Omnicom Group Inc. stock research
FY2026 Q1
Omnicom Group (OMC) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sharply from the prior quarter's negative level and was slightly lower than the same quarter last year.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved sharply from the prior quarter's negative level and was slightly lower than the same quarter last year.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue declined sequentially, leading to a significant gross margin improvement. This contrasts with the prior quarter when cost of revenue exceeded revenue.
- Compared to the immediately preceding quarter, gross margin improved from a negative level to a positive level, driven by higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin was slightly lower, as revenue and cost of revenue both increased but cost grew at a faster pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.6%
Gross profit
$1.0B
Revenue
$6.2B
Cost of revenue
$5.2B
Quarter-over-quarter change
+27.2 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $6.2B | $1.0B | $5.2B | 16.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+27.2 pts
Year-over-year change
Mar 31, 2025
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue declined sequentially, leading to a significant gross margin improvement. This contrasts with the prior quarter when cost of revenue exceeded revenue.
Compared to the immediately preceding quarter, gross margin improved from a negative level to a positive level, driven by higher revenue and lower cost of revenue. Versus the same quarter one year earlier, gross margin was slightly lower, as revenue and cost of revenue both increased but cost grew at a faster pace.
Monitor the trend in cost of revenue relative to revenue, as the current quarter's improvement may not persist if cost growth outpaces revenue growth.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Omnicom Group Inc. (OMC) | 16.6% |