Revenue growth has trended downward, culminating in a 14.4% year-over-year decline in 2026Q2, while gross margins have exhibited significant volatility, falling to 51.4% from a 69.0% peak in 2024Q3.
| Sales/Revenue | 1.04B | 1.08B | 1.12B | 1.12B | 1.13B | 1.17B | 1.09B | 1.11B |
| Revenue Growth % | -3.43% | -3.8% | 0.21% | -0.77% | -3.05% | 7.32% | -2.12% | - |
| Cost of Goods Sold | 402M | 400.9M | 394.2M | 370.9M | 354.6M | 365M | 323M | 323M |
| COGS % of Revenue | - | 37.11% | 35.1% | 33.09% | 31.39% | 31.33% | 29.76% | 29.13% |
| Gross Profit | 640.5M | 679.5M | 728.9M | 749.9M | 774.9M | 800M | 763M | 786M |
| Gross Margin % | 61.44% | 62.89% | 64.9% | 66.91% | 68.61% | 68.67% | 70.29% | 70.87% |
| Gross Profit Growth % | - | -6.78% | -2.8% | -3.23% | -3.14% | 4.85% | -2.93% | - |
| Operating Expenses | 351.7M | 350.2M | 554.7M | 520.3M | 396.8M | 308M | 276M | 284M |
| OpEx % of Revenue | - | 32.41% | 49.39% | 46.42% | 35.13% | 26.44% | 25.43% | 25.61% |
| Selling, General & Admin | 325.1M | 331.4M | 365.1M | 341.3M | 294.8M | 240M | 215M | 222M |
| SG&A % of Revenue | - | 30.67% | 32.51% | 30.45% | 26.1% | 20.6% | 19.81% | 20.02% |
| Research & Development | 18.4M | 21.5M | 78.8M | 85.2M | 65M | 63M | 61M | 62M |
| R&D % of Revenue | - | 1.99% | 7.02% | 7.6% | 5.75% | 5.41% | 5.62% | 5.59% |
| Other Operating Expenses | 2.4M | -2.7M | 110.8M | 93.8M | 37M | 5M | 0 | 0 |
| Operating Income | 288.8M | 329.3M | 174.2M | 229.6M | 378.1M | 492M | 487M | 502M |
| Operating Margin % | 27.7% | 30.48% | 15.51% | 20.49% | 33.48% | 42.23% | 44.86% | 45.27% |
| Operating Income Growth % | - | 89.04% | -24.13% | -39.28% | -23.15% | 1.03% | -2.99% | - |
| EBITDA | 316.3M | 380.4M | 216.7M | 262.3M | 409.8M | 530M | 525M | 538M |
| EBITDA Margin % | 30.34% | 35.21% | 19.29% | 23.4% | 36.28% | 45.49% | 48.36% | 48.51% |
| EBITDA Growth % | 8.47% | 75.54% | -17.38% | -35.99% | -22.68% | 0.95% | -2.42% | - |
| D&A (Non-Cash Add-back) | 27.5M | 51.1M | 42.5M | 32.7M | 31.7M | 38M | 38M | 36M |
| EBIT | 236.9M | 243.6M | 156.5M | 212.7M | 302.8M | 495M | 486M | 500M |
| Net Interest Income | -76.8M | -107.3M | -112.3M | -107M | -46.2M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 6M | 107.3M | 112.3M | 107M | 46.2M | 0 | 0 | 0 |
| Other Income/Expense | -107.5M | -193M | -130M | -123.9M | -121.5M | 3M | -1M | -2M |
| Pretax Income | 169.6M | 136.3M | 44.2M | 105.7M | 256.6M | 495M | 485.8M | 500M |
| Pretax Margin % | 16.27% | 12.62% | 3.94% | 9.43% | 22.72% | 42.49% | 44.75% | 45.09% |
| Income Tax | 57.7M | 40.9M | -34.1M | 35.3M | 33M | 80M | 58.2M | 68M |
| Effective Tax Rate % | 34.02% | 30.01% | -77.15% | 33.4% | 12.86% | 16.16% | 11.98% | 13.6% |
| Net Income | 111.9M | 95.4M | 78.3M | 70.4M | 223.6M | 414.8M | 427.6M | 432M |
| Net Margin % | 10.73% | 8.83% | 6.97% | 6.28% | 19.8% | 35.61% | 39.39% | 38.95% |
| Net Income Growth % | 114.78% | 21.84% | 11.22% | -68.52% | -46.09% | -2.99% | -1.02% | - |
| Net Income (Continuing) | 116M | 95.4M | 78.3M | 70.4M | 223.6M | 415M | 427.6M | 432M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.90 | 1.62 | 1.34 | 1.22 | 3.89 | 7.31 | 7.50 | 7.58 |
| EPS Growth % | 37.37% | 20.9% | 9.84% | -68.64% | -46.79% | -2.53% | -1.06% | - |
| EPS (Basic) | - | 1.64 | 1.36 | 1.23 | 3.92 | 7.31 | 7.50 | 7.58 |
| Diluted Shares Outstanding | 58.91M | 58.91M | 58.33M | 57.76M | 57.06M | 56.8M | 57M | 57M |
| Basic Shares Outstanding | 58.31M | 58.31M | 58.43M | 57.24M | 57.06M | 56.8M | 57M | 57M |
| Dividend Payout Ratio | - | 36.69% | 44.06% | 48.86% | 3.85% | - | - | - |
Revenue erosion and margin volatility
As reported in recent financial statements, Embecta's revenue growth has trended downward, culminating in a 14.4% year-over-year decline in 2026Q2 to $221.8M, which suggests that the core insulin delivery business is facing significant volume or pricing pressures in its primary markets.
The consistent revenue volatility indicates that the company's reliance on legacy insulin delivery products may be increasingly susceptible to market shifts. Investors should monitor whether this contraction reflects structural demand erosion or temporary inventory adjustments within the pharmacy distribution channel.
Based on the provided income statement data, Embecta's gross margin has fluctuated significantly, dropping to 51.4% in 2026Q2 from a peak of 69.0% in 2024Q3, highlighting the sensitivity of the company's manufacturing cost structure to operational changes and potential input price spikes.
The inability to maintain a stable gross margin suggests that the company's high fixed-cost manufacturing base is struggling to absorb volume declines. This variability warrants further investigation into whether the company possesses the pricing power necessary to offset rising production costs in a competitive landscape.
According to the company's quarterly filings, operating margins have swung wildly from 37.2% in 2026Q1 to 9.6% in 2026Q2, indicating that the firm has yet to achieve the consistent operating leverage required to scale its profitability independently of its former parent company.
The erratic nature of operating income suggests that SG&A expenses are not scaling efficiently with revenue fluctuations. This lack of operational discipline may indicate that the company is still burdened by the transition costs and infrastructure requirements of operating as a standalone entity.
As evidenced by the income statement, SG&A expenses have remained stubbornly high relative to revenue, with 2026Q2 SG&A of $76.2M representing a significant portion of total sales, which appears to limit the company's ability to generate consistent bottom-line profitability during periods of revenue decline.
The persistence of high administrative costs suggests that the company has not yet successfully optimized its cost structure post-spin. Investors should monitor whether management can implement meaningful cost-reduction initiatives to protect margins as the core business faces ongoing top-line pressure.
Based on the reported figures, the company's net income turned negative in 2026Q2, which may indicate that the core business model is facing existential challenges that could impair long-term value creation despite the company's historical dominance in the insulin delivery market.
Short-term volatility in net income, combined with a declining revenue trajectory, suggests that the market's skepticism regarding the impact of GLP-1 adoption may be grounded in fundamental reality. The transition to a patch pump model remains unproven and carries significant execution risk that could further strain the balance sheet.
Quick answers to the most common questions about buying EMBC stock.
For fiscal year 2025, Embecta Corp. (EMBC) reported total revenue of $1.08B. This represents a 2.6% decline compared to $1.11B in 2019.
Embecta Corp. (EMBC) is profitable, generating $95.4M in net income for the fiscal year ending 2025 with a net profit margin of 8.8%.
Embecta Corp. (EMBC) reported an operating income of $329.3M, resulting in an operating profit margin of 30.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Embecta Corp. (EMBC) generated $679.5M in gross profit for the year, representing a gross profit margin of 62.9%. This demonstrates the company's core pricing power and production efficiency.