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

Stagwell (NASDAQ:STGW) announced its quarterly earnings data on Thursday. The company reported $0.25 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $786.31 million during the quarter, compared to analyst estimates of $754.56 million. During the same period in the prior year, the company earned $0.17 earnings per share. Stagwell’s revenue was up 11.2% compared to the same quarter last year. 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 Stock Performance

STGW stock traded down $0.04 during midday trading on Friday, reaching $8.45. 2,038,862 shares of the company’s stock traded hands, compared to its average volume of 1,669,889. The company has a 50-day moving average price of $7.15 and a two-hundred day moving average price of $6.40. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.83 and a current ratio of 0.83. Stagwell has a 52 week low of $4.28 and a 52 week high of $8.50. The firm has a market capitalization of $2.09 billion, a PE ratio of 120.71 and a beta of 1.26.

Wall Street Analysts Forecast Growth

STGW has been the topic of several research reports. Zacks Research upgraded Stagwell from a “strong sell” rating to a “hold” rating in a research note on Friday, June 5th. Weiss Ratings downgraded Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Wall Street Zen lowered Stagwell from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. Needham & Company LLC boosted their price objective on Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a research note on Thursday. Finally, Wells Fargo & Company upped their price objective on shares of Stagwell from $8.00 to $10.00 and gave the company an “overweight” rating in a report on Friday. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Stagwell currently has a consensus rating of “Moderate Buy” and an average target price of $9.00.

Insider Buying and Selling at Stagwell

In related news, CEO Mark Jeffery Penn purchased 20,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $5.88 per share, with a total value of $117,600.00. Following the completion of the acquisition, the chief executive officer directly owned 23,034,990 shares of the company’s stock, valued at approximately $135,445,741.20. The trade was a 0.09% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Bradley J. Gross sold 2,163,790 shares of Stagwell stock in a transaction 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 completion of the transaction, the director owned 8,789 shares of the company’s stock, valued at approximately $53,085.56. This trade represents a 99.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 11.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Hotchkis & Wiley Capital Management LLC increased its position in shares of Stagwell by 4.6% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 21,034,577 shares of the company’s stock valued at $118,425,000 after buying an additional 920,431 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of 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 acquiring an additional 869,562 shares during the period. UBS Group AG boosted its position in shares of 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 acquiring an additional 277,637 shares during the period. JPMorgan Chase & Co. grew its stake in Stagwell by 54.1% during the fourth quarter. JPMorgan Chase & Co. now owns 2,676,532 shares of the company’s stock valued at $13,088,000 after acquiring an additional 939,888 shares in the last quarter. Finally, State Street Corp grew its stake in Stagwell by 3.3% during the fourth quarter. State Street Corp now owns 2,299,100 shares of the company’s stock valued at $11,243,000 after acquiring an additional 73,817 shares in the last quarter. Institutional investors own 35.61% of the company’s stock.

Trending Headlines about 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.