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Embecta Corporation (EMBC)
NASDAQ:EMBC
Earnings Data
Report Date
May 08, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.42Last Year’s EPS
0.7Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed mixed near-term operational challenges—notably U.S. pricing and volume headwinds, pen needle declines, China weakness and a meaningful drop in contract manufacturing—balanced against several strategic and financial positives: strong international growth (EMEA and Latin America), category growth in syringes and safety products, meaningful progress on brand transition and Medicare Part D access, tangible GLP-1 commercial traction with >30 partners and executed purchase orders, continued deleveraging (net leverage ~2.8x) and improved GAAP profitability metrics. Management reaffirmed guidance but signaled being nearer the low end due to U.S. pressures. Overall, the call emphasized execution on multi-year strategic initiatives and financial stability, while acknowledging near-term headwinds that temper upside.Company Guidance
Quarterly Revenue (Global) and Currency-Adjusted Change
Embecta reported Q1 FY2026 revenue of approximately $261 million, down 0.3% year-over-year on an as-reported basis and down 2.0% on an adjusted constant currency basis; management noted results were largely in line with expectations and driven by international strength offsetting U.S. headwinds.
International Revenue Growth
International revenue was approximately $130 million, up 8.4% on a reported basis and up 4.6% on an adjusted constant currency basis, driven by strong performance in EMEA and Latin America.
Product Category Strength (Syringes & Safety)
Syringe revenue grew ~5.3% year-over-year and safety product revenue grew ~7.3% year-over-year, with syringe and safety gains led by Latin America, EMEA and U.S. safety improvements.
Gross Profit and Margin Resilience
GAAP gross profit for Q1 was $161.7 million with a GAAP gross margin of 61.9% (prior year 60.0%); adjusted gross profit was $163.5 million with a 62.6% margin (slightly below prior-year adjusted margin of 62.7%). Management cited manufacturing cost improvements and lower manufacturing functional costs as offsets to pricing/mix headwinds.
Operating and Earnings Performance
GAAP operating income improved materially to $83.3 million (31.9% margin) versus $28.7 million (11% margin) last year. Adjusted net income rose to $42.3 million and adjusted diluted EPS increased to $0.71 from $0.65 year-over-year, helped by lower interest expense and tax planning.
Deleveraging and Cash Flow Focus
Generated approximately $17 million in free cash flow in Q1, repaid ~$38 million of debt during the quarter, and reduced last twelve months net leverage to ~2.8x (well below the covenant requirement of <4.75x). Management reiterated a 2026 target to repay ~ $150 million in debt and generate $180–200 million in free cash flow (expect closer to low end).
Brand Transition and Payer Access
More than 95% of U.S. and Canadian SKUs have been transitioned to the Embecta brand. The company added an exclusive Medicare Part D payer contract (effective Jan 2026) and renewed advantage formulary access with the top three Medicare Part D payers, strengthening access in an important senior-patient channel.
GLP-1 Strategy Progress and Commercial Readiness
Actively collaborating with >30 pharmaceutical partners on co-packaging pen needles for generic GLP-1 therapies; over one-third of partners have selected Embecta (contracts or negotiations), several have placed purchase orders, and pen needles are included in multiple partner-managed regulatory submissions. Management reiterated the previously quantified $100M+ GLP-1 opportunity (by 2033) and expects initial generic launches in several markets beginning in 2026.
Portfolio Expansion and Manufacturing Readiness
Market-appropriate pen needles and syringes moved from concept to execution: product designs finalized, production equipment installed, manufacturing validation underway, and progressing toward regulatory submissions and commercial launches without significant incremental capital expected for anticipated GLP-1-related volume.
EMBC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EMBC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $11.35 | $10.47 | -7.75% |
Nov 25, 2025 | $14.45 | $13.40 | -7.27% |
Aug 08, 2025 | $10.12 | $12.00 | +18.58% |
May 09, 2025 | $12.82 | $11.54 | -9.98% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Embecta Corporation (EMBC) report earnings?
Embecta Corporation (EMBC) is schdueled to report earning on May 08, 2026, Before Open (Confirmed).
What is Embecta Corporation (EMBC) earnings time?
Embecta Corporation (EMBC) earnings time is at May 08, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EMBC EPS forecast?
EMBC EPS forecast for the fiscal quarter 2026 (Q2) is 0.42.