Erste Group Bank Has Positive Outlook of MRK FY2026 Earnings

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for Merck to $2.75, up from $2.70 and close to the $2.76 analyst consensus. Merck’s latest quarterly results also exceeded expectations, with $16.61 billion in revenue and maintained full-year EPS guidance of $2.66–$2.76.
• Analyst sentiment remains favorable, with 14 Buy ratings and seven Holds, producing a “Moderate Buy” consensus and an average price target of $135.11; several firms recently raised their targets to $142–$150.
• Merck declared a quarterly dividend of $0.85 per share, or $3.40 annualized, representing a yield of approximately 2.6%. Investors still face risks from upcoming Keytruda patent expirations and continued insider selling.

Merck & Co., Inc. (NYSE:MRK - Free Report) - Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for shares of Merck & Co., Inc. in a research report issued to clients and investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now anticipates that the company will earn $2.75 per share for the year, up from their prior forecast of $2.70. The consensus estimate for Merck & Co., Inc.'s current full-year earnings is $2.76 per share.

Several other equities research analysts have also issued reports on MRK. Weiss Ratings lowered shares of Merck & Co., Inc. from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 15th. Guggenheim increased their price objective on shares of Merck & Co., Inc. from $145.00 to $146.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Barclays raised their price objective on Merck & Co., Inc. from $140.00 to $150.00 and gave the company an "overweight" rating in a report on Wednesday, July 29th. Wells Fargo & Company lifted their target price on Merck & Co., Inc. from $145.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, July 8th. Finally, BMO Capital Markets upped their target price on Merck & Co., Inc. from $135.00 to $142.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $135.11.

Merck & Co., Inc. Stock Performance

Shares of MRK opened at $130.35 on Wednesday. Merck & Co., Inc. has a 12 month low of $77.58 and a 12 month high of $135.05. The firm has a fifty day simple moving average of $124.58 and a 200 day simple moving average of $119.47. The stock has a market capitalization of $321.59 billion, a price-to-earnings ratio of 104.28, a PEG ratio of 5.66 and a beta of 0.19. The company has a current ratio of 1.30, a quick ratio of 1.06 and a debt-to-equity ratio of 1.02.

Merck & Co., Inc. (NYSE:MRK - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.26) by $0.13. Merck & Co., Inc. had a net margin of 4.77% and a return on equity of 16.05%. The company had revenue of $16.61 billion during the quarter, compared to analysts' expectations of $16.37 billion. During the same period last year, the business earned $2.13 EPS. The business's quarterly revenue was up 5.1% on a year-over-year basis. Merck & Co., Inc. has set its FY 2026 guidance at 2.660-2.760 EPS.

Hedge Funds Weigh In On Merck & Co., Inc.

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC boosted its position in Merck & Co., Inc. by 29.5% during the fourth quarter. Brighton Jones LLC now owns 38,278 shares of the company's stock worth $3,808,000 after purchasing an additional 8,710 shares during the period. Sivia Capital Partners LLC raised its position in shares of Merck & Co., Inc. by 52.2% in the second quarter. Sivia Capital Partners LLC now owns 11,494 shares of the company's stock valued at $910,000 after purchasing an additional 3,941 shares during the period. Diversify Advisory Services LLC raised its position in shares of Merck & Co., Inc. by 94.1% in the second quarter. Diversify Advisory Services LLC now owns 32,256 shares of the company's stock valued at $2,590,000 after purchasing an additional 15,636 shares during the period. Diversify Wealth Management LLC lifted its stake in shares of Merck & Co., Inc. by 22.2% during the 2nd quarter. Diversify Wealth Management LLC now owns 38,031 shares of the company's stock worth $3,054,000 after buying an additional 6,897 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Merck & Co., Inc. by 111.7% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 681,128 shares of the company's stock worth $53,918,000 after buying an additional 359,356 shares during the last quarter. Institutional investors and hedge funds own 76.07% of the company's stock.

Insider Activity

In other news, EVP David R. Maraldo sold 18,706 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $128.72, for a total transaction of $2,407,836.32. Following the transaction, the executive vice president directly owned 18,212 shares in the company, valued at $2,344,248.64. The trade was a 50.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Chirfi Guindo sold 15,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $131.00, for a total transaction of $1,965,000.00. Following the completion of the sale, the executive vice president directly owned 46,613 shares in the company, valued at approximately $6,106,303. The trade was a 24.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 92,603 shares of company stock worth $11,966,744. 0.17% of the stock is owned by insiders.

Merck & Co., Inc. Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Tuesday, September 15th will be paid a $0.85 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $3.40 dividend on an annualized basis and a yield of 2.6%. Merck & Co., Inc.'s dividend payout ratio (DPR) is currently 272.00%.

Merck & Co., Inc. News Summary

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

• Positive Sentiment: The FDA and European Medicines Agency accepted supplemental applications to expand ENFLONSIA, Merck’s RSV preventive therapy, to additional high-risk young children. The potential broader indication could expand Merck’s infectious-disease portfolio and help diversify revenue beyond oncology. Merck Wins FDA and EMA Review for Broader RSV Use in Children
• Positive Sentiment: Argus raised its price target on MRK from $130 to $145 and reiterated a “buy” rating, adding to a generally favorable analyst view. Recent targets from other firms have also reached the $146–$150 range, reflecting confidence in Keytruda, animal health and the development pipeline.
• Positive Sentiment: Merck’s latest quarterly results exceeded expectations, with revenue of $16.61 billion versus a $16.37 billion consensus estimate and revenue growth of 5.1% year over year. Oncology and animal health were key contributors, while the company maintained 2026 adjusted EPS guidance of $2.66–$2.76. Merck Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Merck declared a quarterly dividend of $0.85, equivalent to $3.40 annually and a yield of roughly 2.6%. The dividend supports the stock’s income appeal, although the reported payout ratio is elevated because current earnings are depressed by unusual factors.
• Neutral Sentiment: Reports discussing a proposal to separate the measles, mumps and rubella vaccine into three shots could create uncertainty around Merck’s vaccine business, including MMR II. Experts say the plan lacks scientific support and is unlikely to proceed. Trump Wants to Split the MMR Vaccine
• Negative Sentiment: Analysts continue to flag falling estimates and the risk from upcoming Keytruda patent expirations, which could pressure Merck’s near-term growth and valuation despite strong current sales and pipeline progress. MRK Stock Up 5.6% in a Month as Estimates Fall
• Negative Sentiment: Executive Vice President Richard Deluca sold 6,050 shares worth approximately $788,799. The sale reduced his holdings by 3.75%, though he continues to own a substantial position and the transaction alone is not necessarily a signal of deteriorating fundamentals. Merck EVP Sells Stock

Merck & Co., Inc. Company Profile

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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