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

Embecta (NASDAQ:EMBC) released its quarterly earnings data on Thursday. The company reported $0.71 EPS for the quarter, beating analysts’ consensus estimates of $0.67 by $0.04, Briefing.com reports. The business had revenue of $261.20 million for the quarter, compared to the consensus estimate of $258.07 million. Embecta had a negative return on equity of 24.62% and a net margin of 8.83%.The business’s revenue for the quarter was down .3% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.65 EPS. 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 Performance

NASDAQ EMBC traded down $1.11 during trading on Thursday, reaching $10.24. 994,419 shares of the company traded hands, compared to its average volume of 606,273. The stock’s 50 day moving average price is $11.84 and its two-hundred day moving average price is $12.97. Embecta has a 1-year low of $9.20 and a 1-year high of $18.12. The company has a market cap of $606.49 million, a price-to-earnings ratio of 6.29 and a beta of 1.11.

Embecta Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Investors of record on Friday, December 5th were given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 5.9%. The ex-dividend date of this dividend was Friday, December 5th. Embecta’s dividend payout ratio (DPR) is 36.81%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on EMBC. Weiss Ratings reissued a “hold (c-)” rating on shares of Embecta in a research note on Wednesday, January 21st. Wall Street Zen upgraded shares of Embecta from a “buy” rating to a “strong-buy” rating in a research note on Saturday, December 27th. Finally, BTIG Research restated a “buy” rating on shares of Embecta in a research note on Tuesday, November 25th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Embecta currently has a consensus rating of “Hold” and an average price target of $18.50.

Hedge Funds Weigh In On Embecta

Several large investors have recently made changes to their positions in EMBC. Dimensional Fund Advisors LP increased its stake in Embecta by 11.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 789,509 shares of the company’s stock worth $11,140,000 after purchasing an additional 81,218 shares in the last quarter. Ameriprise Financial Inc. lifted its stake in Embecta by 439.1% during the second quarter. Ameriprise Financial Inc. now owns 709,849 shares of the company’s stock worth $6,878,000 after purchasing an additional 578,174 shares during the last quarter. JPMorgan Chase & Co. grew its position in Embecta by 39.5% during the 3rd quarter. JPMorgan Chase & Co. now owns 434,822 shares of the company’s stock worth $6,135,000 after acquiring an additional 123,113 shares during the last quarter. Squarepoint Ops LLC boosted its position in Embecta by 103.6% during the 2nd quarter. Squarepoint Ops LLC now owns 403,412 shares of the company’s stock worth $3,909,000 after buying an additional 205,311 shares during the period. Finally, Qube Research & Technologies Ltd increased its holdings in Embecta by 83.0% in the second quarter. Qube Research & Technologies Ltd now owns 362,935 shares of the company’s stock valued at $3,517,000 after purchasing an additional 164,570 shares during the period. Institutional investors and hedge funds 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.