Organon (NYSE:OGN) Reports Q4 CY2025 In Line With Expectations

Organon (NYSE:OGN) Reports Q4 CY2025 In Line With Expectations

Kayode Omotosho

Thu, February 12, 2026 at 10:01 PM GMT+9 5 min read

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Pharmaceutical company Organon (NYSE:OGN) met Wall Street’s revenue expectations in Q4 CY2025, but sales fell by 5.3% year on year to $1.51 billion. The company’s full-year revenue guidance of $6.2 billion at the midpoint came in 1.5% above analysts’ estimates. Its non-GAAP profit of $0.63 per share was 13.3% below analysts’ consensus estimates.

Is now the time to buy Organon? Find out in our full research report.

Organon (OGN) Q4 CY2025 Highlights:

**Revenue:** $1.51 billion vs analyst estimates of $1.51 billion (5.3% year-on-year decline, in line)

**Adjusted EPS:** $0.63 vs analyst expectations of $0.73 (13.3% miss)

**Adjusted EBITDA:** $383 million vs analyst estimates of $390.2 million (25.4% margin, 1.8% miss)

**EBITDA guidance for the upcoming financial year 2026** is $1.9 billion at the midpoint, in line with analyst expectations

**Operating Margin:** -9.8%, down from 18.1% in the same quarter last year

**Market Capitalization:** $2.00 billion

“In 2025 we took action that demonstrated our commitment to improving the balance sheet and to building more financial flexibility,” said Joe Morrissey, Organon’s interim Chief Executive Officer.

Company Overview

Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women’s health, Organon (NYSE:OGN) is a global healthcare company focused on improving women’s health through prescription therapies, medical devices, biosimilars, and established medicines.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Organon struggled to consistently increase demand as its $6.22 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a sign of poor business quality.

Organon Quarterly Revenue

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Just like its five-year trend, Organon’s revenue over the last two years was flat, suggesting it is in a slump.

Organon Year-On-Year Revenue Growth

This quarter, Organon reported a rather uninspiring 5.3% year-on-year revenue decline to $1.51 billion of revenue, in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to decline by 3.5% over the next 12 months, a deceleration versus the last two years. This projection doesn’t excite us and implies its products and services will see some demand headwinds.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Organon has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 21.7%.

Looking at the trend in its profitability, Organon’s operating margin decreased by 16.2 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 7.5 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

Organon Trailing 12-Month Operating Margin (GAAP)

In Q4, Organon generated an operating margin profit margin of negative 9.8%, down 27.9 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Organon’s full-year EPS dropped 61.7%, or 12.8% annually, over the last four years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Organon’s low margin of safety could leave its stock price susceptible to large downswings.

Organon Trailing 12-Month EPS (Non-GAAP)

In Q4, Organon reported adjusted EPS of $0.63, down from $0.90 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Organon’s full-year EPS of $3.66 to grow 3%.

Key Takeaways from Organon’s Q4 Results

It was good to see Organon provide full-year revenue guidance that slightly beat analysts’ expectations. On the other hand, its EPS missed. Overall, this quarter could have been better. The stock traded down 4.3% to $7.36 immediately following the results.

So do we think Organon is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.

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