Stagwell (NASDAQ:STGW) Shares Gap Down on Disappointing Earnings

Stagwell Inc. (NASDAQ:STGW)’s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.69, but opened at $6.09. Stagwell shares last traded at $5.8680, with a volume of 248,480 shares.

The company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The company had revenue of $704.14 million during the quarter, compared to analysts’ expectations of $700.48 million. Stagwell had a return on equity of 23.73% and a net margin of 0.64%.Stagwell’s revenue for the quarter was up 8.0% on a year-over-year basis. During the same period last year, the firm earned $0.12 earnings per share. Stagwell has set its FY 2026 guidance at 0.980-1.120 EPS.

Key Stagwell News

Here are the key news stories impacting Stagwell this week:

• Positive Sentiment: Adjusted results and revenue growth — Stagwell reported Q1 revenue of ~$704M (up ~8% YoY), adjusted EPS of $0.17 (up ~31% YoY) and adjusted EBITDA of $90M (up 9%), showing improved operating performance. Stagwell Inc. (Nasdaq: STGW) Reports Results for the Three Months Ended March 31, 2026
• Positive Sentiment: Strong commercial traction — record net new business of $141M in Q1 and LTM net new business of $486M, supporting revenue runoff and future growth. Q1 results and net new business
• Positive Sentiment: Digital transformation growth — digital transformation net revenue was $97M (+9% YoY) with a two?year growth stack of ~26%, highlighting higher?margin, strategic revenue growth. Digital transformation metrics
• Positive Sentiment: Product/tech integration move — Stagwell announced a unified technology infrastructure intended to improve service delivery and margins, which may support longer?term efficiency and cross?sell. Stagwell Announces Unified Technology Infrastructure
• Neutral Sentiment: FY26 guidance reiterated — management set FY26 EPS guidance of $0.98–$1.12 (consensus ~$1.01), and reiterated revenue/EBITDA targets and free cash flow conversion goals; guidance is broadly in line with Street expectations but leaves room for range?driven volatility. FY26 guidance and slide deck
• Negative Sentiment: Earnings miss vs. some estimates — reported EPS of $0.17 missed the Zacks/consensus figure of $0.18 by $0.01, prompting near?term selling pressure among precision?focused traders. Stagwell Misses Q1 Earnings Estimates
• Negative Sentiment: GAAP loss and mixed headlines — the company reported a GAAP net loss of ~$13M and some outlets framed the quarter as a revenue or earnings miss, creating headline risk despite positive adjusted metrics. Stagwell earnings in-line but revenue misses estimates

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on STGW shares. Craig Hallum set a $8.00 price objective on Stagwell and gave the stock a “buy” rating in a research report on Wednesday, March 11th. Rosenblatt Securities reiterated a “buy” rating and issued a $9.00 price objective on shares of Stagwell in a research report on Wednesday, March 11th. Weiss Ratings upgraded Stagwell from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, March 16th. B. Riley Financial cut their price objective on Stagwell from $9.00 to $7.00 and set a “buy” rating on the stock in a research report on Friday, March 6th. Finally, Wall Street Zen lowered Stagwell from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Five investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Stagwell presently has a consensus rating of “Moderate Buy” and a consensus price target of $7.96.

Institutional Investors Weigh In On Stagwell

Several hedge funds have recently made changes to their positions in STGW. Kestra Advisory Services LLC bought a new stake in shares of Stagwell during the fourth quarter valued at approximately $26,000. Clearstead Advisors LLC boosted its position in shares of Stagwell by 186.2% during the fourth quarter. Clearstead Advisors LLC now owns 7,020 shares of the company’s stock valued at $34,000 after purchasing an additional 4,567 shares in the last quarter. State of Alaska Department of Revenue bought a new stake in shares of Stagwell during the third quarter valued at approximately $47,000. Tower Research Capital LLC TRC boosted its position in shares of Stagwell by 311.8% during the second quarter. Tower Research Capital LLC TRC now owns 10,790 shares of the company’s stock valued at $49,000 after purchasing an additional 8,170 shares in the last quarter. Finally, Inceptionr LLC bought a new stake in shares of Stagwell during the fourth quarter valued at approximately $50,000. 35.61% of the stock is currently owned by institutional investors.

Stagwell Stock Up 1.4%

The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.71. The company has a market capitalization of $1.61 billion, a P/E ratio of 79.44 and a beta of 1.28. The company has a 50-day moving average of $6.06 and a two-hundred day moving average of $5.58.

About Stagwell

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.