(Reuters) -Ad group Interpublic surpassed analysts’ estimates for second-quarter revenue and profit on Tuesday, thanks to resilient marketing spend from clients, sending its shares up nearly 5%. The results are the latest sign that ad spending is holding firm in an uncertain economy, after French ad giant Publicis and Omnicom also reported upbeat earnings. Increasing use of AI for creating ads has sparked worries about the industry that has long been the creative voice for brands. Interpublic benefited in the April-June quarter from strong spending from its media and healthcare-focused businesses, as well as growth in its sports marketing and public relations units, CEO Philippe Krakowsky said. The company, which last year signed a $13.25 billion merger with Omnicom to create the world’s largest ad agency and better navigate the changing industry landscape, also said it expects the deal to close in the second half of the year. Interpublic’s media services are managed through IPG Mediabrands, which includes brands such as Initiative and Mediahub. Its healthcare marketing is managed under the unified IPG Health network. The company reported second-quarter revenue of $2.54 billion, compared with analysts’ average estimate of $2.17 billion, according to data compiled by LSEG. Its adjusted profit per share of 75 cents also beat the estimate of 56 cents. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if PUBP is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

(Reuters) - Paychex (NASDAQ:PAYX) on Wednesday slightly missed Wall Street estimates for third-quarter revenue, as businesses cut back on spending for human capital management services amid economic uncertainty. Shares of the Rochester, New York-based company about 2% in premarket trading. While the U.S. labor market has remained stable, the outlook is darkening for economic growth amid rising trade tensions and deep cuts in government spending, impacting demand for companies like Paychex. Still-high interest rates and policy uncertainty, especially around import tariffs, are making companies cautious about increasing headcount and prompting businesses to cut spending. Paychex, which has more than 745,000 clients in the U.S. and Europe, offers HR outsourcing, human capital management technology, payroll processing, and retirement and insurance solutions. In January, the company announced it would acquire payroll processing firm Paycor (NASDAQ:PYCR) HCM for about $4.1 billion in cash in a deal expected to close in April 2025. The deal reflects a broader consolidation trend in the payroll and HR industry with payroll firm Automatic Data Processing (NASDAQ:ADP) in October purchasing management services provider WorkForce Software for around $1.2 billion. Paychex cut its forecast for revenue growth from its Professional Employer Organization and Insurance Solutions business to a range of 6.0% to 6.5%, from 7.0% to 9.0% guided previously. The company posted total revenue of $1.51 billion for the quarter ended February 28, falling short of analysts’ estimate of $1.52 billion, according to data compiled by LSEG. On an adjusted basis, the company reported third quarter profit of $1.49 per share, compared with estimates of $1.48 per share.