Publicis

Publicis will handle the media purchase for Microsoft (up to  USD1bn per year). These contracts typically generate a margin of 3% (ie a potentially USD30m per year for Publicis). The contract was previously handled by Carat (Dentsu group).  In addition, the two groups will continue collaborating on technology, with a focus on agentic AI, strengthening their strategic partnership and positioning Publicis at the forefront of AI-driven marketing solutions.

Expert Opinion:
The gain of that contract is good news and further demonstrates the momentum of Publicis. We are still very surprised by the drop in the share price of Publicis. We understand fears of AI disruption, but we think these concerns are excessive. Publicis has  consistently demonstrated its ability to keep winning contracts and market shares for the last couple of years. Far from being disrupted by the technological aspect of the business, Publicis benefits from it thanks to the acquisitions in the sector made over the years. Publicis trades at a PE ratio below 10x (9.4x for 2026 and 8.9x for 2027). We're back to the COVID-19 lows.  We truly believe current valuation levels are a great opportunity to enter the name for the long run. 

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