Publicis Groupe has touted a strong first quarter, reporting a 9.4% increase in net revenue and organic growth of +4.9%, And the agency giant remains bullish on its 2025 guidance despite US tariffs and ongoing economic volatility in global markets.

According to the latest Publicis Q1 financials, all regions performing well despite challenging global context, with record new business run including 12 material wins offsetting deteriorating macroeconomic conditions. Net revenue was up +4.9% to €3.535 billion, including a +4.8% lift in Asia-Pacific net revenue to €286 million. This included +7.5% growth overall and +4.8% organic growth.

Off the back of the results, Publicis reaffirmed its full-year 2025 guidance of organic growth of between +4-5%, plus a slight improvement in margin vs. industry-high level of 18% in 2024. It’s also forecast €1.9 to €2.0 billion free cash flow generation.

“We kickstarted 2025 with a record new business run, with a dozen material wins across diverse sectors, geographies and expertise. This performance, placing us at the top of the [JP Morgan research] rankings once again, will allow us to offset the potential effects of the deteriorating macroeconomic context,” Arthur Sadoun, Chairman and CEO of Publicis Groupe said. “It makes us extremely confident in delivering our 4-5% organic growth guidance for the year, translating to 6-7% at constant currency, including acquisitions.”

Over the first months of 2025, Publicis invested half a billion euros in data, creators and digital media. Locally, this included acquiring one of Australia’s biggest indie media shops, Atomic212 and its CoreAI platform. Globally, acquisitions also included identity solution vendor, Lotame, and Canadian AI and data solutions player, Moov AI, in March, plus Latin American influencer marketing agency, BR Media Group in February.

“This reinforces our position as a Category of One to deliver innovation and differentiation for our clients, and opening new addressable markets for us,” said Sadoun.

Across categories, healthcare is Publicis Groupe’s biggest global contributor of revenue at 15%, followed by automotive (13%), financial services (13%) and food and beverage (13%).

“Looking ahead, we have never been in a stronger position to help our clients, in the good times, and even more importantly, in the challenging ones. Thanks to the best identity graph in the industry, they can accelerate their growth by building direct relationships with their customers and their prospects. With our unique connected media ecosystem, they can optimize their investments and link them to business outcomes. Our production backbone enables them to minimise waste, and maximize creative asset reuse. And with our 25,000 engineers, they can future-proof their business in the age of AI.

“These unique competitive advantages, and our diversified revenue mix that continues to withstand business cycles, mean that today we are confident in outperforming not only in 2025 - for the 6th year in a row - but also beyond, in what will be a shrinking competitive landscape.”

Madison & Wall analyst described the bullish forecasts as notable in the context of a likely softening global economy and advertising market.

“Management characterised the low end of its range as occurring in the event of a sustained reduction in budget visibility and negative growth at Sapient with the high end occurring if clients regain visibility,” the analysts commented.

“Market share gains led by a commercial product focus leading to new business wins and scope expansions are undoubtedly driving these figures, which are not likely going to be achieved by the company’s direct competitors this year.”

As well as solid growth through acquisitions, Madison & Wall said Publicis’ “Connected Media” business appears to continue to perform well, rising by high single digits. Creative is relatively resilient too, also growing at high single digit levels in the most recent quarter, presumably because of market share gains and scope expansions.

By contrast, Publicis did report a drop in single digits of technology notably in North America, which it attributed to a ‘continued wait-and-see attitude from clients’.