Erste Group Bank Has Pessimistic View of MRK FY2026 Earnings

Key Points

• Erste Group Bank sharply cut its FY2026 EPS forecast for Merck to $2.70 from $5.14, slightly below the current consensus estimate of $2.76 per share. The firm also projected FY2027 EPS of $9.52.
• Analyst sentiment on Merck remains generally positive, with several firms raising price targets and the stock carrying a consensus “Moderate Buy” rating. MarketBeat says the average target price is $133.94.
• Merck recently beat Q1 earnings and revenue expectations, reporting EPS of -$1.28 versus an expected -$1.47 and revenue of $16.29 billion versus $15.85 billion expected. The company reaffirmed FY2026 guidance of $5.04 to $5.16 EPS.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Equities research analysts at Erste Group Bank cut their FY2026 earnings per share (EPS) estimates for Merck & Co., Inc. in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the company will post earnings per share of $2.70 for the year, down from their previous estimate of $5.14. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $2.76 per share. Erste Group Bank also issued estimates for Merck & Co., Inc.'s FY2027 earnings at $9.52 EPS.

MRK has been the topic of a number of other research reports. Wells Fargo & Company upped their price target on shares of Merck & Co., Inc. from $145.00 to $150.00 and gave the company an "overweight" rating in a research note on Wednesday, July 8th. Guggenheim boosted their price objective on shares of Merck & Co., Inc. from $140.00 to $145.00 and gave the company a "buy" rating in a report on Monday, July 13th. Cantor Fitzgerald reissued a "neutral" rating and set a $120.00 price objective on shares of Merck & Co., Inc. in a report on Monday, July 6th. Bank of America upped their target price on Merck & Co., Inc. from $130.00 to $141.00 and gave the company a "buy" rating in a research report on Tuesday, June 30th. Finally, Scotiabank lifted their price target on Merck & Co., Inc. from $136.00 to $155.00 and gave the stock a "sector outperform" rating in a research report on Tuesday, June 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Merck & Co., Inc. currently has a consensus rating of "Moderate Buy" and an average price target of $133.94.

Merck & Co., Inc. Stock Down 0.0%

MRK stock opened at $127.47 on Monday. The stock has a market capitalization of $314.83 billion, a PE ratio of 35.91, a price-to-earnings-growth ratio of 5.04 and a beta of 0.19. Merck & Co., Inc. has a 52 week low of $76.66 and a 52 week high of $131.74. The company has a quick ratio of 1.06, a current ratio of 1.30 and a debt-to-equity ratio of 1.02. The firm has a 50 day moving average of $120.11 and a 200 day moving average of $117.01.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported ($1.28) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.47) by $0.19. The firm had revenue of $16.29 billion for the quarter, compared to the consensus estimate of $15.85 billion. Merck & Co., Inc. had a net margin of 13.59% and a return on equity of 27.55%. The company's revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.22 earnings per share. Merck & Co., Inc. has set its FY 2026 guidance at 5.040-5.160 EPS.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in MRK. Vanguard Group Inc. raised its stake in shares of Merck & Co., Inc. by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 254,322,763 shares of the company's stock valued at $26,770,014,000 after buying an additional 2,185,853 shares during the last quarter. State Street Corp raised its position in Merck & Co., Inc. by 1.6% during the fourth quarter. State Street Corp now owns 120,040,168 shares of the company's stock valued at $12,737,504,000 after acquiring an additional 1,859,990 shares in the last quarter. Wellington Management Group LLP raised its position in Merck & Co., Inc. by 14.8% during the fourth quarter. Wellington Management Group LLP now owns 86,435,458 shares of the company's stock valued at $9,098,196,000 after acquiring an additional 11,156,354 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Merck & Co., Inc. by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 60,047,984 shares of the company's stock valued at $6,307,572,000 after acquiring an additional 249,110 shares during the period. Finally, Morgan Stanley boosted its position in Merck & Co., Inc. by 0.8% in the 4th quarter. Morgan Stanley now owns 44,946,021 shares of the company's stock worth $4,731,018,000 after purchasing an additional 359,486 shares in the last quarter. Hedge funds and other institutional investors own 76.07% of the company's stock.

Merck & Co., Inc. Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Monday, June 15th were issued a $0.85 dividend. This represents a $3.40 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Monday, June 15th. Merck & Co., Inc.'s dividend payout ratio is 95.77%.

Trending Headlines about Merck & Co., Inc.

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

• Positive Sentiment: The FDA approval of LIPFENDRA gives Merck its first oral PCSK9 inhibitor, opening a new revenue stream in cardiovascular care and strengthening its non-oncology portfolio. Reuters article on FDA approval
• Positive Sentiment: Analysts highlighted continued oncology pipeline progress, including FDA acceptance of multiple regulatory filings and Merck’s broader effort to offset the eventual 2028 Keytruda patent cliff. Seeking Alpha article on pipeline expansion
• Neutral Sentiment: Coverage also noted that Lipfendra’s launch is expected soon and that the drug could become a major product over time, though sales will depend on uptake, pricing, and competition from existing cholesterol therapies. Zacks article on Lipfendra launch
• Neutral Sentiment: There was also a rumor that Merck may be in a takeover battle for genomics company Personalis, but this appears speculative and is not confirmed. Yahoo Finance article on Personalis rumor

About Merck & Co., Inc.

Merck & Co, Inc is a global biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines, vaccines, biologic therapies and animal health products. Its portfolio spans multiple therapeutic areas with a particular emphasis on oncology, vaccines and infectious disease, as well as therapies for metabolic and chronic conditions. Among its well-known products are the cancer immunotherapy Keytruda (pembrolizumab) and the human papillomavirus vaccine Gardasil; the company also markets a range of medicines and vaccines for veterinary use through Merck Animal Health.

Founded in the late 19th century as the U.S.

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