Stagwell (NASDAQ:STGW) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Stagwell (NASDAQ:STGW) issued its quarterly earnings data on Thursday. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.03, FiscalAI reports. The business had revenue of $816.03 million for the quarter, compared to analysts’ expectations of $838.38 million. Stagwell had a return on equity of 27.30% and a net margin of 0.53%. The business’s revenue was up 9.8% on a year-over-year basis. During the same period last year, the business earned $0.24 EPS.

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

• Record third-quarter performance: Revenue rose 10% to $816 million, net revenue increased 8% to $664 million, and adjusted EBITDA grew 25% to $144.8 million, with margins expanding 290 basis points to 21.8%. Adjusted EPS increased 42% to $0.34.
• AI and digital transformation momentum accelerated. Digital Transformation grew 23% organically and Marketing Cloud grew 108%, while enterprise technology bookings reached $59 million year to date—more than double the initial target. Management doubled its 2027 enterprise tech bookings goal to $150 million and highlighted the higher margins of software revenue.
• Full-year guidance was raised: Stagwell now expects adjusted EBITDA of $490 million–$540 million and adjusted EPS of $1.07–$1.21, while maintaining its 8%–12% total net revenue growth and 50%–60% free-cash-flow conversion outlook.
• New growth opportunities are expanding. Stagwell won a federal assignment with a total contract size of $1.5 billion over five years, acquired ad-operations platform Freestar, expanded its Palantir partnership, and reported record third-quarter net new business of $168 million.
• Some businesses and regions remain pressured: Marketing Services net revenue declined 9% year over year, Media and Commerce fell 2% organically, and Middle East disruptions created a $9 million headwind. Management also acknowledged continued turmoil and timing delays in the creative-services market.

Stagwell Trading Up 0.8%

NASDAQ STGW traded up $0.07 on Friday, reaching $10.03. The stock had a trading volume of 735,892 shares, compared to its average volume of 1,609,818. The stock has a fifty day moving average price of $8.68 and a two-hundred day moving average price of $7.15. Stagwell has a 12-month low of $4.28 and a 12-month high of $10.23. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 2.11. The firm has a market capitalization of $2.45 billion, a price-to-earnings ratio of 166.58 and a beta of 1.30.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on STGW. Wells Fargo & Company upped their price objective on Stagwell from $8.00 to $10.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. Rosenblatt Securities upped their target price on shares of Stagwell from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. B. Riley Financial reaffirmed a “buy” rating and set a $12.00 target price (up from $10.00) on shares of Stagwell in a research note on Friday. Weiss Ratings raised Stagwell from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Finally, The Goldman Sachs Group began coverage on Stagwell in a report on Monday, October 5th. They issued a “buy” rating and a $13.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Stagwell currently has an average rating of “Moderate Buy” and an average price target of $10.83.

Stagwell News Summary

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Raised outlook boosts investor confidence: Stagwell increased its 2026 adjusted EPS outlook to $1.07-$1.21 and highlighted a goal of securing $150 million in 2027 enterprise technology bookings. Management also reiterated its ambition to become “number one in marketing transformation,” supporting the growth narrative. Stagwell targets $150M 2027 enterprise tech bookings as it raises 2026 adjusted EPS
• Positive Sentiment: Q3 earnings topped expectations: Adjusted EPS was $0.34, above the $0.31 consensus estimate and up from $0.24 a year earlier. Revenue increased 9.8% year over year to $816.0 million, with the Marketing Cloud business helping support profitability. Stagwell Q3 Earnings Top Estimates
• Positive Sentiment: Analysts raised their targets: Needham lifted its price target from $10 to $12 and initiated or maintained a “buy” rating. B. Riley also reaffirmed its “buy” rating and raised its target to $12 from $10, implying additional upside based on the referenced share price. Needham Stagwell recommendations B. Riley Stagwell recommendations
• Neutral Sentiment: Revenue fell short of estimates: Quarterly revenue of $816.0 million missed the $838.4 million consensus forecast, tempering the otherwise strong earnings report. Stagwell’s reported net margin was only 0.53%, leaving execution and cost control important for sustaining the rally. Stagwell reports third-quarter results
• Neutral Sentiment: Governance and technology developments: Stable insider trading plans may ease governance concerns, while Stagwell’s effort to unify its global agency network on ServiceNow’s AI platform could support longer-term operating efficiency. Stagwell unifies employee experience on ServiceNow AI Platform

About Stagwell

Stagwell Inc is a global marketing and communications services company that helps brands, organizations and institutions develop strategies, engage audiences and manage their reputations. Its services include advertising, media, public relations, digital marketing, consumer insights, creative development and marketing technology.

The company operates through a network of agencies and specialized businesses serving clients across North America, Europe, Asia-Pacific and other international markets.