Dentsu Inc. reported a statutory net loss of ¥61.5 billion for Q3 2025, but the advertising giant still delivered a strong operational performance, recording a 14.1% rise in underlying operating profit to ¥111 billion. The results reflect the early impact of its ongoing cost-efficiency and restructuring initiatives.
Japan remained the company’s strongest pillar, reporting 6.8% organic growth and cushioning declines across international markets. Performance in the Americas, EMEA, and APAC continued to contract, underscoring the challenge of reviving momentum outside Dentsu’s home market. Across the first nine months of 2025, the company posted a modest organic growth rate of 0.3%.
To address its global shortfall, CEO Hiroshi Igarashi is steering the organisation toward a new Media++ strategy. The approach aims to integrate media with CXM, creative, and data-technology capabilities, offering clients an end-to-end ecosystem of services. CFO Shigeki Endo noted that the company will continue to streamline operations and reduce costs as part of its path toward achieving an operating margin of 16–17% by 2027.
While total revenue dipped slightly to ¥851.3 billion, Dentsu’s operating margin improved by 170 basis points to 13.0%. The company has also raised its full-year underlying operating profit forecast to ¥161.2 billion. Still, Dentsu acknowledges that international market softness and the execution demands of its new strategy remain key risks as it charts its next phase of growth.
