Organon Revenue Falls to $1.574 Billion Despite Net Income Rising to $164 Million
Key Facts
Organon reported revenue of $1.574 billion and net income of $164 million for the three months ended September 30, 2026, with basic earnings per share of $0.62, according to its quarterly filing with the U.S. Securities and Exchange Commission. The year-over-year comparison shows revenue declined and net income rose, while diluted earnings per share fell. Revenue was $1.602 billion in the third quarter of 2025, compared with $1.574 billion in the current quarter. Net income rose from $160 million to $164 million, while diluted earnings per share fell from $0.61 to $0.60. The company said on October 19 that it would provide its quarterly results through its periodic filing, with quarterly earnings conferences suspended while it awaits the Sun Pharma acquisition.
Revenue also declined from the previous quarter: Organon reported revenue of $1.558 billion in the second quarter of 2026, compared with $1.594 billion in the second quarter of 2025. For the first nine months of the year, revenue was $4.592 billion, compared with $4.709 billion in the corresponding period of 2025. But net income for the nine months rose to $418 million from $392 million. In the third quarter, the company said favorable net pricing and foreign exchange movements supported gross profit, partly offset by an unfavorable impact from volume and product mix. For the nine months, gross profit declined 3% from the same period a year earlier, driven by the effects of volume, pricing, product mix and foreign exchange.
By product, global Nexplanon sales fell 10% in the third quarter compared with the same period in 2025. Organon attributed the decline mainly to weaker physician demand in the U.S. following approval of a five-year duration of use. The company also cited delays in implant replacement and uncertainty related to federal funding. By contrast, quarterly Hadlima sales rose 35%, driven by strong demand in the U.S. and Puerto Rico. Ontruzant sales fell 77%, which the company said was due to lower tender volume from Brazil's Ministry of Health. These movements show divergent product performance during the quarter, with Hadlima growing while Nexplanon and Ontruzant declined.
Organon said supply constraints affected consolidated revenue by an estimated less than 2% in the quarter ended September 30. Factors included disruption at a contract manufacturer, temporary operational constraints, labor disruptions at a logistics provider, and geopolitical disruptions. The company said supply chain recovery continued. On expenses, selling, general and administrative expenses rose 1% year over year, as costs related to the Sun Pharma deal increased, partly offset by lower employee costs and spending under savings and restructuring initiatives. Research and development expenses also fell 1%, which the company attributed mainly to lower employee-related costs as part of restructuring and reduced clinical study activity.
Cash and cash equivalents totaled $1.46 billion on September 30, 2026. The company generated operating cash flow of $702 million in the first nine months, compared with $559 million in the corresponding period of 2025. The results come as Organon awaits completion of its acquisition agreement with Sun Pharma, signed on April 26, 2026, under which Sun Pharma would buy all of its outstanding shares for $14 per share in cash. Shareholders approved the deal on July 23, and the company expects it to close by early 2027, subject to closing conditions and required regulatory approvals. On October 30, the company announced a quarterly cash dividend of $0.02 per share, payable on December 10 to shareholders of record at the close of November 9. OGN shares closed at $13.84 on October 30, according to EL7 data.