | 235.9 | $ | 223.1 |
Carrying amount and fair value of our financial assets and liabilities:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 4,288.1 | $ | 4,288.1 | $ | 6,881.1 | $ | 6,881.1 | |||||||||||||||
| Marketable equity securities | 0.8 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||
| Non-marketable equity securities | 61.5 | 61.5 | 62.1 | 62.1 | |||||||||||||||||||
| Cross currency swaps - net investment hedge | 5.8 | 5.8 | 7.1 | 7.1 | |||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Short-term debt | $ | 67.4 | $ | 67.4 | $ | 62.0 | $ | 62.0 | |||||||||||||||
| Contingent purchase price obligations | 235.9 | 235.9 | 214.9 | 214.9 | |||||||||||||||||||
| Long-Term Debt | 9,977.5 | 9,556.3 | 9,054.5 | 8,818.9 |
The estimated fair value of the foreign currency derivatives and the cross-currency swaps are determined using model-derived valuations, taking into consideration foreign currency rates, interest rates, and counterparty credit risk. The estimated fair value of the contingent purchase price obligations is calculated in accordance with the terms of each acquisition agreement and is discounted. The fair value of long-term debt is based on quoted market prices.
16. Accelerated Share Repurchase
From time to time, our Board of Directors authorizes the repurchase of shares of our common stock. In February 2026, the Board authorized the repurchase of up to $5.0 billion of our common stock. Pursuant to this authorization, we also entered into an accelerated share repurchase ("ASR") program to repurchase approximately $2.5 billion of our common stock.
Share repurchases for the three months ended March 31, 2026 of 28.3 million were primarily related to our accelerated stock repurchase program and also include shares surrendered by employees to satisfy tax withholding obligations in connection with restricted stock awards issued to employees. The forward purchase of additional shares under the ASR is included as a reduction to APIC as of the three months ended March 31, 2026.
17. Subsequent Events
We have evaluated events subsequent to the balance sheet date and determined that there have not been any events that have occurred that would require additional adjustments to, or disclosures in, these unaudited consolidated financial statements.
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