Revenue: As of FY2026 Q1, the actual value is USD 1.46 B, missing the estimate of USD 1.488 B.EPS: As of FY2026 Q1, the actual value is USD 0.55.EBIT: As of FY2026 Q1, the actual value is USD 346 M.<h4>Overall Financial Performance</h4>Organon &amp; Co.’s worldwide sales for the three months ended March 31, 2026, were $1.46 billion, a 4% decrease compared to $1.513 billion in the same period of 2025. Excluding foreign exchange impacts, sales decreased by 9%. Cost of sales increased by 1% to $677 million in 2026 from $672 million in 2025. Gross profit decreased by 7% to $783 million in 2026 from $841 million in 2025.Selling, general and administrative expenses increased by 1% to $424 million in 2026 from $420 million in 2025. Research and development expenses decreased by 3% to $93 million in 2026 from $96 million in 2025. Acquired in-process research and development and milestones were $0 in 2026, compared to $6 million in 2025. Restructuring costs decreased significantly to $31 million in 2026 from $86 million in 2025. Interest expense decreased by 10% to $111 million in 2026 from $124 million in 2025. Exchange gains (losses) shifted from a gain of - $4 million in 2025 to a loss of $7 million in 2026. Other (income) expense, net, was - $96 million in 2026, compared to $12 million in 2025. The effective income tax rate was 31.4% in 2026, up from 13.4% in 2025. Net income increased to $146 million in 2026 from $87 million in 2025.<h4>Segment Revenue Breakdown</h4><h5>Women’s Health</h5><ul><li>Nexplanon/Implanon NXT: Worldwide sales declined 19% to $201 million in 2026 from $248 million in 2025.</li><li>NuvaRing: Worldwide sales increased 10% to $24 million in 2026 from $22 million in 2025.</li><li>Marvelon/Mercilon: Worldwide sales decreased 34% to $26 million in 2026 from $39 million in 2025.</li><li>Follistim AQ: Worldwide sales declined 12% to $61 million in 2026 from $69 million in 2025.</li><li>Jada: Worldwide sales declined 66% to $5 million in 2026 from $15 million in 2025, following its divestiture.</li></ul><h5>General Medicines - Biosimilars</h5><ul><li>Renflexis: Sales increased 1% to $57 million in 2026 from $57 million in 2025.</li><li>Hadlima: Sales increased 44% to $67 million in 2026 from $47 million in 2025.</li><li>Ontruzant: Sales declined 71% to $5 million in 2026 from $18 million in 2025.</li><li>Brenzys: Sales increased 39% to $20 million in 2026 from $14 million in 2025.</li></ul><h5>General Medicines - Established Brands</h5><ul><li>Cardiovascular (Atozet, Zetia/Vytorin, Cozaar/Hyzaar): Atozet sales increased 11% to $85 million in 2026 from $77 million in 2025. Combined Zetia/Vytorin sales increased 1% to $108 million in 2026 from $107 million in 2025. Combined Cozaar/Hyzaar sales increased 4% to $57 million in 2026 from $55 million in 2025.</li><li>Respiratory (Singulair, Nasonex, Dulera): Singulair sales declined 46% to $40 million in 2026 from $74 million in 2025. Nasonex sales declined 9% to $65 million in 2026 from $72 million in 2025. Dulera sales declined 20% to $35 million in 2026 from $43 million in 2025.</li><li>Non-Opioid Pain, Bone and Dermatology (Arcoxia, Vtama): Arcoxia sales declined 5% to $59 million in 2026 from $62 million in 2025. Vtama sales increased 5% to $25 million in 2026 from $24 million in 2025.</li><li>Other (Emgality): Emgality sales increased 69% to $54 million in 2026 from $32 million in 2025.</li></ul><h4>Geographic Revenue Breakdown</h4><ul><li>Europe and Canada: Revenues were $412 million in 2026, up from $376 million in 2025.</li><li>United States: Revenues were $358 million in 2026, down from $412 million in 2025.</li><li>Asia Pacific and Japan: Revenues were $226 million in 2026, down from $251 million in 2025.</li><li>China: Revenues were $194 million in 2026, down from $204 million in 2025.</li><li>Latin America, Middle East, Russia, and Africa: Revenues were $247 million in 2026, up from $240 million in 2025.</li></ul><h4>Cash Flow and Liquidity</h4>Cash and cash equivalents were $1.12 billion as of March 31, 2026, compared to $574 million as of December 31, 2025. Net cash provided by operating activities was $225 million for the three months ended March 31, 2026, compared to $75 million for the same period in 2025. Net cash provided by investing activities was $386 million in 2026, compared to - $172 million used in investing activities in 2025. Net cash used in financing activities was - $38 million in 2026, compared to - $75 million in 2025. Working capital was $2.43 billion as of March 31, 2026, compared to $1.96 billion as of December 31, 2025. Total principal long-term debt and short-term borrowings were $8.569 billion as of March 31, 2026. The weighted-average interest rate on total borrowings was 4.9% as of March 31, 2026.<h4>Unique Metrics and Commitments</h4>Loss of exclusivity (LOE) negatively impacted sales by approximately - $4 million for the three months ended March 31, 2026. Volume-based procurement (VBP) in China negatively impacted sales by approximately - $2 million during the same period. The legal defense reserve was $9 million as of March 31, 2026. Organon &amp; Co. has one remaining potential future regulatory milestone payment of $25 million with Samsung Bioepis Co., Ltd. Receivables from Samsung were $1 million and payables were $126 million as of March 31, 2026. Due from Merck was $158 million and due to Merck was $350 million as of March 31, 2026. Sales from manufacturing and supply agreements with Merck were $13 million, with cost of sales at $11 million for the three months ended March 31, 2026. Unrecognized stock-based compensation costs were $179 million, to be recognized over a weighted average vesting period of 2.37 years.<h4>Outlook and Strategy</h4>Organon &amp; Co. expects a further decline in Follistim AQ sales due to price reductions and increased competition, while VBP is anticipated to continue negatively impacting the general medicines portfolio. The company plans to launch Vtama in certain international markets from 2026 onwards and will optimize its manufacturing network by exiting supply agreements with Merck through 2031 to gain efficiencies. Organon &amp; Co. anticipates generating positive cash flow from operations and believes its financing arrangements will provide adequate resources for future needs, including debt repayment, strategic development, and dividends.

Organon | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 1.46 B