Organon & Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did OGN Beat Earnings? Q4 2025 Results
Organon closed out 2025 on a difficult note, with fourth-quarter results falling short on both the top and bottom lines as a $301 million non-cash goodwill impairment charge tied to underperforming U.S. products dominated the headline story. Adjusted EPS came in at $0.63, missing the $0.76 consensus estimate by 17.11%, while revenue of $1.51 billion edged just below the $1.52 billion consensus and declined 5.3% year over year. The impairment swung Q4 to a GAAP net loss of $205 million, against net income of $109 million a year earlier. Women's Health, the company's flagship franchise, bore considerable weight as Nexplanon revenue dropped 20% on a constant-currency basis, pressured by U.S. policy-related access restrictions and roughly $17 million in lost wholesaler sales. Biosimilars offered a rare bright spot, growing 11% on the strength of Hadlima and newly launched assets. Looking ahead, Organon guided for approximately $6.20 billion in 2026 revenue and roughly $1.90 billion in adjusted EBITDA, both essentially flat with 2025, while a recently announced licensing deal for a hormone-free copper IUD signals continued investment in rebuilding its women's health portfolio.
- Hadlima drove strong biosimilars growth
- Emgality and Vtama contributed to Established Brands revenue
- U.S. policy-related access restrictions negatively impacted Nexplanon sales
- Cessation of certain U.S. wholesaler sales practices reduced Nexplanon by approximately $17 million
- Pricing pressure and foreign exchange adversely affected gross margins
- Respiratory portfolio declined due to pricing pressure and adoption of revised medical guidelines deprioritizing montelukast
- Non-cash goodwill impairment of $301 million related to U.S. product underperformance
- One-time manufacturing and supply network optimization costs compressed reported gross margin
“In 2025 we took action that demonstrated our commitment to improving the balance sheet and to building more financial flexibility.”
Organon CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Organon expects revenue of approximately $6.2 billion and Adjusted EBITDA of approximately $1.9 billion, both in-line with 2025 performance. The company expects the annual revenue foregone from the JADA system divestiture to be approximately offset by favorable currency translation, resulting in constant currency revenue growth about flat with prior year pro forma for the divestiture. Adjusted gross margin is expected to be 75-100 basis points lower than 2025. SG&A is expected in the mid-20% range, R&D in the mid-single digit range. Interest expense is expected at approximately $500 million. The effective non-GAAP tax rate is expected to be 27.5%-29.5%, up from 24.4% in 2025. Fully diluted weighted average shares are expected at approximately 265 million.
OGN YoY Financials
OGN Revenue by Segment
OGN Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.