Stagwell (NASDAQ:STGW) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Posted by on Oct 31st, 2026

Stagwell (NASDAQ:STGW – Get Free Report) posted its earnings results on Thursday. The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.03, FiscalAI reports. Stagwell had a net margin of 0.31% and a return on equity of 29.18%. The business had revenue of $816.03 million for the quarter, compared to analysts’ expectations of $838.38 million. During the same quarter in the previous year, the firm posted $0.24 earnings per share. The firm’s revenue for the quarter was up 9.8% on a year-over-year basis.

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 Price Performance

Stagwell stock traded up $0.52 during trading hours on Friday, hitting $10.47. 4,163,476 shares of the stock were exchanged, compared to its average volume of 1,796,111. The stock has a market capitalization of $2.56 billion, a P/E ratio of 261.82 and a beta of 1.30. The business’s 50-day moving average is $8.72 and its two-hundred day moving average is $7.17. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.81 and a current ratio of 0.81. Stagwell has a 12 month low of $4.28 and a 12 month high of $10.61.

Trending Headlines about Stagwell

Here are the key news stories impacting Stagwell this week:

  • Positive Sentiment: Raised outlook strengthens the growth story: Stagwell increased its 2026 adjusted EPS guidance to $1.07–$1.21 and highlighted plans to generate $150 million in enterprise technology bookings in 2027. Management also reiterated its ambition to become the “number one in marketing transformation,” supporting optimism around its Marketing Cloud and technology businesses. Stagwell targets 2027 enterprise technology bookings
  • Positive Sentiment: Third-quarter profit exceeded expectations: Stagwell reported adjusted EPS of $0.34, ahead of the $0.31 consensus estimate and up from $0.24 a year earlier. Revenue increased 9.8% year over year to $816.0 million, while the company indicated that Marketing Cloud performance helped drive the earnings beat. Stagwell Q3 earnings report
  • Positive Sentiment: Analyst confidence increased: Wells Fargo raised its price target from $10 to $12 and assigned an “overweight” rating. Needham also raised its target to $12 and initiated or reaffirmed a “buy” rating, while B. Riley reaffirmed “buy” and lifted its target to $12. The coordinated target increases provide additional support for the stock’s upward move. Wells Fargo analyst update
  • Neutral Sentiment: Revenue was below expectations: Quarterly revenue of $816.0 million fell short of the approximately $838.4 million consensus estimate. Although year-over-year growth remained solid, the miss indicates that stronger profitability and guidance—not broad-based revenue outperformance—are the primary reasons investors are responding positively.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. Wells Fargo & Company lifted their price objective on Stagwell from $10.00 to $12.00 and gave the company an “overweight” rating in a report on Friday. Rosenblatt Securities increased their target price on Stagwell from $9.00 to $10.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. The Goldman Sachs Group began coverage on Stagwell in a research report on Monday, October 5th. They set a “buy” rating and a $13.00 target price for the company. Weiss Ratings raised Stagwell from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Finally, Needham & Company LLC boosted their price target on Stagwell from $10.00 to $12.00 and gave the company a “buy” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $11.17.

Read Our Latest Analysis on Stagwell

Stagwell Company Profile

(Get Free Report)

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.

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Earnings History for Stagwell (NASDAQ:STGW)

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