Organon (OGN) AI Stock Analysis

Organon

(BMV:OGN)

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Positive Factors

Diversified healthcare portfolioThe combination of women’s health, established medicines, and biosimilars gives Organon multiple product categories and geographic revenue channels. This diversification can reduce reliance on any single therapy, support recurring demand from mature products, and provide a broader platform for commercial partnerships.

Negative Factors

Sharp revenue declineA revenue decline of this magnitude weakens the company’s earnings base and reduces operating leverage across its commercial platform. If the contraction persists, Organon may have less capacity to fund new products, offset mature-brand erosion, and support debt reduction through internally generated resources.

Organon (OGN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 3.63B
Dividend Yield: 0.52%
Average Volume (3M): 28
Price to Earnings (P/E): 17.5
Beta (1Y): -0.63
Revenue Growth: -13.20%
EPS Growth: -64.60%
Country: Mexico
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,...

Organon Earnings Call Summary

Earnings Call Date:Feb 11, 2026(Q4-2025)|% Change Since:92.88%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentNeutral

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.

Positive Updates

Annual Revenue and Adjusted EBITDA (2025) and 2026 Guidance

Organon delivered $6.2 billion of revenue and $1.9 billion of adjusted EBITDA in 2025 (revenue down ~3% year-over-year reported and ex-FX). Management guides to roughly flat results for 2026 (about $6.2B revenue and ~$1.9B adjusted EBITDA), signaling stability at current run-rate.

Negative Updates

Topline and Quarterly Weakness

Q4 revenue was $1.57 billion, down ~8% at constant currency. Full-year revenue declined ~3% year-over-year. Company faced LOE-related volume loss (~$200M full year) and notable pricing headwinds (~$180M negative impact in 2025, ~2.8%).

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 Risk Analysis

Organon disclosed 56 risk factors in its most recent earnings report. Organon reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Risks Relating to Common StockQ2, 2026

2.Risk factorsQ2, 2026

3.Risks Relating to Our Financial ConditionQ2, 2026

Organon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

MX:OGN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMGN	75Outperform	$251.94B	28.73	89.32%	2.13%	9.89%	31.69%
PFE	74Outperform	$173.95B	40.33	4.89%	5.64%	-0.21%	-59.71%
NVS	72Outperform	$296.91B	31.19	24.24%	2.95%	1.64%	-28.72%
SNY	71Outperform	$106.82B	24.39	5.52%	5.46%	23.68%	-30.90%
GSK	67Neutral	$99.56B	17.18	24.64%	3.67%	6.93%	-18.14%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

MX:OGN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:OGN	Organon & Co.	255.00	129.78	103.64%
AMGN	Amgen Inc	466.01	177.71	61.64%
GSK	GlaxoSmithKline	49.51	4.72	10.55%
NVS	Novartis AG	160.79	39.31	32.36%
PFE	Pfizer Inc	30.52	7.48	32.45%
SNY	Sanofi SA	44.34	-3.79	-7.87%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Organon AI Stock Analysis