Publicis raises growth outlook as it outperforms struggling rivals

Publicis has increased its full-year growth forecast after the French advertising giant boosted its revenues by over 10% in the first half, taking advantage of the difficulties faced by competitors like UK-based WPP.

CEO Arthur Sadoun credited the strong performance to new client wins despite tough economic conditions. After securing major accounts from US competitor IPG last year, Publicis has now taken on work for Coca-Cola and Mars — both previously handled by WPP.

On Thursday, the Paris-listed company raised its forecast for full-year organic growth to nearly 5%, up from its earlier estimate of 4–5%. Organic revenue climbed 5.4% in the first half compared to last year, with total revenue increasing by 10.9% to €8.5 billion.

This result sharply contrasts with WPP, which recently issued a profit warning and is bringing in Microsoft executive Cindy Rose as its new CEO. Publicis surpassed WPP at the end of last year to become the world’s largest advertising group.

Sadoun highlighted that second-quarter revenue growth outpaced competitors by about eight percentage points, stressing that Publicis — which owns Epsilon and Saatchi & Saatchi — is not simply buying market share.

The improved outlook comes despite an anticipated slowdown in marketing spending in the second half, as clients face economic headwinds and possible US tariffs. Sadoun acknowledged no signs of macroeconomic improvement but said the influx of new business had offset any cuts in spending, with 15 significant account wins so far this year.

In an industry grappling with budget cuts, restructuring, and leadership changes, Sadoun described Publicis as uniquely resilient and “the only one that is growing.” He expects the company to continue gaining share, pointing to potential upheaval at US rivals IPG and Omnicom as they explore a merger.

Publicis is putting about €1 billion a year into new technology and tools, including AI, with Sadoun insisting the focus is on innovation rather than scale alone.

Operating income rose 9.3% to €1.1 billion in the first half, while free cash flow increased to €828 million from €774 million a year earlier.

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