Stagwell (NASDAQ:STGW) Issues Earnings Results

Stagwell (NASDAQ:STGW) announced its earnings results on Thursday. The company reported $0.17 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01), Briefing.com reports. The company had revenue of $704.14 million for the quarter, compared to the consensus estimate of $700.48 million. Stagwell had a return on equity of 22.61% and a net margin of 1.00%.The firm’s revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.12 EPS. Stagwell updated its FY 2026 guidance to 0.980-1.120 EPS.

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

• Stagwell reported a record quarter of net new business at $141M (last 12 months $486M) and signed its first five‑year, nearly $60M government contract, with a government pipeline now worth “hundreds of millions.”
• Its Digital Transformation / enterprise AI push (The Machine, SATS, Search+) shows early traction with $12M booked toward a $25M first sales goal, multiple active engagements and partnerships with Palantir, Google, Adobe and others.
• First‑quarter results beat the internal plan: revenue +8% to $704M, net revenue +4% to $585M, Adjusted EBITDA +9% to $89.7M (15.3% margin), and Adjusted EPS up 31% to $0.17 largely aided by ~7.3M shares repurchased; management reiterated full‑year guidance (net revenue +8–12%, Adj. EBITDA $475–525M).
• Cash and balance‑sheet metrics improved: operating cash flow up $34M vs. prior year, free cash flow target $250M–$300M, net leverage down to 3.11x aiming for mid‑2s by year‑end, and deferred acquisition payments shrinking toward negligible.
• Near‑term risks include international weakness (strong dollar and Middle East tourism/tech slowdowns) and a second‑half growth acceleration that is partly contingent on a political “supercycle” and closing several large contracts.

Stagwell Stock Performance

Shares of STGW traded up $0.09 on Friday, reaching $6.36. 1,670,087 shares of the stock traded hands, compared to its average volume of 1,832,271. Stagwell has a 12 month low of $4.03 and a 12 month high of $7.52. The firm has a market cap of $1.61 billion, a price-to-earnings ratio of 79.44 and a beta of 1.52. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.79 and a quick ratio of 0.79. The stock’s 50-day moving average price is $6.06 and its 200-day moving average price is $5.58.

Stagwell News Roundup

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted results and revenue growth — Stagwell reported Q1 revenue of ~$704M (up ~8% YoY), adjusted EPS of $0.17 (up ~31% YoY) and adjusted EBITDA of $90M (up 9%), showing improved operating performance. Stagwell Inc. (Nasdaq: STGW) Reports Results for the Three Months Ended March 31, 2026
• Positive Sentiment: Strong commercial traction — record net new business of $141M in Q1 and LTM net new business of $486M, supporting revenue runoff and future growth. Q1 results and net new business
• Positive Sentiment: Digital transformation growth — digital transformation net revenue was $97M (+9% YoY) with a two‑year growth stack of ~26%, highlighting higher‑margin, strategic revenue growth. Digital transformation metrics
• Positive Sentiment: Product/tech integration move — Stagwell announced a unified technology infrastructure intended to improve service delivery and margins, which may support longer‑term efficiency and cross‑sell. Stagwell Announces Unified Technology Infrastructure
• Neutral Sentiment: FY26 guidance reiterated — management set FY26 EPS guidance of $0.98–$1.12 (consensus ~$1.01), and reiterated revenue/EBITDA targets and free cash flow conversion goals; guidance is broadly in line with Street expectations but leaves room for range‑driven volatility. FY26 guidance and slide deck
• Negative Sentiment: Earnings miss vs. some estimates — reported EPS of $0.17 missed the Zacks/consensus figure of $0.18 by $0.01, prompting near‑term selling pressure among precision‑focused traders. Stagwell Misses Q1 Earnings Estimates
• Negative Sentiment: GAAP loss and mixed headlines — the company reported a GAAP net loss of ~$13M and some outlets framed the quarter as a revenue or earnings miss, creating headline risk despite positive adjusted metrics. Stagwell earnings in-line but revenue misses estimates

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. lifted its stake in Stagwell by 20.7% during the fourth quarter. Invesco Ltd. now owns 210,992 shares of the company’s stock worth $1,032,000 after purchasing an additional 36,113 shares during the period. Mercer Global Advisors Inc. ADV acquired a new stake in Stagwell in the 4th quarter valued at $120,000. State of Tennessee Department of Treasury bought a new stake in shares of Stagwell in the 4th quarter worth about $146,000. XTX Topco Ltd grew its holdings in shares of Stagwell by 154.9% in the 4th quarter. XTX Topco Ltd now owns 276,843 shares of the company’s stock worth $1,354,000 after purchasing an additional 168,241 shares during the last quarter. Finally, VARCOV Co. bought a new stake in shares of Stagwell in the 4th quarter worth about $468,000. Institutional investors own 35.61% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Craig Hallum set a $8.00 target price on shares of Stagwell and gave the company a “buy” rating in a research note on Wednesday, March 11th. B. Riley Financial dropped their price objective on Stagwell from $9.00 to $7.00 and set a “buy” rating on the stock in a research note on Friday, March 6th. Weiss Ratings upgraded Stagwell from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, March 16th. Wall Street Zen upgraded Stagwell from a “buy” rating to a “strong-buy” rating in a research note on Saturday, April 11th. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $9.00 price target on shares of Stagwell in a report on Wednesday, March 11th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $7.96.

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.