Organon AI Stock Analysis
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Organon (OGN) AI Stock Analysis
Organon
(NYSE:OGN)
The score is held back primarily by weakened TTM fundamentals (sharp revenue decline, compressed net margins, and a major drop in free cash flow) alongside elevated leverage and limited balance-sheet flexibility. Offsetting factors include a constructive technical setup with price above key moving averages and a valuation profile supported by an exceptionally high dividend yield.
Organon (OGN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.65B
- Dividend Yield
- 0.58%
- Average Volume (3M)
- 2.62M
- Price to Earnings (P/E)
- 17.6
- Beta (1Y)
- 1.07
- Revenue Growth
- -3.21%
- EPS Growth
- -58.19%
- Country
- US
- Employees
- 10,000
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Drug Manufacturers - General
Organon Business Overview & Revenue Model
Company Description
Organon & Co., a global pharmaceutical enterprise, is dedicated to developing and delivering a wide array of prescription therapies. Its women's health division features reproductive care products, encompassing birth control and fertility treatments,...
How the Company Makes Money
Organon primarily makes money by selling prescription pharmaceutical products to wholesalers, distributors, pharmacies, hospitals, clinics, and government/managed-care channels across global markets. Its revenue model is centered on three main produc...
Organon Earnings Call Summary
The call presents a mixed picture: several strong, tangible positives (stable full-year guidance, robust biosimilars growth—Hadlima +61% ex-FX—Vtama/Emgality momentum, >$200M cost savings, $960M free cash flow, $390M Jada divestiture and active deleveraging). Offsetting these are meaningful near-term commercial and margin headwinds (revenue down ~3% FY, Q4 -8% CC; Nexplanon channel and policy impacts with Q4 Nexplanon -20% ex-FX; respiratory pricing pressure; gross margin deterioration and a Q4 goodwill impairment), plus some governance/uncertainty from unresolved audit matters. Management expects flat 2026 results and continued focus on cost discipline and balance sheet repair, but several execution and market risks remain.
Q4-2025 Updates
Positive Updates
Negative Updates
Company Guidance
Organon guided to roughly $6.2 billion of revenue and about $1.9 billion of adjusted EBITDA for full-year 2026 (effectively flat with 2025), anticipating LOE of about $40 million, VBP impact near $30 million, price headwinds of roughly $75 million (≈1.2%), and volume growth of about $150 million (≈2.4%); management expects a modest FX tailwind to broadly offset the loss of Jada revenue (Jada was ~$74 million in 2025; divestiture proceeds ≈$390 million) and projects adjusted gross margin to be 75–100 basis points lower than 2025 (driven mainly by release of accumulated FX on inventory), with SG&A in the mid‑20% of sales range and R&D in the mid‑single‑digit percent range; below‑the‑line assumptions include interest expense of ≈$500 million, depreciation ≈$140 million, a diluted share count of ≈265 million and a non‑GAAP tax rate of 27.5–29.5%; free cash flow is expected to resemble 2024/2025 levels (2025 was $960 million) after ~ $100 million of 2026 manufacturing‑separation costs and higher CapEx/NWC, commercial milestones of ≈$170 million, and the company expects to reduce net leverage from ~4.3x toward below 4.0x by year‑end 2026.
Organon Financial Statement Overview
Summary
Financial performance is pressured by sharply weaker TTM revenue (down ~26%) and compressed net margins (~3%) versus the much stronger 2021–2024 profitability profile. Cash generation also deteriorated materially (TTM FCF ~ $97M, down ~81%), reducing flexibility to de-lever. Leverage remains the key risk with historically very high debt and thin/negative equity in prior years, despite a small improvement to positive equity in 2024–TTM.
Income Statement
46NeutralBalance Sheet
28NegativeCash Flow
40Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.10B | 6.22B | 6.40B | 6.26B | 6.17B | 6.30B |
| Gross Profit | 3.26B | 3.36B | 3.71B | 3.75B | 3.88B | 3.92B |
| EBITDA | 1.29B | 1.29B | 1.60B | 1.44B | 1.76B | 1.98B |
| Net Income | 213.00M | 187.00M | 864.00M | 1.02B | 917.00M | 1.35B |
Balance Sheet | ||||||
| Total Assets | 13.40B | 12.87B | 13.10B | 12.06B | 10.96B | 10.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 574.00M | 675.00M | 693.00M | 706.00M | 737.00M |
| Total Debt | 8.55B | 8.80B | 9.04B | 8.93B | 9.11B | 9.36B |
| Total Liabilities | 12.21B | 12.12B | 12.63B | 12.13B | 11.85B | 12.19B |
| Stockholders Equity | 1.19B | 752.00M | 472.00M | -70.00M | -892.00M | -1.51B |
Cash Flow | ||||||
| Free Cash Flow | 675.00M | 538.00M | 588.00M | 538.00M | 431.00M | 1.97B |
| Operating Cash Flow | 843.00M | 700.00M | 939.00M | 799.00M | 858.00M | 2.46B |
| Investing Cash Flow | 201.00M | -390.00M | -513.00M | -260.00M | -420.00M | -481.00M |
| Financing Cash Flow | -242.00M | -561.00M | -368.00M | -569.00M | -433.00M | -1.33B |
Organon Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OGN, the sentiment is Positive. The current price of 13.89 is above the 20-day moving average (MA) of 13.77, above the 50-day MA of 13.73, and above the 200-day MA of 11.64, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 68.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OGN.
Organon Risk Analysis
Organon disclosed 56 risk factors in its most recent earnings report. Organon reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksOrganon Peers Comparison
Overall Rating
SNY83Outperform
AMGN75Outperform
NVS72Outperform
GSK67Neutral
PFE66Neutral- OGN53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SNY | 83Outperform | $114.40B | 24.82 | 5.84% | 4.99% | 23.68% | -30.90% |
| AMGN | 75Outperform | $251.65B | 26.93 | 85.59% | 2.12% | 8.60% | 33.48% |
| NVS | 72Outperform | $295.79B | 30.66 | 24.24% | 2.96% | 1.64% | -28.72% |
| GSK | 67Neutral | $102.05B | 17.47 | 24.64% | 3.59% | 6.93% | -18.14% |
| PFE | 66Neutral | $167.35B | 41.67 | 4.60% | 5.84% | 1.34% | -58.96% |
| OGN | 53Neutral | $3.65B | 17.58 | 22.11% | 0.58% | -3.21% | -58.19% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| OGN | Organon & Co. | 13.89 | 6.34 | 84.05% | |
| AMGN | Amgen Inc | 468.11 | 141.18 | 43.18% | |
| GSK | GlaxoSmithKline | 50.60 | 4.08 | 8.78% | |
| NVS | Novartis AG | 160.32 | 30.94 | 23.92% | |
| PFE | Pfizer Inc | 29.45 | 5.28 | 21.84% | |
| SNY | Sanofi SA | 48.43 | -1.90 | -3.78% |
Organon Corporate Events
Organon Highlights Non-GAAP Metrics Amid Pending Merger
NeutralOn October 30, 2026, Organon & Co. filed its Form 10-Q and furnished supplemental non-GAAP financial metrics for the quarter and nine months ended September 30, 2026, continuing its historical disclosure practice despite suspending traditional earnin...
Organon Reports Q2 Results Amid Pending Sun Pharma Merger
NeutralOn July 31, 2026, Organon & Co. filed its Form 10-Q with the SEC, releasing financial results for the quarter ended June 30, 2026 while maintaining its suspension of traditional earnings press releases and conference calls because of its pending merg...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026