Stagwell Q3 revenue slightly beats; raises outlook
STGW•Stagwell reported third-quarter revenue of $816 million, up 10% year over year, and adjusted EPS of $0.34. It raised 2026 adjusted EBITDA and adjusted EPS guidance while reiterating its revenue growth outlook.
1. Quarterly results
Stagwell reported third-quarter revenue of $816 million, up 10% year over year and slightly above analyst expectations of $813.29 million. Adjusted EPS was $0.34, compared with expectations of $0.31. Adjusted EBITDA was $145 million, above the $136.84 million consensus estimate.
2. 2026 outlook
The company raised its 2026 adjusted EBITDA guidance to $490 million-$540 million and its adjusted EPS outlook to $1.07-$1.21. It reiterated guidance for 2026 total net revenue growth of 8%-12%.
3. Segment growth
Organic net revenue in Digital Transformation rose 23% year over year, which the company attributed to demand for AI-powered marketing solutions. The Marketing Cloud's organic net revenue increased 108%, attributed to growth in enterprise technology products. The CFO said improved earnings contributed to an increase of more than 400% in operating cash flow year to date.
