Omnicom (OMC) Stock Spikes After $5 Billion Repurchase Plan

Shares of Omnicom Group Inc. (NYSE: OMC) surged more than 10% on February 19, 2026, after the advertising giant announced a $5 billion share repurchase program authorized by its Board of Directors. The announcement came alongside record Q4 2025 revenue of $5.53 billion, giving investors a dual catalyst to push the stock sharply higher. The buyback represents roughly 23% of Omnicom’s market capitalization, signaling strong management confidence at a time when the stock had been trading near its 52-week low.

Inside Omnicom’s $5B Share Repurchase Plan

On February 18, 2026, Omnicom’s Board of Directors approved a program to repurchase up to $5 billion of its common stock. As an immediate component, the company executed accelerated share repurchase (ASR) arrangements totaling $2.5 billion, funded entirely with cash on hand.

Under these arrangements, Omnicom will pay $2.5 billion to financial institution dealers and expects to receive an initial share delivery as early as February 20, 2026, with final settlement no later than the end of Q2 2026. PJT Partners is serving as financial advisor on the ASR.

The remaining $2.5 billion may be deployed over time through open market purchases or privately negotiated transactions at management’s discretion, with no fixed commitment or timeline.

The announcement follows Omnicom’s completed merger with The Interpublic Group of Companies (IPG), which created the world’s largest marketing conglomerate, now boasting 2.6 billion verified IDs on its Omni platform and $73.5 billion in annual media buying power.

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OMC Stock Snapshot: Price Action and Valuation

As of approximately 10:06 AM EST on February 19, 2026, OMC shares were trading at $77.78, up $7.62 or roughly 10.84% on the day against a previous close of $70.19. Despite the rally, the stock remains well off its 52-week high of $89.27 and had recently been hovering near its 52-week low of $66.33.

The one-year analyst consensus price target sits at $99.60, suggesting meaningful upside from current levels.

From a valuation standpoint, OMC trades at a trailing P/E of 11.51 and a forward P/E of just 7.42. Trailing twelve-month revenue stands at $16.07 billion, with a profit margin of 8.31%, return on equity of 27.01%, and $3.41 billion in total cash on hand, underlining the financial capacity behind the buyback.

Q4 2025 EPS came in at $2.59, missing the $2.94 estimate, though revenue beat expectations. The stock carries a forward dividend yield of approximately 4.13%, with the next earnings date estimated for April 21, 2026.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.