Havas has identified India as its largest market in Asia Pacific, overtaking China, as the advertising and communications group navigates uneven regional performance and intensifies its focus on productivity, artificial intelligence and integrated client offerings.
“India is our first country of the region, ahead of China, which was not the case before,” François Laroze, chief financial officer and chief operating officer of Havas, said during the company’s third-quarter 2026 earnings call.
Laroze highlighted India’s performance as a bright spot in a region that recorded an organic revenue decline of 6.7% during the quarter. For the first nine months of 2026, Asia Pacific’s organic revenue was down 5.5%, with the weakness split broadly between China and the Middle East.
The company did not disclose India-specific revenue or growth figures during the call.
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Artificial intelligence is also a component of Havas’s strategy to improve productivity and manage costs, alongside tighter headcount controls and greater efficiency across its operations. The group said its headcount was declining organically at the end of the third quarter, which Laroze described as evidence of improving productivity.
Havas reports 2.4% organic growth in Q3
Havas reported net revenue of €703 million in the third quarter, up 7.2% year on year on a reported basis. Organic growth was 2.4%, while acquisitions contributed 3.2 percentage points and foreign exchange movements added 1.6 percentage points.
For the first nine months of 2026, reported revenue growth stood at 3.1%, including organic growth of 2.5%. Acquisitions contributed another 2.5 percentage points, while foreign exchange movements had a negative impact of 1.9%.
The company said its organic growth performance at the end of September was in line with its full-year guidance.
North America remained the strongest-performing region, with organic growth of 7.5% in the third quarter and 7.1% for the first nine months. Europe recorded 1.7% growth during the quarter, supported by France, Spain and Poland, while the United Kingdom underperformed other European markets.
Asia Pacific and Africa declined 6.7% in the quarter, while Latin America contracted 4.2%, reflecting weaker performances in Mexico and Peru. Brazil and Chile continued to perform well.
AI, cost management and acquisitions underpin strategy
Havas said its operational priorities remain organic growth, acquisitions and cost management. Investments in technology and AI form part of its efforts to improve efficiency across the group.
The company is also expanding its integrated service offering through cross-selling across creative, media, production, data, public relations and events. Laroze said the group was accelerating cross-selling around services such as Havas Play and its Proof and Pixel production capabilities.
The strategy is intended to deepen relationships with existing clients and win larger, integrated assignments rather than individual service mandates.
Acquisitions remain another important component of the group’s growth strategy. Havas completed eight acquisitions in the first nine months of 2026, including SportVibes in the third quarter, and said it was targeting around 10 acquisitions for the full year.
The acquisitions are expected to contribute approximately €40 million to €50 million in annual revenue and generally deliver profitability above the group’s average
Havas said the acquired businesses’ earnings profiles were also contributing to its efforts to improve margins.
Havas reaffirmed its full-year 2026 guidance, targeting organic growth of 2% to 3% and an adjusted EBIT margin of 13.2% to 13.5%, representing an improvement of 30 to 60 basis points. The group also reiterated its target of a dividend payout ratio of around 40%.
For 2028, Havas is targeting an adjusted EBIT margin of 14% to 15%, while maintaining its dividend payout objective.
The company said its financial position also allowed it to make opportunistic investments in media and publishing businesses. It recently acquired a little over 1.2% of Canal+ for €30 million and previously purchased a 2.6% stake in Louis Hachette Group for €43 million.
Laroze said these investments were financial in nature and would not affect Havas’s agency acquisition strategy.
North America remains strong; healthcare faces headwinds
Havas’s North American performance was driven primarily by its creative business, alongside continued strength in media. Laroze cited the performance of Uncommon, the creative agency acquired in the United Kingdom two years ago and subsequently expanded into the United States.
Healthcare was weaker during the quarter, primarily because some pharmaceutical clients decided not to proceed with planned launches of new molecules. Laroze said new-molecule launches account for roughly 20% of Havas Health’s business.
The company does not expect a strong recovery in healthcare during the fourth quarter, although it is working to mitigate the impact of delayed or cancelled launches. It also expects the loss of the Sanofi US media assignment to weigh on its business, while expressing confidence that recent and future client wins could help offset the impact over several quarters.
In the Middle East, Havas reported deterioration in Saudi Arabia, particularly in tourism-related business, while its Dubai operation showed resilience. Despite near-term uncertainty, the group said it remained committed to investing in Saudi Arabia and other markets in the region.
For Havas, India’s emergence as its largest Asia Pacific market offers a positive counterpoint to the broader regional slowdown, even as AI-led efficiency, integrated services and disciplined acquisitions remain central to its wider operating strategy.
Havas Chairman and CEO Yannick Bolloré said the group’s performance reflected the resilience of its client-centric model despite an uncertain macroeconomic and geopolitical environment.
“We remain firmly focused on our strategic priorities: advancing the deployment of our Converged.AI Operating System, investing responsibly in AI and preparing our talent for the continued transformation of our industry,” Bolloré said.
He added that Havas was working to bring its talent, expertise and solutions together more seamlessly across the group to help clients build more desirable brands and strengthen its position as a trusted business partner.
Bolloré also highlighted the role of acquisitions in expanding the group’s capabilities and supporting growth, saying Havas would remain active in pursuing selected opportunities aligned with its long-term strategy.
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First Published on October 15, 2026, 07:50:51 IST
