Organon Q1 revenue and adjusted EPS miss estimates

Organon & Co.

30/04/2026 12:44

Overview

U.S. healthcare firm's Q1 revenue fell 4% yr/yr, missing analyst expectations

Adjusted EPS for Q1 declined 30% yr/yr and missed analyst expectations

Company cited Women's Health declines and pricing pressure as key drivers of lower results

Outlook

Organon will not provide financial guidance due to its pending merger with Sun Pharma

Result Drivers

WOMEN'S HEALTH DECLINES - Revenue from Women's Health fell, driven by lower Nexplanon sales due to decreased U.S. physician demand after five-year label approval, delayed reinsertions, and uncertainty around federal funding, as well as weaker oral contraceptive sales from market contraction in China and shipment timing in Asia Pacific

PRICING PRESSURE AND GUIDELINE CHANGES - Established Brands revenue declined, with respiratory portfolio affected by pricing pressure and lower volumes due to revised medical guidelines deprioritizing montelukast, including Singulair, especially in China

BIOSIMILARS GROWTH - Biosimilars revenue increased, supported by strong U.S. demand for Hadlima and contributions from new assets approved or acquired in 2025

Company press release: ID:nBw2KgpdTa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$1.46 bln
$1.48 bln (5 Analysts)
Q1 Adjusted EPS
Miss
$0.71
$0.83 (7 Analysts)
Q1 EPS
$0.55
Q1 Adjusted Net Income
Miss
$188 mln
$212.76 mln (5 Analysts)
Q1 Net Income
$146 mln
Q1 Adjusted EBITDA
Miss
$415 mln
$441 mln (3 Analysts)
Q1 Gross Margin
53.60%
Q1 Adjusted EBITDA Margin
28.40%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy."

Wall Street's median 12-month price target for Organon & Co is $9.00, about 32.5% below its April 29 closing price of $13.34

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 2 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)