Stagwell (NASDAQ:STGW) Announces Earnings Results, Beats Estimates By $0.03 EPS

Stagwell (NASDAQ:STGW) released its earnings results on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.03, FiscalAI reports. Stagwell had a return on equity of 27.30% and a net margin of 0.53%. The firm had revenue of $816.03 million during the quarter, compared to analyst estimates of $838.38 million. During the same period last year, the business posted $0.24 earnings per share. Stagwell’s revenue was up 9.8% compared to the same quarter last year.

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 Stock Up 9.8%

NASDAQ STGW traded up $0.86 during trading on Thursday, reaching $9.70. 2,816,297 shares of the company’s stock were exchanged, compared to its average volume of 1,606,134. The stock has a market cap of $2.37 billion, a P/E ratio of 161.58 and a beta of 1.30. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.81 and a current ratio of 0.81. The company has a 50 day moving average price of $8.65 and a two-hundred day moving average price of $7.12. Stagwell has a 1 year low of $4.28 and a 1 year high of $10.10.

Trending Headlines about Stagwell

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted EPS beat expectations: Stagwell reported third-quarter adjusted earnings of $0.34 per share, above the $0.31 FactSet and consensus estimate and up from $0.24 a year earlier. Earnings Flash: Stagwell Q3 Adjusted EPS
• Positive Sentiment: 2026 guidance was raised: Management lifted its full-year outlook following what it described as strong third-quarter performance, improving investor confidence in the company’s earnings trajectory. Stagwell Lifts 2026 Guidance
• Positive Sentiment: Revenue continued to grow: Third-quarter revenue rose approximately 9.8% year over year to $816.03 million, while the Marketing Cloud business helped support the earnings outperformance. Stagwell Q3 2026 Earnings
• Positive Sentiment: AI platform expansion: Stagwell announced that it is unifying the employee experience across more than 70 agencies on the ServiceNow AI Platform, supporting its broader technology and digital-transformation strategy. Stagwell Unifies Employee Experience on ServiceNow AI Platform
• Negative Sentiment: Revenue missed expectations: Quarterly revenue of $816.03 million was below analysts’ estimate of $838.38 million, partially offsetting the EPS beat. Stagwell’s reported net margin was also only 0.53%, highlighting limited bottom-line profitability. Stagwell Earnings Report

Insider Activity

In other news, insider Frank Lanuto sold 62,000 shares of the stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $8.46, for a total value of $524,520.00. Following the transaction, the insider owned 491,977 shares in the company, valued at approximately $4,162,125.42. This represents a 11.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 11.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. The Goldman Sachs Group initiated coverage on Stagwell in a research report on Monday, October 5th. They issued a “buy” rating and a $13.00 price target on the stock. B. Riley Financial boosted their price objective on Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Needham & Company LLC upped their target price on shares of Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Rosenblatt Securities raised their target price on shares of Stagwell from $9.00 to $10.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Finally, Wells Fargo & Company lifted their price target on shares of Stagwell from $8.00 to $10.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $10.17.

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.