Stagwell (NASDAQ:STGW) Posts Earnings Results, Beats Estimates By $0.08 EPS

Posted by Brian Himes on Jul 31st, 2026

Stagwell (NASDAQ:STGW – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.25 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.08, Briefing.com reports. Stagwell had a net margin of 0.64% and a return on equity of 24.12%. The business had revenue of $786.31 million during the quarter, compared to analyst estimates of $754.56 million. During the same quarter in the prior year, the business earned $0.17 earnings per share. The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. Stagwell updated its FY 2026 guidance to 1.030-1.170 EPS.

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

Strong Q2 growth and margin expansion: Organic revenue grew 10% and organic net revenue 5%, while adjusted EBITDA rose 15% to $108.7 million and margin expanded 143 basis points to 17.2%, aided by cost controls.
Digital transformation is the primary growth engine: The segment delivered 18% organic net revenue growth and a 30% adjusted EBITDA margin, driven by demand for AI-enabled strategy, technology, creativity, and workflow transformation.
Record new business momentum: Net new business reached $171 million, up 45% year over year, with major wins including IBM’s creative account, Visit California, Hershey, Mondelez, and Heineken. Management expects the year-end pipeline to be approximately 30% above last year.
Guidance and shareholder returns improved: Full-year net revenue, adjusted EBITDA, and free-cash-flow conversion guidance were reiterated, while adjusted EPS guidance was raised to $1.03–$1.17. The company repurchased 14.4 million shares year to date and expects continued buybacks.
Second-half outlook is favorable but includes execution and leverage considerations: Management expects double-digit organic net revenue growth led by digital transformation, communications, and election-related activity, while targeting year-end net leverage in the mid-twos and continuing selective acquisitions and technology investment.

Stagwell Price Performance

NASDAQ STGW traded down $0.02 on Friday, reaching $8.47. The company’s stock had a trading volume of 1,292,448 shares, compared to its average volume of 1,663,330. Stagwell has a 52 week low of $4.28 and a 52 week high of $8.50. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 1.99. The firm has a market cap of $2.10 billion, a PE ratio of 120.79 and a beta of 1.26. The business has a 50-day moving average price of $7.15 and a 200 day moving average price of $6.40.

Analysts Set New Price Targets

Several equities analysts recently issued reports on STGW shares. Wells Fargo & Company boosted their price target on Stagwell from $8.00 to $10.00 and gave the company an “overweight” rating in a research note on Friday. B. Riley Financial lifted their price objective on Stagwell from $8.00 to $10.00 and gave the stock a “buy” rating in a report on Friday. Wall Street Zen cut Stagwell from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 2nd. Weiss Ratings lowered Stagwell from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Finally, Zacks Research raised Stagwell from a “strong sell” rating to a “hold” rating in a research report on Friday, June 5th. Five research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $9.00.

Read Our Latest Stock Report on STGW

Key Headlines Impacting Stagwell

Here are the key news stories impacting Stagwell this week:

Positive Sentiment: Analysts raised their price targets. Wells Fargo lifted its target from $8 to $10 and assigned an “overweight” rating, implying approximately 21% upside from the referenced share price. Needham also raised its target to $10 and upgraded the stock to “buy.” Benzinga analyst rating update
Positive Sentiment: Adjusted earnings and revenue exceeded expectations. Stagwell reported second-quarter adjusted EPS of $0.25, compared with the $0.17 analyst consensus and $0.17 a year earlier. Revenue increased 11% year over year to $786.3 million, surpassing the $754.6 million consensus estimate. Stagwell Q2 earnings and revenues surpass estimates
Positive Sentiment: Operating momentum remained strong. Adjusted EBITDA rose 15% to $109 million, digital transformation net revenue grew organically 18%, and quarterly net new business reached a record $171 million, with $540 million over the last twelve months. Stagwell reports second-quarter results
Positive Sentiment: Full-year adjusted EPS guidance was raised to $1.03-$1.17, above the $1.01 consensus estimate, reinforcing the improved earnings outlook.
Neutral Sentiment: Investor attention is likely to remain focused on Stagwell’s earnings presentation and conference call for details on client demand, margins and the sustainability of new-business wins. Stagwell 2026 Q2 earnings presentation
Negative Sentiment: Revenue guidance was softer than expected. Stagwell projected full-year 2026 revenue of $3.0-$3.1 billion, below the $3.2 billion consensus estimate.
Negative Sentiment: The company posted a second-quarter GAAP net loss of $8 million, or $0.03 per share, compared with a $5 million loss a year earlier. This contrasts with the strong adjusted EPS result and highlights continuing earnings-quality concerns.

Insider Transactions at Stagwell

In other Stagwell news, CEO Mark Jeffery Penn purchased 20,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was purchased at an average price of $5.88 per share, for a total transaction of $117,600.00. Following the completion of the purchase, the chief executive officer directly owned 23,034,990 shares in the company, valued at approximately $135,445,741.20. This trade represents a 0.09% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bradley J. Gross sold 2,163,790 shares of Stagwell stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $6.04, for a total value of $13,069,291.60. Following the sale, the director directly owned 8,789 shares in the company, valued at $53,085.56. The trade was a 99.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Stagwell

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Kestra Advisory Services LLC acquired a new stake in Stagwell in the 4th quarter valued at $26,000. Tower Research Capital LLC TRC lifted its holdings in shares of Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock valued at $49,000 after acquiring an additional 8,170 shares during the period. Inceptionr LLC bought a new position in shares of Stagwell during the fourth quarter valued at $50,000. CIBC Asset Management Inc acquired a new stake in shares of Stagwell in the 4th quarter valued at $53,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Stagwell in the 3rd quarter valued at $69,000. Institutional investors own 35.61% of the company’s stock.

About Stagwell

(Get Free Report)

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.