Omnicom Group Inc. stock research
FY2025 Q4
Omnicom Group (OMC) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose more sharply, resulting in a gross loss and a weakened gross margin. Gross profit turned negative, reversing the positive figures seen in both comparison periods.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose more sharply, resulting in a gross loss and a weakened gross margin. Gross profit turned negative, reversing the positive figures seen in both comparison periods.
- The most observable driver is the relationship between revenue and cost of revenue: revenue grew but cost of revenue increased at a faster rate, compressing margin into negative territory.
- Compared to the immediately preceding quarter, gross margin weakened from positive to negative, and gross profit declined substantially. Versus the same quarter one year earlier, gross margin also weakened from positive to negative, with gross profit turning from a positive figure to a loss.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-10.6%
Gross profit
-$585.0M
Revenue
$5.5B
Cost of revenue
$6.1B
Quarter-over-quarter change
-29.3 pts
Year-over-year change
-30.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $3.7B | $629.5M | $3.1B | 17.1% |
| Jun 30, 2025 | $4.0B | $668.3M | $3.3B | 16.6% |
| Sep 30, 2025 | $4.0B | $754.3M | $3.3B | 18.7% |
| Dec 31, 2025 | $5.5B | -$585.0M | $6.1B | -10.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-29.3 pts
Year-over-year change
Dec 31, 2024
-30.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between revenue and cost of revenue: revenue grew but cost of revenue increased at a faster rate, compressing margin into negative territory.
Compared to the immediately preceding quarter, gross margin weakened from positive to negative, and gross profit declined substantially. Versus the same quarter one year earlier, gross margin also weakened from positive to negative, with gross profit turning from a positive figure to a loss.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's cost exceeded revenue, producing a negative gross margin.