Merck & Company, Inc.
MRK · NYSE
Next quarter
Expected to report Feb 2, 2027 — estimated from last year’s reporting date.
Consensus is $1.83 EPS for Dec 2026 across 5 estimates, ranging $1.73 to $1.96.
MRK Sep 2026
- 17.45%
- $2.12
- $2.49
- —
- —
Highlights
- Sales: Third-quarter revenue was $18.085 billion, up 5% year over year from $17.276 billion and 9% sequentially from $16.607 billion.
- EPS comparison: The supplied headline figures show EPS of $2.49 versus consensus of $2.12, a 17.45% beat. Merck’s release separately reports GAAP diluted EPS of $2.04, down from $2.32 a year earlier; the release does not reconcile the supplied $2.49 figure.
- GAAP earnings: Net income attributable to Merck was $5.065 billion, down 12% from $5.785 billion a year ago, but rebounded from losses of $1.335 billion in Q2 and $4.240 billion in Q1.
- Pharmaceuticals: Sales rose 4% to $16.268 billion; animal-health sales increased 4% to $1.676 billion.
- Keytruda: Global sales fell 5% to $7.771 billion, including a 7% decline in the U.S. to $4.520 billion and essentially flat international sales of $3.251 billion.
- Growth products: Winrevair sales increased 93% to $694 million, Welireg rose 56% to $307 million, and Gardasil/Gardasil 9 grew 14% to $1.995 billion.
- Nine-month picture: Sales increased 5% to $50.978 billion, but Merck recorded a $510 million attributable net loss versus $15.291 billion of income in the first nine months of 2025; reported diluted EPS was -$0.21 versus $6.08.
Analysis
Merck delivered $18.085 billion of third-quarter sales, 5% above the year-ago quarter and 9% above Q2. The supplied headline comparison puts EPS at $2.49 against $2.12 consensus, a 17.45% beat. However, the earnings release reports GAAP diluted EPS of $2.04, down from $2.32 a year earlier, and does not reconcile the supplied $2.49 figure. GAAP net income attributable to Merck was $5.065 billion, 12% below last year’s $5.785 billion, but a sharp recovery from the first-half losses: $1.335 billion in Q2 and $4.240 billion in Q1.
Commercially, growth was broad across pharmaceuticals and animal health, but the largest product remained a drag: Keytruda declined 5% to $7.771 billion. Gains in Winrevair, Welireg and Gardasil helped offset that pressure, while Bridion fell 67% to $144 million. The wider year-to-date result remains unusual: sales rose 5% to $50.978 billion, yet Merck posted a $510 million net loss, against $15.291 billion of income in the prior-year period. The release shows year-to-date R&D expense of $26.871 billion versus $11.903 billion, alongside GAAP diluted EPS of -$0.21 versus $6.08. Thus the quarter’s return to profitability did not erase the accumulated first-half losses.
Earnings and comparison
The quarter’s profit recovery followed two consecutive loss-making quarters, while year-over-year GAAP earnings were lower despite higher sales. The EPS expectation comparison needs a basis caveat: the supplied headline reports $2.49 versus $2.12 consensus, but Merck’s release gives GAAP diluted EPS of $2.04 and does not explain the difference.
- GAAP net income: $5.065 billion attributable to Merck, down 12% from $5.785 billion in Q3 2025.
- Sequential recovery: Attributable net losses were $4.240 billion in Q1 and $1.335 billion in Q2; Q3 returned to $5.065 billion of income.
- GAAP diluted EPS: $2.04, versus $2.32 a year earlier and -$0.54 in Q2.
Sales and franchises
Revenue rose both year over year and sequentially. Pharmaceuticals supplied most of the growth, while animal health also advanced. Within the pharmaceutical portfolio, growth in several newer or expanding products contrasted with declining Keytruda sales.
- Total sales: $18.085 billion, up 5% year over year; Q2 sales were $16.607 billion.
- Pharmaceuticals: $16.268 billion, up 4%; animal health was $1.676 billion, up 4%.
- Keytruda: $7.771 billion, down 5%; U.S. sales fell 7% to $4.520 billion, while international sales were broadly flat at $3.251 billion.
- Selected growth products: Winrevair rose 93% to $694 million, Welireg increased 56% to $307 million, and Gardasil/Gardasil 9 grew 14% to $1.995 billion.
Product pressure points
Growth was uneven across the portfolio. Keytruda’s decline matters given its scale, while several established products also contracted. In contrast, Winrevair’s rapid expansion and gains in vaccines and specialty medicines provided meaningful offsets.
- Declines: Bridion fell 67% to $144 million; Januvia declined 51% to $186 million; and Vaxneuvance fell 14% to $195 million.
- Additional growth: Prevymis increased 30% to $347 million, Reblozyl alliance revenue rose 31% to $177 million, and animal-health sales grew 4% to $1.676 billion.
Nine-month earnings and costs
The year-to-date figures show why a profitable Q3 does not represent a return to the prior-year earnings level. Sales increased, but the company remained modestly loss-making through September after sizable first- and second-quarter losses. The release reports much higher year-to-date R&D expense, without providing a 2026 non-GAAP reconciliation in the supplied material.
- Sales: $50.978 billion for the first nine months, up 5% from $48.611 billion.
- Net income: Attributable net loss of $510 million, versus $15.291 billion of income in the first nine months of 2025.
- R&D expense: $26.871 billion year to date, compared with $11.903 billion a year earlier; reported diluted EPS was -$0.21 versus $6.08.
