Stagwell (STGW) Stock Forecast & Price Target

Stagwell Inc reported a significant increase in net new wins of 21% year-over-year in the third quarter of 2025, which indicates strong client acquisition momentum. The company’s gross revenues rose 4% year-over-year to $743 million, complemented by a 6% increase in net revenues to $614.5 million, showcasing robust financial performance across its segments. Additionally, the growth in the Marketing Services segment, which saw an 11% year-over-year increase, along with a notable partnership with Palantir, positions Stagwell favorably in the rapidly evolving marketing landscape.

Stagwell Inc. has experienced a decline in its adjusted EBITDA margin, falling to 18.6% from 19.3% in the previous quarter, indicating potential operational challenges amidst broader industry headwinds. The company faces significant downside risks due to macroeconomic pressures, which could further slow advertising spending as client uncertainty leads to elongated decision-making processes. Additionally, Stagwell's operating income reported a 14% shortfall compared to estimates, highlighting deteriorating profitability that may adversely affect investor confidence.