Stagwell Raises 2026 Guidance on Software Shift

The marketing firm lifted its full-year adjusted EBITDA outlook after its third quarter 2026 earnings call.

Updated on Nov. 2, 2026 in Advertising

Stagwell Raises 2026 Guidance on Software Shift

Stagwell raised its full-year 2026 adjusted EBITDA guidance to a range of $490 million to $540 million following its third quarter earnings call on October 29, 2026. The company also won a subcontracting role with CACI supporting work for U.S. Central Command.

Why it matters

The guidance increase is attributed to a shift toward software and artificial intelligence transformation services, which is expanding operating margins and driving record net new business. For U.S. advertisers and marketers, the move signals growing demand for technology-led marketing services over traditional agency work.

Stagwell reported Digital Transformation organic growth of 23% and a 30% two-year stack, while Marketing Cloud organic net revenue rose 108% to $56 million. The company's CACI-related win is valued at $1.5 billion over five years, though the portion attributable to Stagwell is not broken out.

The players

Stagwell

A marketing and communications holding company that operates agencies and technology platforms, and that raised its 2026 guidance on the strength of its software and AI transformation business.

CACI

A defense contractor that provides technology and intelligence services to the U.S. government, and that awarded Stagwell the subcontract tied to work for U.S. Central Command.

The details

Stagwell held its third quarter 2026 earnings call on October 29, 2026, where it raised its full-year adjusted EBITDA guidance. The company also said it will serve as prime subcontractor to CACI for work with the U.S. Central Command, a contract the extraction places at $1.5 billion over five years.

October 29, 2026: Stagwell holds its third quarter 2026 earnings call and raises full-year guidance.
2027: Management doubles its enterprise tech bookings goal to $150 million.

Market Landscape

Stagwell's results reflect a broader move among advertising holding companies away from labor-based agency billings toward software and AI-driven transformation work. The company's gains in its Marketing Cloud segment place it in a competitive push to capture higher-margin technology revenue within the marketing services sector.

For advertisers, the shift toward software-driven marketing services may change how agency fees are structured and which capabilities firms prioritize. Marketers evaluating agency partners may increasingly see technology platforms bundled with traditional creative and media work.

The takeaway

Revenue growth from software and AI services is increasingly what separates high-margin marketing firms from traditional agencies. Businesses reviewing agency relationships should ask how much of a provider's offering is technology-driven.