Stagwell (NASDAQ:STGW) Announces Earnings Results, Beats Expectations By $0.06 EPS

Stagwell (NASDAQ:STGW) issued its quarterly earnings results on Thursday. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.06, Briefing.com reports. Stagwell had a net margin of 0.53% and a return on equity of 26.66%. The company had revenue of $786.31 million for the quarter, compared to the consensus estimate of $754.56 million. During the same quarter in the prior year, the company earned $0.17 EPS. Stagwell’s quarterly 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 Stock Performance

NASDAQ STGW traded down $0.04 during mid-day trading on Friday, reaching $8.45. 2,038,862 shares of the stock were exchanged, compared to its average volume of 1,076,473. The company has a market capitalization of $2.09 billion, a P/E ratio of 140.83 and a beta of 1.26. The company has a debt-to-equity ratio of 1.99, a quick ratio of 0.83 and a current ratio of 0.83. The business’s 50 day moving average is $7.19 and its 200-day moving average is $6.41. Stagwell has a 1 year low of $4.28 and a 1 year high of $8.50.

Analysts Set New Price Targets

A number of research firms have recently weighed in on STGW. Wells Fargo & Company increased their price objective on shares of Stagwell from $8.00 to $10.00 and gave the stock an “overweight” rating in a research note on Friday. B. Riley Financial upped their price target on shares of Stagwell from $8.00 to $10.00 and gave the company a “buy” rating in a report on Friday. Wall Street Zen raised Stagwell from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Weiss Ratings lowered Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Finally, Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a report on Friday, June 5th. Five analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $9.40.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Kestra Advisory Services LLC purchased a new position in shares of Stagwell during the 4th quarter valued at approximately $26,000. Tower Research Capital LLC TRC raised its position in Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock worth $49,000 after acquiring an additional 8,170 shares during the period. Inceptionr LLC purchased a new position in Stagwell during the fourth quarter valued at $50,000. CIBC Asset Management Inc purchased a new position in Stagwell during the fourth quarter valued at $53,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Stagwell in the third quarter valued at about $69,000. 35.61% of the stock is owned by institutional investors and hedge funds.

Key Stagwell News

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.

Stagwell Company Profile

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.