The earnings miss is secondary to the pending Sun Pharma merger at an undisclosed price. Traders should focus on the merger's regulatory and shareholder approval timeline, as the stock will trade on deal probability and spread rather than fundamental performance. Monitor for the filing of the merger proxy statement (DEFM14A) and any competing bids.
Price Chart
Executive Summary
Organon reported Q1 2026 revenue of $1.460B (-4% YoY as-reported, -9% ex-FX) and GAAP diluted EPS of $0.55, well below the $0.81 Street consensus. Adjusted (non-GAAP) diluted EPS was $0.71, also missing the $0.81 consensus. The core Women's Health franchise declined 16% as-reported (Nexplanon -21% ex-FX), and the company suspended guidance and earnings calls due to its pending all-cash merger with Sun Pharma, announced April 26, 2026. The merger context dominates the stock's near-term trajectory, making this earnings miss largely backward-looking.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $1.460B, down 4% as-reported and 9% ex-FX YoY
- GAAP diluted EPS $0.55 vs $0.81 consensus (miss); non-GAAP adjusted diluted EPS $0.71 also below consensus
- Women's Health revenue declined 16% as-reported; Nexplanon U.S. sales fell 28%
- Biosimilars grew 23% as-reported, partially offsetting declines
- Pending all-cash merger with Sun Pharma announced April 26, 2026; guidance and earnings calls suspended
- Cash and equivalents $1.12B, debt $8.57B as of March 31, 2026
- Quarterly dividend maintained at $0.02/share
Financial Impact
Revenue miss of ~$30M vs $1.49B consensus; EPS miss of $0.26 vs $0.81 consensus
Risk Factors
- Merger may not close due to regulatory hurdles or shareholder rejection
- Continued erosion in Women's Health and Established Brands revenue if deal fails
- High debt load ($8.57B) limits strategic alternatives if merger collapses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-052165 |
| Document: tm2613165d1_8k.htm | 0001104659-26-052165 |
| Document: 0001104659-26-052165-index-headers.html | 0001104659-26-052165 |
| Document: 0001104659-26-052165-index.html | 0001104659-26-052165 |
| Document: 0001104659-26-052165.txt | 0001104659-26-052165 |
| 8-K Data (Synthetic) | 0001104659-26-052165 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 18, 2026 10w ago | Institutional Cluster | $13.68 | awaiting T+60 | — | $13.74 (−0.48%) |
Jul 31, 2026 12w ago | 8-K | $13.55 $13.74 | ▼ −1.40% | ▲ +1.05% | $13.74 (−1.44%) |
Jul 17, 2026 14w ago | 8-K | $13.49 $13.77 | ▲ +2.08% | ▼ −2.76% | $13.74 (+1.89%) |
Jun 17, 2026 18w ago | DEFM14A | $13.42 $13.64 | ▲ +1.64% | ▼ −1.51% | $13.74 (+2.42%) |
Jun 11, 2026 19w ago | DEFA14A | $13.45 $13.78 | ▲ +2.45% | ▼ −1.94% | $13.74 (+2.19%) |
Jun 1, 2026 21w ago | PREM14A | $13.37 $13.75 | ▲ +2.84% | ▲ +1.87% | $13.74 (+2.84%) |
Apr 30, 2026 25w ago | DEFA14A | $13.25 $13.52 | ▲ +2.08% | ▼ −0.74% | $13.74 (+3.78%) |
Apr 30, 2026 25w ago | 8-K | $13.25 $13.52 | ▼ −2.08% | ▲ +0.74% | $13.74 (−3.78%) |
Apr 27, 2026 26w ago | DEFA14A | $13.32 $13.56 | ▲ +1.84% | ▼ −1.88% | $13.74 (+3.23%) |
Apr 27, 2026 26w ago | DEFA14A | $13.32 $13.56 | ▲ +1.84% | ▼ −1.88% | $13.74 (+3.23%) |
US Market Status
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