Stagwell (NASDAQ:STGW) Issues Earnings Results, Beats Estimates By $0.08 EPS

Stagwell (NASDAQ:STGW) issued its quarterly earnings data on Thursday. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.08, Briefing.com reports. Stagwell had a return on equity of 24.12% and a net margin of 0.64%.The firm had revenue of $786.31 million during the quarter, compared to the consensus estimate of $754.56 million. During the same period in the prior year, the business earned $0.17 EPS. The firm’s revenue was up 11.2% on a year-over-year basis. Stagwell updated its FY 2026 guidance to 1.030-1.170 EPS.

Here are the key takeaways from Stagwell’s conference call:

• Strong Q2 growth and margin expansion: Organic revenue grew 10% and organic net revenue 5%, while adjusted EBITDA rose 15% to $108.7 million and margin expanded 143 basis points to 17.2%, aided by cost controls.
• Digital transformation is the primary growth engine: The segment delivered 18% organic net revenue growth and a 30% adjusted EBITDA margin, driven by demand for AI-enabled strategy, technology, creativity, and workflow transformation.
• Record new business momentum: Net new business reached $171 million, up 45% year over year, with major wins including IBM’s creative account, Visit California, Hershey, Mondelez, and Heineken. Management expects the year-end pipeline to be approximately 30% above last year.
• Guidance and shareholder returns improved: Full-year net revenue, adjusted EBITDA, and free-cash-flow conversion guidance were reiterated, while adjusted EPS guidance was raised to $1.03–$1.17. The company repurchased 14.4 million shares year to date and expects continued buybacks.
• Second-half outlook is favorable but includes execution and leverage considerations: Management expects double-digit organic net revenue growth led by digital transformation, communications, and election-related activity, while targeting year-end net leverage in the mid-twos and continuing selective acquisitions and technology investment.

Stagwell Price Performance

Shares of NASDAQ:STGW traded down $0.04 on Friday, reaching $8.45. 2,038,862 shares of the company traded hands, compared to its average volume of 1,669,889. The stock has a market capitalization of $2.09 billion, a PE ratio of 120.71 and a beta of 1.26. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.83 and a quick ratio of 0.83. The company’s 50 day moving average is $7.15 and its 200-day moving average is $6.40. Stagwell has a fifty-two week low of $4.28 and a fifty-two week high of $8.50.

Insiders Place Their Bets

In other news, Director Bradley J. Gross sold 2,163,790 shares of Stagwell stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $6.04, for a total value of $13,069,291.60. Following the transaction, the director directly owned 8,789 shares of the company’s stock, valued at $53,085.56. This trade represents a 99.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Mark Jeffery Penn bought 20,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were purchased at an average cost of $5.88 per share, for a total transaction of $117,600.00. Following the completion of the purchase, the chief executive officer owned 23,034,990 shares in the company, valued at approximately $135,445,741.20. This trade represents a 0.09% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 11.20% of the company’s stock.

Institutional Investors Weigh In On Stagwell

Several hedge funds have recently bought and sold shares of the business. Hotchkis & Wiley Capital Management LLC grew its holdings in shares of Stagwell by 4.6% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company’s stock valued at $118,425,000 after acquiring an additional 920,431 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in Stagwell by 26.8% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,111,549 shares of the company’s stock valued at $20,107,000 after purchasing an additional 869,562 shares in the last quarter. UBS Group AG grew its stake in Stagwell by 10.8% in the third quarter. UBS Group AG now owns 2,851,083 shares of the company’s stock valued at $16,052,000 after purchasing an additional 277,637 shares in the last quarter. JPMorgan Chase & Co. increased its position in Stagwell by 54.1% in the 4th quarter. JPMorgan Chase & Co. now owns 2,676,532 shares of the company’s stock worth $13,088,000 after purchasing an additional 939,888 shares during the last quarter. Finally, State Street Corp increased its position in Stagwell by 3.3% in the 4th quarter. State Street Corp now owns 2,299,100 shares of the company’s stock worth $11,243,000 after purchasing an additional 73,817 shares during the last quarter. 35.61% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on STGW shares. Wells Fargo & Company lifted their price objective on shares of Stagwell from $8.00 to $10.00 and gave the company an “overweight” rating in a research report on Friday. B. Riley Financial boosted their price objective on Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a research report on Friday. Weiss Ratings lowered Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 4th. Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. Finally, Needham & Company LLC raised their target price on shares of Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research note on Thursday. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $9.00.

Key Headlines Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Analyst price targets raised: Wells Fargo upgraded its stance to “overweight” and lifted its price target from $8 to $10. Needham also raised its target to $10 and assigned a “buy” rating, implying approximately 19% upside from the referenced share price. Benzinga analyst rating reports
• Positive Sentiment: Adjusted Q2 earnings exceeded expectations: Stagwell reported adjusted EPS of $0.25, above the $0.17 analyst consensus and up from $0.17 a year earlier. Revenue rose 11% year over year to $786 million, surpassing the $755 million consensus estimate. Stagwell Q2 earnings and revenues article
• Positive Sentiment: Profitability and demand trends improved: Adjusted EBITDA increased 15% to $109 million, adjusted EPS grew 39%, and digital transformation organic net revenue climbed 18%. Record quarterly net new business of $171 million and $540 million over the last 12 months point to healthy client demand. Stagwell second-quarter results
• Neutral Sentiment: Management raised full-year 2026 adjusted EPS guidance to $1.03-$1.17 from the prior outlook, above the $1.01 consensus estimate. The company’s earnings presentation provides additional operating detail. Stagwell 2026 Q2 earnings presentation
• Negative Sentiment: Revenue outlook trails expectations: Full-year 2026 revenue guidance of $3.0 billion-$3.1 billion is below the approximately $3.2 billion consensus estimate, potentially limiting the benefit of the stronger EPS outlook.
• Negative Sentiment: Despite adjusted earnings growth, Stagwell posted a $8 million quarterly net loss attributable to common shareholders, compared with a $5 million loss a year earlier, underscoring continued GAAP profitability risk.

About Stagwell

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.