Merck & Co., Inc. (NYSE:MRK) Releases Earnings Results

Key Points

• Merck beat quarterly expectations, reporting EPS of $2.49 versus the $2.09 consensus and revenue of $18.09 billion versus $17.33 billion. Revenue increased 4.7% year over year, and the company raised its 2026 revenue and EPS guidance.
• Growth from newer products remained strong: WINREVAIR sales rose 94% to $694 million, WELIREG increased 58% to $307 million, and KEYTRUDA sales grew 6% to $8.6 billion. Merck also highlighted encouraging clinical-trial results across its oncology and immunology pipeline.
• Patent expirations and generic competition remain key risks. Merck expects more than $2 billion in 2027 revenue headwinds from products including BRIDION and the JANUVIA family, while KEYTRUDA growth is expected to moderate ahead of its eventual loss of exclusivity.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $2.49 EPS for the quarter, topping the consensus estimate of $2.09 by $0.40, FiscalAI reports. The company had revenue of $18.09 billion during the quarter, compared to the consensus estimate of $17.33 billion. Merck & Co., Inc. had a net margin of 4.77% and a return on equity of 16.73%. The company's quarterly revenue was up 4.7% on a year-over-year basis. During the same quarter last year, the firm posted $2.58 EPS.

Here are the key takeaways from Merck & Co., Inc.'s conference call:

• Third-quarter revenue rose 5% to $18.1 billion, while Merck raised the midpoint of its 2026 revenue and EPS guidance to $66.8–$67.3 billion and $2.77–$2.82, respectively.
• Newer products continued to gain traction, including WINREVAIR, whose sales increased 94% to $694 million, and WELIREG, up 58% to $307 million; KEYTRUDA sales also grew 6% to $8.6 billion.
• Management highlighted encouraging pipeline progress, including positive phase III data for sac-TMT in endometrial cancer, favorable results for the individualized cancer vaccine intismeran in melanoma, and positive phase IIb data for tulisokibart in hidradenitis suppurativa.
• Management expects more than $2 billion of 2027 revenue headwinds from generic competition and loss of exclusivity affecting BRIDION, the JANUVIA family, and A​​DEMPAS, while KEYTRUDA growth is expected to moderate ahead of its eventual loss-of-exclusivity period.
• Merck expects 2027 to be another investment year, with operating expenses rising at a mid- to high-single-digit rate as it funds launches and pipeline development; vaccine utilization trends, pricing pressure outside the U.S., and policy changes in Germany remain areas to monitor.

Merck & Co., Inc. Stock Up 3.8%

Shares of NYSE:MRK traded up $5.39 during trading on Thursday, reaching $146.32. 13,434,502 shares of the stock were exchanged, compared to its average volume of 9,881,721. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.32 and a quick ratio of 1.10. Merck & Co., Inc. has a 1-year low of $82.01 and a 1-year high of $156.92. The stock has a fifty day moving average of $146.89 and a two-hundred day moving average of $126.49. The firm has a market cap of $360.99 billion, a price-to-earnings ratio of 43.90, a price-to-earnings-growth ratio of 6.49 and a beta of 0.21.

Insider Buying and Selling

In related news, EVP Jennifer Zachary sold 80,315 shares of Merck & Co., Inc. stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $133.46, for a total value of $10,718,839.90. Following the completion of the sale, the executive vice president owned 45,509 shares of the company's stock, valued at approximately $6,073,631.14. This trade represents a 63.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Richard Deluca sold 20,784 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $130.43, for a total transaction of $2,710,857.12. Following the sale, the executive vice president owned 134,703 shares of the company's stock, valued at $17,569,312.29. This trade represents a 13.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 228,238 shares of company stock worth $29,977,783 over the last quarter. Corporate insiders own 0.17% of the company's stock.

Analyst Ratings Changes

A number of research firms recently issued reports on MRK. Citigroup boosted their target price on shares of Merck & Co., Inc. from $125.00 to $145.00 and gave the company a "neutral" rating in a research report on Monday, October 12th. Royal Bank Of Canada reduced their price target on shares of Merck & Co., Inc. from $150.00 to $145.00 and set a "sector perform" rating for the company in a report on Monday, October 12th. Berenberg Bank lifted their price target on shares of Merck & Co., Inc. from $127.00 to $137.00 and gave the company a "hold" rating in a research note on Friday, September 11th. Weiss Ratings raised shares of Merck & Co., Inc. from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. Finally, Scotiabank upped their price objective on shares of Merck & Co., Inc. from $155.00 to $180.00 and gave the company a "sector outperform" rating in a report on Tuesday, September 29th. Seventeen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $153.12.

Key Headlines Impacting Merck & Co., Inc.

Here are the key news stories impacting Merck & Co., Inc. this week:

• Positive Sentiment: Beat-and-raise results supported the stock. Merck lifted its 2026 adjusted earnings outlook, helped by better performance from Keytruda—including the newer Qlex formulation—and recently launched products. The company’s sales forecast was raised to approximately $66.8 billion-$67.3 billion. MRK Q3 earnings and sales beat estimates
• Positive Sentiment: Growth from newer products is helping offset longer-term patent concerns. WINREVAIR revenue rose sharply, reaching about $694 million, while Keytruda and Qlex sales remained resilient. Investors are looking for these products to reduce Merck’s dependence on Keytruda before its expected patent-related erosion later in the decade. Merck revenue up on Keytruda and Winrevair growth
• Positive Sentiment: Oncology pipeline news improved Merck’s growth narrative. Phase 3 data showed KEYTRUDA reduced the risk of disease progression in advanced endometrial cancer, while sacituzumab tirumotecan produced positive late-stage results and received FDA priority review. These developments could expand Merck’s future cancer franchise if approvals and commercialization succeed. Merck Phase 3 endometrial cancer data and FDA review
• Neutral Sentiment: Near-term revenue quality remains mixed. Management indicated that roughly $550 million of quarterly sales benefited from customer-purchase timing, suggesting underlying growth was closer to flat. Merck also warned of generic-drug headwinds in 2027, making pipeline execution increasingly important.
• Negative Sentiment: Patent-cliff and legal risks remain overhangs. Keytruda’s eventual loss of exclusivity remains the central long-term concern, and a law firm announced an investigation into potential securities-law violations related to an October 22 disclosure. No wrongdoing has been established.

About Merck & Co., Inc.

Merck & Co, Inc is a global healthcare company that develops, manufactures and markets prescription medicines, vaccines and animal-health products. Its pharmaceutical business focuses on oncology, infectious diseases, cardiology, immunology and other areas of significant medical need. The company serves patients, healthcare providers and institutions in markets worldwide.

Merck's principal products include Keytruda, an immunotherapy used to treat a range of cancers; Gardasil and Gardasil 9, vaccines that help protect against human papillomavirus; and Januvia and Janumet, medicines used to manage type 2 diabetes.

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