Stagwell (NASDAQ:STGW) Shares Gap Up on Better-Than-Expected Earnings

Shares of Stagwell Inc. (NASDAQ:STGW) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $5.24, but opened at $6.46. Stagwell shares last traded at $6.4640, with a volume of 1,059,378 shares traded.

The company reported $0.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.01. Stagwell had a return on equity of 15.31% and a net margin of 0.68%.The company had revenue of $807.44 million for the quarter, compared to the consensus estimate of $813.48 million. During the same period in the previous year, the business earned $0.24 EPS. The firm’s revenue was up 2.4% compared to the same quarter last year. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS.

Stagwell News Roundup

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Management increased the share repurchase program by $350 million, leaving $400 million available — a clear signal of confidence in cash flow and shareholder returns that typically supports the stock. Stagwell Inc. (NASDAQ:STGW) Reports Results for the Three and Twelve Months Ended December 31, 2025
• Positive Sentiment: FY2026 guidance calls for net revenue growth of 8–12%, adjusted EBITDA of $475–$525M and EPS guidance of $0.98–$1.12 — management tied growth to AI, advocacy and marketing cloud expansion, giving investors a higher-growth narrative for next year. Stagwell outlines 8–12% net revenue growth target for 2026 as AI, advocacy, and buybacks accelerate
• Positive Sentiment: Stagwell formed a strategic partnership with AppLovin to add Axon mobile/ad tech to its media stack — this should improve mobile targeting, measurement and client ROI, supporting revenue mix improvement in performance marketing. Stagwell (STGW) Announces Strategic Partnership with AppLovin to Accelerate Client Advantage in Performance Marketing
• Positive Sentiment: Street support: Needham reiterated a Buy rating, which can help sustain investor interest following the print. Needham Remains a Buy on Stagwell (STGW)
• Neutral Sentiment: Quarter was mixed: Q4 EPS of $0.30 beat consensus $0.29, but revenue of ~$807M slightly missed estimates (~$813M). Management highlighted net new business wins and improved FCF conversion, tempering the revenue miss. Stagwell (STGW) Q4 Earnings and Revenues Top Estimates
• Neutral Sentiment: Brand/AI recognition (Code and Theory on Ad Age A-List) supports the company’s AI/transformation story but is a longer-term catalyst rather than immediate earnings upside. Code and Theory Recognized by Ad Age A-List for Leading Transformation in the AI Era

Analysts Set New Price Targets

STGW has been the topic of a number of research analyst reports. Weiss Ratings restated a “sell (d+)” rating on shares of Stagwell in a report on Monday, December 29th. Wall Street Zen downgraded shares of Stagwell from a “buy” rating to a “hold” rating in a research report on Saturday. B. Riley Financial cut their target price on shares of Stagwell from $9.00 to $7.00 and set a “buy” rating on the stock in a research note on Friday, March 6th. Zacks Research cut shares of Stagwell from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Finally, Seaport Research Partners raised shares of Stagwell to a “strong-buy” rating in a research note on Friday, November 14th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $7.96.

Hedge Funds Weigh In On Stagwell

Institutional investors have recently modified their holdings of the company. Campbell & CO Investment Adviser LLC lifted its holdings in shares of Stagwell by 3.2% in the 3rd quarter. Campbell & CO Investment Adviser LLC now owns 68,821 shares of the company’s stock worth $387,000 after purchasing an additional 2,118 shares in the last quarter. Parkside Financial Bank & Trust increased its stake in Stagwell by 43.0% during the 2nd quarter. Parkside Financial Bank & Trust now owns 9,981 shares of the company’s stock valued at $45,000 after purchasing an additional 3,003 shares in the last quarter. Coldstream Capital Management Inc. increased its stake in Stagwell by 4.1% during the 2nd quarter. Coldstream Capital Management Inc. now owns 77,890 shares of the company’s stock valued at $351,000 after purchasing an additional 3,070 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Stagwell by 6.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 52,193 shares of the company’s stock worth $316,000 after buying an additional 3,249 shares during the last quarter. Finally, Ameritas Investment Partners Inc. raised its holdings in Stagwell by 51.6% during the second quarter. Ameritas Investment Partners Inc. now owns 11,790 shares of the company’s stock worth $53,000 after buying an additional 4,013 shares during the last quarter. 35.61% of the stock is owned by institutional investors and hedge funds.

Stagwell Price Performance

The stock has a market capitalization of $1.55 billion, a P/E ratio of 102.67 and a beta of 1.71. The business’s 50 day simple moving average is $5.40 and its two-hundred day simple moving average is $5.32. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.98.

Stagwell Company Profile

Stagwell Inc is a modern marketing and communications network that partners with global organizations to drive brand growth through data-driven insights and creative solutions. The company operates a diversified portfolio of specialized agencies and technology platforms, offering services that span digital marketing, advertising, public relations, consumer and market research, social media strategy, and commerce consulting. By integrating research, creative, media, and technology under a unified network, Stagwell aims to deliver end-to-end marketing solutions tailored to the evolving needs of clients in sectors such as technology, healthcare, consumer goods, and financial services.

Founded in 2015 by long-time political strategist and pollster Mark Penn, Stagwell has expanded organically and through strategic acquisitions to build capabilities across the marketing value chain.