Dentsu Group Inc

XMUN:DEN

Results: Dentsu’s second quarter was broadly in line with expectations, with organic growth flat and operating margin slightly ahead at 11.9%.

Japan strength: Japan remained the standout, with 5.4% organic growth in the quarter, a record high in net revenue, and 13 straight quarters of positive growth.

Americas weakness: The Americas came in a bit below plan, hurt mainly by Creative and a softer CXM business, leading management to lower its full-year regional growth outlook.

Guidance: Full-year consolidated guidance was reiterated at 0% to 1% organic growth and operating margin in the 13% range, with no change to the no-dividend forecast.

Midterm plan: Dentsu pushed its 16% operating margin target out to fiscal 2028, saying it does not want to overreach and compromise AI and data investment.

AI push: Management highlighted AI-for-Growth 3.0 in Japan and broader international AI initiatives, but said the financial impact of AI is hard to measure directly.

Cost actions: The company said it has already completed about 3,000 of roughly 3,400 planned workforce reductions, and continues to simplify the organization and cut head office costs.