Stagwell (NASDAQ:STGW) Issues Earnings Results

Stagwell (NASDAQ:STGW) issued its quarterly earnings results on Tuesday. The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.01, FiscalAI reports. The firm had revenue of $807.44 million for the quarter, compared to analyst estimates of $813.48 million. Stagwell had a return on equity of 15.31% and a net margin of 0.68%.The company’s revenue was up 2.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.24 earnings per share. Stagwell updated its FY 2026 guidance to 0.980-1.120 EPS.

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

• Stagwell posted a strong 2025 and issued upbeat 2026 guidance, with 2026 net revenue growth of 8%-12%, adjusted EBITDA $475M-$525M, and EPS $0.98-$1.12, after reporting $422M adjusted EBITDA and $0.83 adjusted EPS in 2025.
• Management is pivoting toward AI and productized offerings — the Marketing Cloud surpassed roughly $105M–$110M ARR with high organic growth, and new products (The Machine/MOOS, Palantir-powered agentic targeting, NewVoices.ai) have early commercial traction including a $5M deployment and multiple proofs of concept.
• The board approved a meaningful buyback expansion (an additional $350M authorization, ~$400M capacity) and management intends aggressive repurchases to reduce share count and boost per-share metrics.
• The stock currently trades at a significant valuation discount (under ~6x forward adj. EBITDA), and the investment case depends on execution risk — successful commercialization of AI products and delivery of the remaining $80M-$100M of cost savings are needed to justify the upside.

Stagwell Price Performance

Shares of NASDAQ:STGW opened at $6.16 on Wednesday. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.98. Stagwell has a twelve month low of $4.03 and a twelve month high of $7.16. The stock’s 50 day moving average is $5.40 and its 200-day moving average is $5.32. The firm has a market capitalization of $1.55 billion, a price-to-earnings ratio of 102.67 and a beta of 1.71.

Institutional Trading of Stagwell

Hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC acquired a new position in Stagwell during the first quarter worth $74,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Stagwell by 6.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company’s stock worth $316,000 after acquiring an additional 3,249 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in shares of Stagwell during the first quarter worth about $137,000. Jane Street Group LLC raised its holdings in shares of Stagwell by 36.0% in the 1st quarter. Jane Street Group LLC now owns 123,000 shares of the company’s stock worth $744,000 after acquiring an additional 32,546 shares during the last quarter. Finally, Legal & General Group Plc raised its holdings in shares of Stagwell by 5.2% in the 2nd quarter. Legal & General Group Plc now owns 101,049 shares of the company’s stock worth $455,000 after acquiring an additional 5,017 shares during the last quarter. Institutional investors and hedge funds own 35.61% of the company’s stock.

Wall Street Analysts Forecast Growth

STGW has been the subject of several recent analyst reports. Wall Street Zen downgraded shares of Stagwell from a “buy” rating to a “hold” rating in a research report on Saturday. Zacks Research lowered shares of Stagwell from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 30th. Rosenblatt Securities restated a “buy” rating and issued a $9.00 price target on shares of Stagwell in a report on Monday, December 1st. Seaport Research Partners raised shares of Stagwell to a “strong-buy” rating in a research note on Friday, November 14th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Stagwell in a report on Monday, December 29th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $7.96.

Key Stories Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Management increased the share repurchase program by $350 million, leaving $400 million available — a clear signal of confidence in cash flow and shareholder returns that typically supports the stock. Stagwell Inc. (NASDAQ:STGW) Reports Results for the Three and Twelve Months Ended December 31, 2025
• Positive Sentiment: FY2026 guidance calls for net revenue growth of 8–12%, adjusted EBITDA of $475–$525M and EPS guidance of $0.98–$1.12 — management tied growth to AI, advocacy and marketing cloud expansion, giving investors a higher-growth narrative for next year. Stagwell outlines 8–12% net revenue growth target for 2026 as AI, advocacy, and buybacks accelerate
• Positive Sentiment: Stagwell formed a strategic partnership with AppLovin to add Axon mobile/ad tech to its media stack — this should improve mobile targeting, measurement and client ROI, supporting revenue mix improvement in performance marketing. Stagwell (STGW) Announces Strategic Partnership with AppLovin to Accelerate Client Advantage in Performance Marketing
• Positive Sentiment: Street support: Needham reiterated a Buy rating, which can help sustain investor interest following the print. Needham Remains a Buy on Stagwell (STGW)
• Neutral Sentiment: Quarter was mixed: Q4 EPS of $0.30 beat consensus $0.29, but revenue of ~$807M slightly missed estimates (~$813M). Management highlighted net new business wins and improved FCF conversion, tempering the revenue miss. Stagwell (STGW) Q4 Earnings and Revenues Top Estimates
• Neutral Sentiment: Brand/AI recognition (Code and Theory on Ad Age A-List) supports the company’s AI/transformation story but is a longer-term catalyst rather than immediate earnings upside. Code and Theory Recognized by Ad Age A-List for Leading Transformation in the AI Era

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.