Stagwell Raises 2026 Guidance on AI-led Growth and Record Net New Business
Jul 30, 2026, 7:17 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
Raised 2026 adj EPS guidance and strong net new business signal sustained demand and potential margin improvement, despite a GAAP loss. This combination tends to drive near-term upside, especially with AI-enabled service strengths and multiple large-name client wins cited. Historical precedent shows that guidance upgrades around robust quarterly results often yield outsized moves, particularly when cash flow and buyback activity support the thesis.
AI summary
What happened, with direct paths to the underlying reporting
Stagwell reported a strong Q2 with revenue of $786M (+11% YoY) and adjusted EPS of $0.25, while GAAP earnings were a loss of $0.03 per share. Digital Transformation grew 18% organically, driving a 2-year digital transformation growth stack of 34%. Record net new business of $171M and a raised 2026 adj EPS guidance of $1.03-$1.17 support a bull case for incremental multiple expansion driven by AI-enabled capabilities and client wins (IBM, Adobe, Mondelez, Heineken).
STGW Q2 Revenue $786M, up 11% YoY; Net Revenue $632M, up 6% YoY.
Digital Transformation net revenue $107M, organic +18%; 2-year stack 34%.
Net New Business $171M in Q2; LTM Net New Business $540M; raised 2026 guidance.
2026 Adj EPS guidance raised to $1.03-$1.17; 8-12% total net revenue growth.
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