Embecta (NASDAQ:EMBC) Releases Earnings Results, Beats Expectations By $0.04 EPS

Embecta (NASDAQ:EMBC) released its earnings results on Thursday. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.67 by $0.04, Briefing.com reports. Embecta had a negative return on equity of 24.62% and a net margin of 8.83%.The business had revenue of $261.20 million for the quarter, compared to analysts’ expectations of $258.07 million. During the same quarter in the prior year, the firm earned $0.65 earnings per share. The firm’s revenue was down .3% on a year-over-year basis. Embecta updated its FY 2026 guidance to 2.800-3.00 EPS.

Here are the key takeaways from Embecta’s conference call:

• Embecta reported Q1 revenue of approximately $261M (‑0.3% as‑reported; ‑2% adjusted constant currency) with a U.S. decline of ~7.6% (adjusted CC); management reaffirmed FY26 guidance but expects to be nearer the lower end due to incremental U.S. pricing and channel headwinds.
• Management highlighted tangible progress on the GLP‑1 opportunity—collaborations with 30+ pharma partners (over one‑third have selected Embecta), several contracts and purchase orders, and inclusion in partner regulatory submissions—expecting initial generic launches in select markets in 2026 and to support volume without significant incremental capex.
• The company has completed branding in North America with >95% of U.S. and Canadian revenue transitioned to the Embecta brand and is rolling the transition globally, targeting substantial completion by end of calendar 2026 to strengthen market identity and access.
• Financially, Q1 GAAP net income was $44.1M ($0.74/share) and adjusted EPS was $0.71; Embecta generated ~$17M free cash flow, repaid ~$38M of debt, reduced last‑12‑month net leverage to ~2.8x, and plans ~ $150M further debt paydown while targeting $180–200M FCF for FY26 (closer to the low end).
• Product expansion is progressing—market‑appropriate pen needles and syringes have completed design and are in manufacturing validation with regulatory submissions and launches planned, while a pen injector program is in early R&D and timing/scale remain uncertain.

Embecta Stock Down 6.8%

Embecta stock traded down $0.77 on Thursday, hitting $10.58. The company’s stock had a trading volume of 886,021 shares, compared to its average volume of 602,929. Embecta has a one year low of $9.20 and a one year high of $18.12. The firm has a market cap of $626.44 million, a P/E ratio of 6.43 and a beta of 1.11. The company has a fifty day moving average price of $11.84 and a 200-day moving average price of $12.97.

Embecta Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Friday, December 5th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 5.7%. The ex-dividend date was Friday, December 5th. Embecta’s dividend payout ratio (DPR) is 36.81%.

Wall Street Analyst Weigh In

EMBC has been the subject of several research reports. BTIG Research reiterated a “buy” rating on shares of Embecta in a research report on Tuesday, November 25th. Wall Street Zen upgraded Embecta from a “buy” rating to a “strong-buy” rating in a report on Saturday, December 27th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Embecta in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $18.50.

Institutional Investors Weigh In On Embecta

Several institutional investors and hedge funds have recently added to or reduced their stakes in EMBC. Royal Bank of Canada raised its stake in shares of Embecta by 38.3% in the first quarter. Royal Bank of Canada now owns 18,201 shares of the company’s stock worth $232,000 after purchasing an additional 5,036 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Embecta by 3.7% in the first quarter. AQR Capital Management LLC now owns 225,641 shares of the company’s stock valued at $2,738,000 after purchasing an additional 8,109 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Embecta by 2.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 49,323 shares of the company’s stock worth $629,000 after acquiring an additional 1,159 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Embecta by 4.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 172,173 shares of the company’s stock worth $2,195,000 after acquiring an additional 7,894 shares in the last quarter. Finally, Jane Street Group LLC increased its stake in Embecta by 224.0% in the first quarter. Jane Street Group LLC now owns 132,688 shares of the company’s stock valued at $1,692,000 after purchasing an additional 91,729 shares during the last quarter. Hedge funds and other institutional investors own 93.83% of the company’s stock.

About Embecta

Embecta Corp (NASDAQ: EMBC) is a pure-play diabetes care company that was spun off from Becton, Dickinson and Company on July 1, 2021. Headquartered in Franklin Lakes, New Jersey, Embecta focuses exclusively on the development, manufacturing and commercialization of products that enable insulin delivery and blood glucose monitoring for people with diabetes.

The company’s product portfolio includes insulin infusion sets, durable and patch pumps, pen needles, infusion tubing, blood glucose test strips, lancets and lancing devices.