Interpublic Group revenue tops $2.49 billion in Q3, as AI investments pay off

Interpublic Group, one of the world’s largest advertising holding companies, reported third-quarter results on Monday that surpassed expectations, buoyed by steady spending from clients in the media and health care sectors.

The company posted revenue of $2.49 billion for the quarter, and noted that ongoing investments in data and artificial intelligence were beginning to streamline its operations and sharpen client offerings.

As artificial intelligence upends the advertising landscape, legacy firms like Interpublic have been racing to reinvent themselves. The surge in AI-driven tools that allow companies to generate ads faster and at lower cost has squeezed traditional agencies, forcing them to build their own technology platforms to stay competitive.

Interpublic has responded by integrating systems such as Interact, an AI-powered platform that brings together data, creative and media functions to enable more personalized marketing campaigns.

Still, the transformation has come with costs. The company said it reduced its workforce by about 800 employees in the third quarter and began a broader restructuring effort in early 2025 aimed at cutting expenses. Interpublic expects to record total restructuring charges of $450 million to $475 million, some of which will be non-cash, by the end of next year.

The changes come amid major consolidation in the industry. Last year, rival advertising titan Omnicom announced a $13.5 billion deal to acquire Interpublic, a merger expected to close by the end of November 2025. If completed, the deal would create the world’s largest advertising network — an acknowledgment of how traditional ad holding companies are banding together to compete with Big Tech and the accelerating advance of artificial intelligence.