New York-based The Interpublic Group of Companies, Inc. (IPG) provides advertising and marketing services. Valued at a market cap of $9.6 billion, the company delivers a wide range of services, including advertising, creative development, media planning & buying, public relations, digital marketing, data & analytics, experiential marketing, health & wellness communications, and brand consulting. It is scheduled to announce its fiscal Q3 earnings for 2025 in the near future. 

Ahead of this event, analysts expect this advertising and marketing services provider to report a profit of $0.71 per share, up 1.4% from $0.70 per share in the year-ago quarter. The company has met or surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. In Q2, IPG’s EPS of $0.75 exceeded the forecasted figure by a notable margin of 36.4%  

For the current fiscal year, ending in December, analysts expect IPG to report a profit of $2.88 per share, up 4% from $2.77 per share in fiscal 2024. Furthermore, its EPS is expected to grow 5.9% year-over-year to $3.05 in fiscal 2026.

IPG has declined 16.1% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 14.3% return and the Communication Services Select Sector SPDR Fund’s (XLC) 26% uptick over the same time frame.

On Jul. 22, shares of IPG soared almost 7% after its Q2 earnings release. The company reported total revenue of $2.5 billion, down 6.4% year-over-year, primarily due to lower organic revenue tied to prior-year client account activity. Despite the revenue decline, IPG delivered strong adjusted margins, reflecting solid progress in its strategic transformation program and improved operating performance across its two largest business units. Its adjusted EBITA (before restructuring charges and deal costs) rose 16.2% from the year-ago period to $393.7 million, while its adjusted EPS of $0.75 beat analyst estimates by an impressive 36.4%. Looking ahead, IPG expects to achieve an adjusted EBITA margin for fiscal 2025 significantly above the previously guided 16.6%, signaling continued momentum in profitability.

Wall Street analysts are moderately optimistic about IPG’s stock, with a "Moderate Buy" rating overall. Among nine analysts covering the stock, four recommend "Strong Buy," and five suggest "Hold.” The mean price target for IPG is $31.16, implying an 18.5% potential upside from the current levels.