Revenue growth has trended into negative territory with a 3.5% year-over-year decline in 2026Q1, while gross margins have steadily eroded from 59.0% in 2024Q1 to 53.6% in 2026Q1.
| Sales/Revenue | 6.16B | 6.22B | 6.4B | 6.26B | 6.17B | 6.3B | 6.53B | 7.78B | 9.78B |
| Revenue Growth % | -2.08% | -2.92% | 2.24% | 1.44% | -2.06% | -3.49% | -16.01% | -20.46% | - |
| Cost of Goods Sold | 2.89B | 2.85B | 2.69B | 2.52B | 2.29B | 2.38B | 2.12B | 2.27B | 4.69B |
| COGS % of Revenue | - | 45.91% | 41.98% | 40.16% | 37.16% | 37.79% | 32.44% | 29.24% | 48% |
| Gross Profit | 3.27B | 3.36B | 3.71B | 3.75B | 3.88B | 3.92B | 4.41B | 5.5B | 5.08B |
| Gross Margin % | 53.11% | 54.09% | 58.02% | 59.84% | 62.84% | 62.21% | 67.56% | 70.76% | 52% |
| Gross Profit Growth % | - | -9.5% | -0.88% | -3.4% | -1.07% | -11.13% | -19.81% | 8.24% | - |
| Operating Expenses | 2.09B | 2.09B | 2.23B | 2.42B | 2.17B | 2.01B | 1.57B | 1.66B | 2.38B |
| OpEx % of Revenue | - | 33.57% | 34.81% | 38.66% | 35.23% | 31.84% | 23.97% | 21.38% | 24.32% |
| Selling, General & Admin | 1.73B | 1.71B | 1.76B | 1.89B | 1.7B | 1.67B | 1.36B | 1.44B | 2.01B |
| SG&A % of Revenue | - | 27.53% | 27.49% | 30.23% | 27.6% | 26.46% | 20.76% | 18.55% | 20.59% |
| Research & Development | 363M | 366M | 469M | 528M | 471M | 443M | 210M | 220M | 365M |
| R&D % of Revenue | - | 5.89% | 7.32% | 8.43% | 7.63% | 7.03% | 3.21% | 2.83% | 3.73% |
| Other Operating Expenses | 0 | 10M | 0 | 0 | 0 | -104M | 0 | 0 | 0 |
| Operating Income | 1.19B | 1.28B | 1.49B | 1.33B | 1.71B | 1.92B | 2.85B | 3.85B | 2.71B |
| Operating Margin % | 19.23% | 20.67% | 23.21% | 21.19% | 27.62% | 30.38% | 43.59% | 49.47% | 27.68% |
| Operating Income Growth % | - | -13.53% | 11.98% | -22.17% | -10.97% | -32.74% | -25.99% | 42.17% | - |
| EBITDA | 1.54B | 1.64B | 1.76B | 1.56B | 1.92B | 2.11B | 2.99B | 4.2B | 4.38B |
| EBITDA Margin % | 24.99% | 26.36% | 27.53% | 24.96% | 31.05% | 33.47% | 45.76% | 54.02% | 44.79% |
| EBITDA Growth % | -9.84% | -7.07% | 12.8% | -18.47% | -9.15% | -29.41% | -28.85% | -4.06% | - |
| D&A (Non-Cash Add-back) | 355M | 353.33M | 277M | 236M | 212M | 195M | 142M | 354M | 1.67B |
| EBIT | 970M | 929M | 1.33B | 1.2B | 1.54B | 1.79B | 2.85B | 3.56B | 2.71B |
| Net Interest Income | -492M | -504M | -520M | -527M | -422M | -258M | -6M | 13M | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19M | 0 |
| Interest Expense | 492M | 504M | 520M | 527M | 422M | 258M | 6M | 6M | 0 |
| Other Income/Expense | -648M | -860M | -679M | -654M | -583M | -386M | -95M | -144M | 23M |
| Pretax Income | 537M | 425M | 807M | 673M | 1.12B | 1.53B | 2.75B | 3.7B | 2.73B |
| Pretax Margin % | 8.71% | 6.84% | 12.6% | 10.75% | 18.17% | 24.25% | 42.13% | 47.52% | 27.91% |
| Income Tax | 291M | 238M | -57M | -350M | 205M | 178M | 496M | 390M | 576M |
| Effective Tax Rate % | 54.19% | 56% | -7.06% | -52.01% | 18.27% | 11.64% | 18.02% | 10.55% | 21.11% |
| Net Income | 246M | 187M | 864M | 1.02B | 917M | 1.35B | 2.16B | 3.22B | 2.15B |
| Net Margin % | 3.99% | 3.01% | 13.49% | 16.33% | 14.85% | 21.43% | 33.07% | 41.38% | 22.02% |
| Net Income Growth % | -67.2% | -78.36% | -15.54% | 11.56% | -32.12% | -37.45% | -32.88% | 49.47% | - |
| Net Income (Continuing) | 246M | 187M | 864M | 1.02B | 917M | 1.35B | 2.26B | 3.31B | 2.15B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -96M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.94 | 0.72 | 3.33 | 3.99 | 3.59 | 5.33 | 8.52 | 12.71 | 8.51 |
| EPS Growth % | -67.71% | -78.38% | -16.54% | 11.14% | -32.65% | -37.44% | -32.97% | 49.35% | - |
| EPS (Basic) | - | 0.72 | 3.36 | 4.01 | 3.61 | 5.33 | 8.52 | 12.71 | 8.51 |
| Diluted Shares Outstanding | 262.9M | 260.76M | 259.15M | 256.27M | 255.17M | 253.55M | 253.52M | 253.13M | 253.13M |
| Basic Shares Outstanding | 260.37M | 259.5M | 257.05M | 255.24M | 254.08M | 253.55M | 253.52M | 253.13M | 253.13M |
| Dividend Payout Ratio | - | 47.06% | 34.38% | 28.74% | 31.62% | 10.73% | - | - | - |
High Debt Service Burden
According to the provided quarterly financial data, Organon's revenue growth has trended into negative territory, with the most recent 2026Q1 period showing a 3.5% year-over-year decline, signaling that the company's legacy portfolio is struggling to offset competitive pressures and volume-based procurement headwinds in international markets.
The consistent inability to achieve positive top-line growth suggests that the company's core Established Brands segment is facing structural erosion that the Women's Health and Biosimilars pillars have yet to fully replace. Investors should monitor whether this deceleration is a temporary byproduct of portfolio optimization or a permanent shift in the company's competitive positioning.
As reported in the income statement history, Organon's gross margin has steadily eroded from a peak of 59.0% in 2024Q1 to 53.6% in 2026Q1, reflecting the increasing difficulty of maintaining pricing power amidst a shifting mix toward lower-margin biosimilars and legacy product price erosion.
This downward trend in gross profitability appears to indicate that the company's manufacturing cost base is not scaling efficiently with its revenue profile. The persistent margin contraction suggests that the competitive landscape for its off-patent portfolio is becoming increasingly commoditized, limiting the company's ability to defend its historical profitability levels.
Based on the reported figures, operating income has failed to scale with gross profit, as evidenced by the operating margin dropping from 25.5% in 2024Q1 to 18.2% in 2026Q1, indicating that SG&A expenses remain stubbornly high relative to the company's declining revenue base.
The lack of operating leverage suggests that the company's fixed cost structure is rigid, preventing management from effectively rightsizing the organization in response to top-line weakness. This inefficiency may imply that the current commercial footprint is oversized for the company's actual revenue-generating capacity, warranting further investigation into potential future restructuring efforts.
Financial statements reveal significant volatility in net income, highlighted by a sharp swing from a $205 million loss in 2025Q4 to a $146 million profit in 2026Q1, which suggests that non-operating items and one-time charges are heavily distorting the company's reported bottom-line results.
The erratic nature of net income, exacerbated by fluctuating tax rates and potential separation-related costs, makes it difficult to assess the true cash-generating capability of the business. Investors should look past headline EPS figures and focus on adjusted metrics to determine if the core operations are actually producing sustainable value for shareholders.
Quick answers to the most common questions about buying OGN stock.
For fiscal year 2025, Organon & Co. (OGN) reported total revenue of $6.22B. This represents a 36.4% decline compared to $9.78B in 2018.
Organon & Co. (OGN) is profitable, generating $187.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.0%.
Organon & Co. (OGN) reported an operating income of $1.28B, resulting in an operating profit margin of 20.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Organon & Co. (OGN) generated $3.36B in gross profit for the year, representing a gross profit margin of 54.1%. This demonstrates the company's core pricing power and production efficiency.