Organon (OGN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.46 billion, down 4% year-over-year, with a 5% positive FX impact; net income rose to $146 million, up 68% from Q1 2025, with diluted EPS at $0.55.

• Adjusted EBITDA was $415 million, margin 28.4%.

• The company divested the Jada System for up to $465 million, recognizing an $81 million net gain.

• A definitive merger agreement was signed with Sun Pharma for a $14.00 per share cash acquisition, expected to close in early 2027, pending regulatory and shareholder approval.

Financial highlights

• Gross profit decreased 7% to $783 million due to unfavorable pricing, product mix, and FX; gross margin was 53.6% (down from 55.6%).

• Operating cash flow was $225 million, up from $75 million in Q1 2025, driven by active cash cycle management and Jada proceeds.

• Cash and cash equivalents increased to $1.12 billion as of March 31, 2026; debt was $8.57 billion.

• Effective tax rate rose to 31.4% from 13.4% due to U.S. tax law changes and the Jada sale.

• Adjusted diluted EPS was $0.71, down from $1.02 in Q1 2025.

Outlook and guidance

• No financial guidance provided due to pending merger.

• Ongoing volume-based procurement in China and loss of exclusivity are expected to pressure sales in coming quarters.

• The company anticipates continued negative impact from regulatory and market changes, and is adapting business strategies accordingly.