Pharmaceutical company Organon (NYSE:OGN) will be reporting earnings tomorrow before market open. Here’s what investors should know.
Organon beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.59 billion, flat year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly.
Is Organon a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Organon’s revenue to decline 7.3% year on year to $1.50 billion, a reversal from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Organon has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Organon’s peers in the branded pharmaceuticals segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bristol-Myers Squibb’s revenues decreased 5.6% year on year, beating analysts’ expectations by 3.9%, and Merck reported a revenue decline of 1.6%, topping estimates by 1.6%. Bristol-Myers Squibb traded down 1.3% following the results while Merck was up 5.1%.
Read our full analysis of Bristol-Myers Squibb’s results here and Merck’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the branded pharmaceuticals stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Organon is down 6.7% during the same time and is heading into earnings with an average analyst price target of $18.67 (compared to the current share price of $13.19).
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