Stagwell expects a strong 2026, according to CEO Mark Penn on Tuesday morning’s Q4 and full-year earnings call.
The holding company reported Q4 net revenue of US$651 million, up 3% year over year. For the full year, Stagwell reported net revenue of US$2.43 billion, a 6% increase from 2024. Specifically in the U.S., net revenue growth for Q4 was 0.2%, and YTD was 1.7%.
Growth was driven by The Marketing Cloud, which posted 230% net revenue growth, as well as digital transformation (13%) and marketing services (6%). Overall, marketing services drove 40% of the company’s 2025 net revenue. The Marketing Cloud Group serves as Stagwell’s platform for marketers to access AI-powered products across market research, communications, creative, and media.
New business momentum also played a key role in Stagwell’s growth, with US$106 million in net new business in the fourth quarter. The holding company secured multiple high-profile client wins and expansions, including Target, Microsoft, Grubhub, and Venmo.
Client retention also remained strong, with Stagwell’s top 25 customers growing 14% year over year in the fourth quarter. Penn described the state of the industry following Omnicom’s acquisition of IPG as “managed chaos,” creating a more “active pitching environment” as clients navigate instability at the other major holding companies. He said this bodes well for Stagwell and could translate into additional organic growth for the company.
Penn and his team also touted the company’s investments in its tech stack. Earlier this year, Stagwell debuted its agentic operating system, The Machine, at CES. The company also launched Stagwell Search+, a tool designed to help brands navigate AI-driven search, and unveiled NewVoices.ai, an AI platform for sales, support, and customer retention.
Looking ahead, Stagwell anticipates a strong year, projecting 10% net revenue growth in 2026. The company expects an increase in government contracts to drive part of that growth as political activity ramps up heading into the midterm election cycle. Stagwell said it is also in the final rounds for several major government contracts. The company has previously defended its work in the sector, including projects for the Israeli government.
In the earnings statement, Penn stated, “In 2025, Stagwell increased its strategic pivot toward AI applications and services, building a powerful foundation for 2026. With accelerating growth ex-advocacy, record net new business, expanding margins, and doubled free cash flow, our FY25 results prove our strategy is working. We see great opportunity in 2026 to capitalize on an industry distracted by restructurings and mergers, and bolster our position as a winner in the age of AI.”
Editor's Note: This story was updated on March 10 at 12:10 PM EST to include U.S. market growth and a statement from Penn.
Source: Campaign US
